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TMI Blog2019 (2) TMI 2120X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 (in short 'the Act') by erstwhile Income Tax Officer, Ward- 7(1), Surat (in short "the AO"). 2. Ground no. 1 states Ld. CIT (A) has grossly erred in confirming addition of Rs. 19,90,438 being entire sale receipts deposited in cash in bank account by treating as unexplained income, without appreciating that the said receipts are not income but are the sale proceeds hence, the said addition should have been deleted and the profit on sales at Rs. 92,940 earned thereon and duly offered by the appellant needs to be accepted. 3. Brief facts are that the AIR information revealed that the assessee has cash deposits of Rs. 19,90,400 in his bank account with Surat Peoples Co- Operative Bank Ltd. Surat. Therefore, the assessee was asked to explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... textile business is not supported by any evidence. Even otherwise, business transaction in saving bank account are not permitted. Therefore, the CIT (A) has not accepted the claim of the assessee that cash deposits should be treated as business turnover. The appellant is pursuing litigation against his dismissal from Surat Municipal Corporation, but there is no mention of other living expenses. Nor the benefit of withdrawals can be given to the assessee. In view of this matter, the addition of Rs. 19,40,400 was came to be confirmed. 5. Being, aggrieved the assessee filed this appeal before the Tribunal. The learned counsel for the assessee submitted that entire cash deposits cannot be treated as unaccounted income of the assessee. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46 crores represents the income of the assessee. CIT(A) instead of adding 1% of Rs. 2.46 crores adopted peak credit of theory, which was also upheld by the Tribunal. No question of law arises. Tax appeal is, therefore, dismissed. 6. Per contra, the ld. Sr. D.R. vehemently relied on the orders of lower authorities. 7. We have heard the rival submissions and perused the relevant material on record. The perusal of bank account statement shows that the cash deposit as well as cash withdrawals in the bank account statement placed at paper book page no. 48 to 52. We find that both the parties below have failed to appreciate the facts that on various occasions, the assessee has withdrawn cash from the same account and deposited the said cash in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional High Court of Gujarat in the case of CIT v. President Industries [2002] 258 ITR 654 (Gujarat) wherein it was held that in the absence of any finding of the material that there was suppression of investment in acquiring the goods which are subject of undisclosed sales, Tribunal was justified in holding that entire undisclosed sales could not be treated as income of the assessee but addition could be made only to the extent of estimated profits and embedded in sales for which the net profit rate was adopted, no referable question of law arises. Similarly, the Hon`ble Jurisdictional High Court of Gujarat in the case of Principal Commissioner of Income Tax v. Shri Inderjeet Zandusingh Tomar Tax Appeal No. 908 of 2015 dated 22.12.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, the AO in in the remand report has specifically mentioned that profit element in respect of sale transactions should be enhanced to Rs.13,77,296. Though the appellant was given an opportunity to reply on this, he did not address this issue in his reply and express inability to furnish any further information. Therefore, profit from shares was estimated at 20% of sale proceeds (cheque/transfer deposits of Rs. 13, 77, 296) Rs. 2,75, 495. 12. Being, aggrieved the assessee filed this appeal before the Tribunal. The learned counsel for the assessee contended that the profit element in shares transaction remains very low hence, the estimation @ 20% of share transaction is on higher side hence, same may be scaled down. 13. Per contra, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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