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TMI Blog2024 (9) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... 011-12. 2. In this appeal, the assessee has raised the following grounds:- "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming proceedings under section 147 of Income Tax Act, 1961. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs. 10,39,700/- being cash deposits as unexplained money u/s 69A of the Income Tax Act, 1961. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) failed to consider that cash deposited is out of opening balance, opening recovery and income earned during the year and offered for tax cannot be treated as unexplained money u/s 69A. 4. On the facts and circumstances of the case and in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unity and issuance of final show cause notice, the assessee did not make any compliance. Accordingly, the Assessing Officer ("AO") proceeded to complete the assessment on the basis of material available on record. In order to ascertain the information on the transaction entered into by the assessee, the AO carried out an independent enquiry by issuing notice u/s 133(6) of the Act to Jan Kalyan Sahakari Bank Ltd. requesting details of assessee's cash transactions. In the absence of any details/submissions from the assessee, the AO made an addition of the entire cash deposit of Rs. 10,39,700 u/s 69A of the Act. As regards the time deposits, the AO noted that the same pertains to cash deposits and therefore did not make any additions on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt was nothing but earnings from business and past savings only. Apart from the aforesaid submissions, the assessee has only furnished a copy of her return of income for the assessment years 2009-10, 2010-11 and 2011-12 on the record, filed by her on a presumptive basis to substantiate her claim. In her submissions before the learned Addl./Joint CIT(A), the assessee submitted that the return filed included gross receipts from the business amounting to Rs. 9,56,500. However, in the absence of any documentary evidence such a claim cannot be accepted, as there are also no details of cash in hand at the year-end. As per the assessee for the first time on 09/04/2010, she opened her bank account in Jan Kalyan Sahakari Bank Ltd, and prior to that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : - "4. We have heard both the appeals and also perused the relevant materials placed on record. It is an undisputed fact that assessee is in the business of retails sale of ladies garments and only source of income is through this business. Further, the sales have been recorded in cash which was regularly deposited in the bank account. Since assessee's turnover was ranging between 25-35 lakhs in a year, he has been showing the profit under presumptive rate of 8% u/s 44AD not only in the past but also in the subsequent years. Even if assessee's explanation that assessee has received cash of Rs. 27,00,000/- from M/s Sarita Exports has been found to be not acceptable in view of various findings given by the ld. AO and assessee could not reb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the business of retail sale of ladies' garments, then in the absence of documentary evidence, it can be reasonably presumed that the cash deposits could be from unaccounted sales from the business which the assessee had not disclosed in the return of income. As the aforesaid decision has been rendered in a similar factual matrix, respectfully following the same, we direct the AO to restrict the addition to 8% of the addition of Rs. 10,39,700/- made u/s 69A of the Act. As a result, grounds no. 2 and 3 raised in assessee's appeal are partly allowed. 9. Ground no. 4 raised in assessee's appeal pertains to the levy of interests u/s 234A, 234B and 234C of the Act, which is consequential. Therefore, this ground needs no separate adjudicati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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