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TMI Blog2025 (1) TMI 1494X X X X Extracts X X X X X X X X Extracts X X X X ..... e had stated that the business was based on 100% cash transactions and total transactions in the bank account were due to business transactions, therefore, on the principle of consistency and without giving reasons why the specific amount was held to be not pertaining to the business, once the deposits for the rest of the year were being treated as part of the business income, the deposit during the demonetization period could not be excluded and added u/s 69A of the Act merely because they pertained to the demonetization period. Assessee filed the written submission claiming that his entire business was in cash - Instead of adding a sum u/s 69A and the addition on account of business income AO is directed to apply the net profit rate of 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving the opportunity of being heard which is against the principle of natural justice. 5. For that whole order is bad in fact and the law of the case and is fit to be quashed. 6. For that order grounds, if any, shall be urged at the time of hearing of the appeal." 3. Brief facts of the case are that notice u/s 142(1) of the Act was issued on 17.03.2018 requiring the assessee to prepare a return of income but the assessee failed to furnish the same for the impugned assessment year. On the basis of data analytics and information available, the Ld. AO noted that the assessee had deposited a sum of Rs. 1,15,91,500/- in the bank account in Uttar Bihar Gramin Bank, Hajipur, A/c No. 1009151130000322 and during the demonetization period from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed the appellant's income on the basis of available bank transactions. AO has also identified Rs. 870440/- as business income and the balance amount of Rs. 7,11,000/-as unexplained cash credit but the appellant in his submission stated that the total transaction found in bank a/c was his business transaction. The appellant also stated that his business is best on 100% cash transaction. For the appellant considering the provisions of section 44AD of the Act, paid a tax amount of Rs. 71,070/-. Due to the non-availability of the supporting documents and the facts of the case the A.O. has rightly assessed the income of the appellant at Rs. 15,81,440/-. Considering the circumstances, I have no reason to interfere with the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) the assessee filed the written submission claiming that his entire business was in cash. That being so and considering the fact that for the rest of the year net profit rate of 8% has been applied, the Ld. DR had no objection in case 8% of the net profit was applied on the entire deposit in the bank account. Hence, instead of adding a sum of Rs. 7,11,000/- u/s 69A of the Act and the addition on account of business income at Rs. 8,70,440/-, the Ld. AO is directed to apply the net profit rate of 8% on the entire bank deposits of Rs. 1,15,91,500/- which works out to Rs. 9,27,320/- and assess the total income at Rs. 9,27,320/- instead of Rs. 15,81,440 assessed. Accordingly, the Ld. AO is directed to apply the rate of 8% of the net profit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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