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2019 (10) TMI 346 - AT - Income TaxAddition u/s 68/69A treating the cash deposits as unexplained cash credit - whether deposits in the bank account of the assessee can be recorded as trading asset or whether such deposits are to be recorded as the income from unexplained source u/s 68/69? - HELD THAT:- While total deposit in cash was found to be ₹ 33,42,622/-, there is simultaneous withdrawal to the extent of ₹ 30,50,000/- during the year. The cash book filed by the assessee showing day-to-day generation of cash and deposits thereof also makes it clear that the assessee is engaged in systematic activity of retail business. The withdrawal of similar amount of cash substantiates the claim of the assessee to be engaged in retail business to a great extent. Coupled with this, the claim of the assessee also gains support from the statement recorded by the Investigation Wing u/s 132(4). The assessee has also supported its claim of being engaged in retail business by month-wise summary of retail transactions showing quantity and value. We are inclined to accept the cash deposit to be arising and attributable to retail trade. This being so and in view of the averments made on behalf of the assessee, the business income from retail trade may be estimated by invoking Section 44AF of the Act. Similar view has been echoed in CIT vs. Pradeep Shantilal Patel [2013 (11) TMI 1646 - GUJARAT HIGH COURT] and CIT vs. Surinder Pal Anand [2010 (6) TMI 404 - PUNJAB AND HARYANA HIGH COURT] As per the scheme of presumptive taxation provided u/s 44AF the estimated business income from aggregate cash deposits / turnover works by applying 5% thereon. The estimated income from the cash deposits in the bank is thus requires to be restricted to the aforesaid amount. AO is directed to do so
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