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2020 (4) TMI 584 - ITAT SURATReopening of assessment u/s 147 - no return of income was filed within 30 days as provided in the notice under section 148 - cash deposits in saving bank account - HELD THAT:- As assessee has not filed return of income within statutory period of notice under section 148 of the Act hence, the assessee was debarred from taking objection to issue of jurisdiction, specifically when she has not complied with proceeding and not raised any objection to issue of notice under section 148 of the Act during the course of assessment proceedings. In view of these facts and circumstances, we uphold the reopening of assessment as valid and in accordance with law. In view of this matter, this ground of appeal is therefore, dismissed. Addition of cash deposit in bank account - HELD THAT:- Cash deposits are linked with business transaction of the assessee. Since the assessee has not maintained any books of accounts, hence, in such situation only net profit as per provisions of section 44AF of the Act is required to be estimated as net profit and not entire turnover or cash deposits reflected in the bank account. Following the ratio laid down in the case of CIT V. Pradeep Shantilal Patel [2013 (11) TMI 1646 - GUJARAT HIGH COURT] wherein it was held that where assessee admitted that cash deposits pertained to his retail business but details and nature of business were not forthcoming from record, considering total turnover of assessee, net income to be determined under section 44AF AO is directed to estimate net profit @ 5% of total turnover of ₹ 15,11,906 being cash deposits in bank account. - AO will allow set off the amount of ₹ 75,000 disclosed in her income-tax return. In other way, the set off and telescoping would be allowed of ₹ 75,000 disclosed in return of income and considered by the AO in assessment order. This grounds of appeal is therefore, partly allowed.
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