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2017 (7) TMI 655 - AT - Income TaxAddition applying net profit rate of 12% instead of 8% on the gross receipts as declared by the assessee - Held that:- Application of net profit rate of 12% for the purpose of estimating business income of the assessee. It is admitted fact that assessee did not maintain any books of account and any detail to show as to how the business income have been computed. The issue is, therefore, covered against the assessee on identical facts by order of ITAT Chandigarh Bench in the case of the same assessee. Addition of cash deposits - Held that:- As proved by the assessee on record that assessee has made cash withdrawals during the year under consideration from various banks in a sum of ₹ 7.65 Cr and made re deposit of cash of ₹ 4.30 Cr in the same year out of such cash withdrawals. Thus, assessee proved that assessee was having availability of the cash for re deposit in other bank accounts. The Assessing Officer has not brought any evidence on record to prove that assessee has spent the amount of withdrawn of cash somewhere else. Therefore, in the absence of any adverse material against the assessee on record, authorities below should not have rejected the explanation of the assessee. The onus upon revenue has not been discharged in any manner. Authorities below were not justified in considering the re-deposit of cash of ₹ 3.13 Cr as unexplained cash deposit. Therefore, set aside the impugned orders and delete the addition of ₹ 3.13 Cr in assessment year 2009-10. In assessment year 2010-11, the Assessing Officer made identical addition of ₹ 2,03,99,700/-. It is admitted fact that in this year, cash deposits were of ₹ 4,20,83,700/- against cash withdrawals of ₹ 7,60,15,550/-. This issue is admittedly same as have been considered in preceding assessment year 2009-10, therefore, following reasons for decision for assessment year 2009-10, we set aside the orders of authorities below and delete the entire addition. - Decided in favour of assessee and against revenue.
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