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2015 (12) TMI 1374 - ITAT AHMEDABADAddition u/s 69 for unexplained investment - Held that:- In the case under appeal also there has been no finding by the Assessing Officer about the defects of books of accounts as well as detection of undisclosed investment which may have been made by the assessee from the undisclosed sales. In these circumstances it will not be justifiable to impose GP @ 16.78% on the undisclosed turnover when separate additions has already been made for peak credit, cash deficit and payments towards capital nature of expenditure and as such Net Profit rate shown by the assessee on the disclosed turnover should be applied on the undisclosed credits of ₹ 25,64,264/- and by application of Net Profit rate of 4.8% on ₹ 25,64,264/- the sustained addition of ₹ 4,30,283/- will scale down to ₹ 1,24,110/-. In other words, assessee will get relief of ₹ 3,03,173/- and the total sustained addition of ₹ 8,39,832/- referred in ground no.1 will be reduced to ₹ 5,33,659/-. Addition on account of unexplained investment in FDI - Held that:- Assessee has accepted that the credits in the disclosed bank account were not shown in the books of account and did not put forth any proper explanation for these cash deposits in its account and further most of the withdrawals from this bank account have been made for payment to Kotak Securities Ltd. for share trading business. This means that flow of funds in this account was not at all related to the business of job of jari kasab done by the assessee and, therefore, the contention of the ld. AR for applying net profit rate on this amount of ₹ 2,25,977/- cannot be accepted and accordingly we are of the view that ld. CIT(A) has rightly confirmed this addition of unexplained investment in the hands of the assessee and as such this ground of the assessee is dismissed. Addition as unaccounted fixed deposits as income u/s 69 - Held that:- As during assessment proceedings Assessing Officer found that assessee had made investments in cash certificates in various banks in the form of Fixed Deports and these Fixed Deposits were jointly held by the assessee with either his father or mother or his wife and the photo of the assessee was appearing on these Fixed Deposits and these Fixed deposits were not reflected in the balance sheet of any of the other joint holders and therefore, this amount was added as unexplained investments. Even before ld. CIT(A) no evidence has been furnished by the assessee to show that he was not the actual beneficiary of the Fixed Deposits and was unable to prove that Fixed Deposits related to any other year and therefore, ld. CIT(A) did not give any relief to the assessee. Even before us also nothing contrary has been produced to prove that these Fixed Deposits relate to any other year or Fixed Deposits are not related to the assessee. Therefore, it seems that assessee has nothing to say more to substantiate its ground and in these circumstances, we dismiss this ground of assessee.
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