TMI Blog2025 (1) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... ing officer that in absence of day to day bills and vouchers with regard to cash sales etc, the book results cannot not be accepted, therefore, we uphold the order of the Assessing Officer in rejecting the books of account u/s. 145(3) of the Act. However, looking into the facts of the case, income estimated by applying profit rate seems to be higher side and in our considered view the profit rate @ 3% of total turnover of Rs. 5,16,06,634/- would be reasonable and would meet the ends of justice. We accordingly direct the Assessing Officer to compute the profit rate @ 3% of turnover of Rs. 5,16,06,634/- and the balance addition is hereby deleted. Unexplained cash credit under Section 69A - In the instant case, as it is evident that the bank d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... un-explained cash credit on the facts and in the circumstances of the case. 3. For that estimation of net profit @ 6% on the turnover of Rs. 5,16,06,634/- and consequential addition of Rs. 38,96,392/- (Rs.30,96,398/- determined by ld AO) as sustained by the ld CIT(A) is illegal, high and excessive on the facts and in the circumstances of the case. 4. The appeal is delayed by 423 days. The assessee has filed condonation petition supported by affidavit stating the reasons that due to oversight of the ld counsel for the assessee, the delay was occurred though the order was delivered to ld counsel for filing of appeal on time. After considering the petitions and hearing the parties, we are satisfied that the assessee had reasonable cause for f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... With regard to estimation of income, ld AR submits that estimation was on higher side though the Assessing Officer has stated it reasonable, however, had not cited any single case on record for application of such high profit. With regard to addition of Rs. 44,92,000/- deposited in the bank account maintained by the assessee during the period from 9.11.2016 to 30.12.2016, the Assessing Officer has made addition of the amount deposited in SBNs without confirming these facts from the Bank. The assessee is dealing in liquor business, where sales have been made in cash and the cash realizations were deposited in the bank account on regular basis. Once the books of account have been rejected and income is estimated on the turnover declared by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the record of the case. It is an undisputed fact that the assessee is dealing in IMFL, where most of the sales were made in cash. The assessee is bound to deposit the sales registers to the Excise Authorities after the expiry of the licence period, therefore, day to day sales as declared by the assessee has already been verified by the Excise Department and same has not been disputed by the Assessing Officer also. Since sales were made in cash, the amount deposited during the demonitisation period of Rs. 44,92,000/-were the sales consideration and the department has not filed any evidence that the entire amount of Rs. 44,92,000/- were SBNs. It is also relevant to mention here that the turnover declared by the assessee was Rs. 5,16,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made even if the income is estimated by invoking the provisions of section 145(3) of the Act (old section 13 of the Indian Income Tax Act). Further, the Hon ble Supreme Court had observed that this has to be seen depending upon the facts of each case and cannot be straight forward applied in all the cases. In the instant case, as it is evident that the bank deposits were made by the assessee out of IMFL business sales proceeds and has direct relationship, therefore, the ratio laid down by Hon ble Supreme Court in the case of Devi Prasad Vishsnnath (supra) are not applicable. It is also an undisputed fact that no other source of income was brought on record, therefore, it could be safely presumed that what has been deposited during demoneti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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