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2019 (8) TMI 1636 - ITAT BANGALOREUnexplained cash deposits - appellant claims that these are deposits made from withdrawals of a firm called Aerolax Agro which is possessing agricultural lands and earning agricultural income - HELD THAT:- CIT(A) has held that only an Agriculturist can own agricultural land and a firm cannot own one - income earned from prosecuting agricultural activities can be held to be Agricultural Income only in the hands of the owner of the land and is business income in the hands of a non agriculturist. CIT(A) has further held that since land in question is shown to be possessed by the firm, it is clear that assessee is not the owner and those lands are situated in the State of Karnataka. Under these facts, it was held by ld. CIT(A) that explanation of assessee regarding source of cash is not accepted and we find no infirmity in this finding of ld. CIT(A) Unexplained expenditure - HELD THAT:- A categorical finding is given by ld. CIT(A) that the assessee had not been able to demonstrate that these expenses stands explained and therefore, he confirmed the addition. We find no infirmity in the order of ld. CIT(A) on this issue also. Undisclosed professional receipts - HELD THAT:- The appellant has not been able to explain the same satisfactorily. The appellant claims that the sum of ₹ 4,80,000/- offered to tax as Business Income is nothing but this professional income offered to tax on an estimated basis @8% of the gross receipts of ₹ 60,00,000/-. This is contrary to fact since, in its computation of income, Profit of ₹ 4,80,000/- is shown as Profit as per P&L a/c and after adding a sum of ₹ 90,000/- towards 'Any income not included in P&L a/c any expenses not allowable' an amount of ₹ 5,70,000/- was offered to tax. This clearly shows that the same is not on an estimate basis. The appellant's claim made now that ₹ 4,80,000 is estimated @ 8% of ₹ 60,00,000/- is thus an after thought. Therefore, in view of these facts, addition made by the AO is hereby confirmed. - Decided against assessee.
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