9911796707
TMI Blog2024 (12) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee on the total cash credits found in four bank accounts, we need to reasonably estimate the income of assessee and do not agree with the AO estimating income @ 8%, which is not based on any comparable cases. And in this regard, we take note of the results of earlier subsequent years business returns of the assessee and in the absence of any comparables, estimate income @ 5%. The AO is therefore directed to compute taxable income @ 5% of Rs. 7,79,23,921/- after reducing the returned income. Since total credits from his bank accounts have been brought to tax as business income, separate addition of Rs. 1,01,26,500/- is found to be unwarranted in the peculiar facts of the case and therefore, directed to be deleted. Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BN totaling to Rs. 83,26,500/- in his Federal Bank account and Rs. 18,00,000/- in his ICICI Bank account i.e. total SBN s Rs. 1,01,26,500/-. The AO further noted in the assessment order that during survey proceedings, sworn statements were recorded from assessee, wherein he stated that he is engaged in the business of rigs spares in the name of Sri Murugan Rig Spares and gave details of bank accounts maintained by him and also submitted that he was maintaining proper books of accounts such as day book ledger in his computer [ refer answer to question no.5 ]. When confronted by the survey team by asking question no.6 as to source of amount deposited during demonetization period to the tune of Rs. 1,08,43,200/-, the assessee answered in his o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of Rs. 7,79,23,921/-. The AO thereafter noted that assessee has admitted business profit of Rs. 14,69,979/- and in the absence of relevant documents produced, he estimated income of the assessee by applying 8% on the total credits accumulated in the four bank accounts i.e.,Rs.7,79,23,921/- minus Rs. 1,01,26,500/- (SBNs) i.e., Rs. 6,77,97,421/- and 8% of which works out to Rs. 54,23,794/- which was added as additional business income. Thereafter, AO made addition of Rs. 1,01,26,500/- separately u/s. 69A, being SBN deposited during demonetization period. Aggrieved, assessee preferred appeal before the Ld.CIT(A), who was pleased to confirm the same. Aggrieved, assessee is before us. 4. We have heard both the parties and perused record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Garib Kalyan Yojana, 2016 i.e. an amount of Rs. 66,63,690/-. However, after 20 days the assessee on 30.03.2017 retracted his aforesaid offer i.e. assessee didn t offer the amount of Rs. 66,63,690/- under Pradhan Mandhiri Garib Kalyan Yojana, 2016; and instead filed return of income declaring Rs. 13,88,000/- showing total business income of Rs. 14,69,979/-. However, the AO without finding any incriminating materials unearthed during survey proceedings and without finding any fault in day book, ledger maintained in computer has rejected assessee s consistent stand that amount deposited during demonetization was its trade receipts, but instead made separate addition u/s. 69A of the total SBN deposited to the tune of Rs. 1,01,26,500/-. And tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RoI on 06.01.2016 and had shown turnover of Rs. 82,80,948/- and had shown net profit of 3.9%; and for AY 2016-17, assessee had filed return of income on 28.02.2017 and had shown turnover of Rs. 1,59,92,444/- and net profit of 6.7%. The Ld.AR also brought to our notice that during the year under consideration the assessee had filed VAT return which reflects sale of Rs. 3,41,85,548/-, which was his actual business turnover. However, the assessee doesn t want to contest the action of the AO estimating reasonable income based on total credits in the bank accounts to the tune of Rs. 7,79,23,921/- and has restricted his plea against making separate addition of SBN s u/s. 69A of the Act to the tune of Rs. 1,01,26,500/-. Be that as it may, we note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y based on the statement/offer made during survey u/s. 133A of the Act, i.e. an amount of Rs. 66,63,690/- would be offered under Pradhan Mandhiri Garib Kalyan Yojana, 2016, it would be unsafe to make addition u/s. 69A of the Act, when the assessee has retracted the same on 31.03.2017 by filing an affidavit [i.e. within 20 days]. Thus, we find that there is neither any relevant evidence/material to disprove assessee s assertion that SBNs deposited was part of business income of the assessee nor any evidence/material to show that SBNs deposited was income from any other undisclosed source of the assessee. In the light of the discussion (supra) and the materials placed on record, the assessee s explanation that Rs. 1,01,26,500/- [which include ..... X X X X Extracts X X X X X X X X Extracts X X X X
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