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TMI Blog2024 (10) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... who requested the assessee to use his account for certain months as the owner s bank account has become inoperative and all the cash deposits were used for purchase of liquor - AO rejected contention of the assessee as the assessee failed to furnish confirmation letter from his owner, thus treated the entire cash deposit as business receipt of the assessee and made addition @8% of the total busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IMHA CHARY, J.M: Aggrieved by the order dated 05/07/2024 passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi ( learned CIT(A) ) in the case of Kanukuntla Lakshminarayana ( the assessee ) for the assessment year 2016-17, assessee preferred this appeal. 2. Brief facts of the case are that the assessee did not file his return of income for the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Assessing Officer treated the entire cash deposit of Rs,93,00,000/- as business receipt of the assessee and made addition of Rs. 7,51,200/- on account of estimation of business income @8% of the total business turnover of Rs. 93,90,900/-. 3. In appeal, the learned CIT(A) upheld the addition made by the learned Assessing Officer and dismissed the appeal of the assessee, holding that there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year 2012, estimation of net profit at 3% would meet the ends of justice. Learned AR further submitted that the assessee is a helper, earning a monthly salary of Rs. 12,500/- per month, deposited cash of Rs. 93,90,000/- in respect of business transactions of purchase and sale of liquor in his bank account maintained with State Bank of Hyderabad at the request of his owner for time being as his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the learned AR it reduced the profit margin. Coordinate Bench of the Tribunal in the case of Venkateshwar Nemuri in I.T.A.No.363/Hyd/2024 after considering the facts and circumstances held that the estimate of net profit of the assessee at 3% of the turnover would meet the ends of justice. Respectfully following the view taken by the coordinate Bench of the Tribunal, I direct the learned As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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