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TMI Blog2024 (6) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... vitiate the addition. We, therefore, confirmed the findings of the CIT(A). While computing the business income by estimating it at 3% on the turnover, AO will consider the quantum of SBN deposited during the demonetization period and added separately. This means the learned Assessing Officer will estimate the business income of the assessee at 3% on the turnover reduced by the quantum of SBN deposited during the demonetization period. Appeal of the assessee is allowed in part. - SHRI MANJUNATHA G., ACCOUNTANT MEMBER AND SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER For the Assessee : Shri T. Rajendra Prasad, AR For the Revenue : Shri Shakeer Ahamed, DR ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 12/02/2024 passed by the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and estimated the income at 5% of the turnover, and there are no grounds to interfere with such estimate. He accordingly confirmed the addition on account of business income. Insofar as the addition on account of unexplained cash credits is concerned, assessee pleaded before the Ld. CIT(A) that the cash in specified banknotes deposited in bank was only Rs. 34,47,500/- and not Rs. 1,04,79,650/-. He further pleaded that in view of the decision of the Bangalore Bench of the Tribunal in the case of Sh. Arfin vs. ACIT in ITA No. 976/Bang/2022, the unexplained bank deposits cannot be considered under section 68 of the Act and therefore, no addition could be made on that score. Ld. CIT(A), however referred to the decisions of the Hon'ble Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o arrive at the turnover of a businessman, the estimate has become imperative, and therefore, the best judgement exercised by the learned Assessing Officer by estimating the profit of the assessee at 5% of the turnover cannot be found fault with. He further submitted that as rightly pointed out by the Ld. CIT(A) the Hon'ble Supreme Court, various High Courts and Benches of the Tribunal held time and again that it is well settled that where the power to proceed is actually there, the mere reference to a wrong section for authority to act, will not vitiate the action taken. In this case if not section 68 of the Act is applicable, certainly the provisions of section 69A of the Act are applicable. Merely because the learned Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and therefore, the addition has to be deleted. Undisputedly, in the face of the allegations of the learned Assessing Officer, section 69A of the Act would be attracted. Mere quoting a wrong section of law will not vitiate the addition. We, therefore, confirmed the findings of the Ld. CIT(A). However, while computing the business income by estimating it at 3% on the turnover, learned Assessing Officer will consider the quantum of SBN deposited during the demonetization period and added separately. This means the learned Assessing Officer will estimate the business income of the assessee at 3% on the turnover reduced by the quantum of SBN deposited during the demonetization period. 8. In the result, appeal of the assessee is allowed in par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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