9911796707
TMI Blog2024 (9) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... as per audit report. Assessee has relied on the decision of Delhi Kalyan Samithi Ors [ 2016 (4) TMI 172 - DELHI HIGH COURT] wherein, categorically held that even though the return is filed belatedly, but prior to the completion of assessment has to be taken into consideration. In this case also, the return was filed much prior to the completion of assessment and the assessee has explained the source for cash deposits during the demonetization period, therefore, we are of the view that simply, delay in filing the return of income itself is not sufficient reason to estimate the profit of the assessee @15% on the turnover. If the assessee filed the return belatedly, there are other provisions to take action against the assessee, but simply, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year and filed return of income belatedly. The assessee filed e-response on 11.09.2019 submitting that he is having bank accounts with Lakshmi Vilas Bank, HDFC Bank, SBI and ICICI bank. The assessee submitted that the deposits were made out of the cash balance of Rs. 15,53,868/- as on 09.11.2016 and also out of sale proceeds the total deposits for the period were Rs. 16,44,500/-. The assessee further stated that he has filed the return belatedly on 21.09.2019 admitting an income of Rs. 5,56,999/-. The AO issued show cause notice to the assessee stating that the assessee is in the habitual practice of uploading the audit report in time and not filing the return in time by paying taxes. Accordingly, the AO estimated the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e prescribed, but only due to some personal reasons, the assessee was not able to file the return of income within the time prescribed in the notice u/s 143(2) of the Act. The assessee filed the return of income on 21.09.2019 and the assessment was completed on 12.12.2019. The AO had ample time to go through the return of income and elicit further information from the assessee, in case he wanted some more information. He, further submitted that apart from the audited financial statements formed the basis of his return of income, what was made available to the AO on 30.10.2017 itself, i.e. much prior to the issue of notice u/s 142(1) of the Act. Therefore, simply, the AO cannot estimate the income of the assessee @15% on total turnover of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported by invoices and sales are supported by sale bills. But the only grievance of the revenue is that the assessee had filed the income tax return belatedly on 21.09.2019 admitting the income at Rs. 5,56,999/- and paid taxes of Rs. 57,710/- on 18.07.2019. Therefore, the return was filed beyond the stipulated period, and accordingly, the AO estimated the income of the assessee @15% on the turnover. On this aspect, the assessee has relied on the decision of Hon ble Delhi High Court in the case of CIT Ors Vs. Delhi Kalyan Samithi Ors (supra) and the Hon ble High Court, wherein, categorically held that even though the return is filed belatedly, but prior to the completion of assessment has to be taken into consideration. In this case also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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