9911796707
TMI Blog2025 (2) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee and no further information was given by the assessee in response to the letter dated 18.01.2018. therefore dismiss the legal ground raised in ground no.4. Unexplained cash deposit - Alleged sum is part of the sale consideration received by the assessee during the year from the business of trading in Cashew Seeds. Estimation of net profit apart from placing the purchase and sale register, no other documents supporting the expenditure has been furnished and also the cash received has mostly being utilized either for purchase or for making payment to husband and purchase of immovable property. Therefore, certainly the margin of profit of the assessee is on much higher side as has been declared in the income tax return. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revailing in the case and as per provisions and scheme of the Act it be held that Ld. AO and Ld. CIT(A)-NFAC both erred in not considering the cash withdrawals being the source of cash deposits. That is, at the most addition of peak credit could have been done. Accordingly, addition made in excess of cash withdrawal be kindly deleted and Appellant be granted just and proper relief in this respect. 3. Without prejudice to other grounds and on the facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that income to the tune of Rs. 2,02,640/- has been charged to tax twice. Accordingly, income to that extent be kindly deleted and Appellant be granted just and proper relief in this respect. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled. In absence of any reply from the assessee, Ld. Assessing Officer has reason to believe that the cash deposit from undisclosed sources and thus issued notice u/s 148 of the Act. In response to which, the assessee furnished the return on 18.09.2018 declaring income of Rs. 2,02,644/- which included income declared under presumptive taxation scheme for the business of trading in Cashew Seeds at Rs. 1,96,800/- on the turnover of Rs. 18,00,420/- and income from other sources of Rs. 5,844/-. Subsequently, Ld. Assessing Officer issued valid notices u/s 143(2) and 142(1) of the Act. Thereafter, Ld. Assessing Officer also issued notice u/s 133(6) to the Branch Manager, Kokan Mercantile Co-operative Bank Ltd. and observed that there is a cash de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and affidavit of sellers of Cashew Seeds have been filed first time before this Tribunal. Firstly, Ld. Counsel of the assessee made submission on the legal ground stating that the reopening of assessment has been carried out after lapse of 4 years and Ld. Assessing Officer had failed to carry out any independent enquiry in the form of getting bank statements and cross-examination of the transactions which could have clearly demonstrated that there have been cash withdrawal on various occasions. So far as merits of the case is concerned, he submitted that the assessee is carrying on the business activity in remote village and she make regular purchases from farmers and sells them in the market and since in the past business income earned bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pond to the communication of the Assessing Officer. Ld. Assessing Officer had reason to believe that the cash deposits can be from unexplained sources of income. In my considered opinion, under given facts and circumstances, a valid notice u/s 148 of the Act was issued after getting prior approval from the competent authority because there was a valid information from the bank account about cash deposit, no return was filed by the assessee and no further information was given by the assessee in response to the letter dated 18.01.2018. I therefore dismiss the legal ground raised in ground no.4. 10. Now, coming to the merits of the case raised in ground nos.1 and 2 about the alleged addition for unexplained cash deposit of Rs. 16,23,000/-, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale consideration received by the assessee during the year from the business of trading in Cashew Seeds. So far as estimation of net profit is concerned, apart from placing the purchase and sale register, no other documents supporting the expenditure has been furnished and also the cash received has mostly being utilized either for purchase or for making payment to husband and purchase of immovable property. Therefore, certainly the margin of profit of the assessee is on much higher side as has been declared in the income tax return. In the absence of any details about opening and closing stock (if any) difference of purchase and sales as given by the assessee is Rs. 3,54,130/-. Though there are certain withdrawals during the year and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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