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2014 (3) TMI 627 - ITAT AGRAAddition made u/s 69 of the Act – Held that:- Meager opening and closing balance shown in the bank account clearly prove that money so deposited in the bank account were only the sale proceeds of goods sold by the assessee against whom periodically and consistently payments have been made to the traders through banking channel - the amounts deposited in the bank account should not have been treated as unexplained investment in the bank account of the assessee. The amount deposited in the bank account was in fact sale proceeds of the goods, which were sold by the assessee from time to time against whom the assessee issued cheques to various dealers and earned commission – thus, the addition u/s. 69 of the IT Act is wholly unwarranted and unjustified in the case of the assessee – the total deposits in the bank account are the sale proceeds of the assessee, the profit rate should have been applied instead of considering the entire sales of income of the assessee – Relying upon Commissioner of Income-Tax Versus President Industries [1999 (4) TMI 8 - GUJARAT High Court] - Since the total deposit being the total sales of the assessee are only Rs.31,62,300/-, thus, the turnover of the assessee did not exceed the amount of Rs.40,00,000/- and as such, the provisions of section 40AF of the Act would apply in the case of assessee for the purpose of computing the profit and gains of retail business, which provides that sum equal to 5% of the total turnover in the previous year on account of such business shall be deemed to be the profit and gains of such business – Decided partly in favour of Assessee.
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