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2021 (11) TMI 53 - ITAT GAUHATICIT(A) enhancing the total income by exercising his powers u/s 251 - addition u/s 68 - income from plying of mini truck - Gp estimation - HELD THAT:- We note that the assessee’s case is that he is into the business of potato/onion/grocery and has offered presumptive tax u/s 44AE of the Act since he is not maintaining any books of accounts. According to the assessee, he has gross receipt from this business to the tune of ₹ 18,17,625/- and therefore he has offered presumptive tax of ₹ 1,45,410/- which is 12.5% of the gross receipt. This income of the assessee from potato/onion/grocery need to be accepted since it has been brought to our notice that the assessee has been consistently assessed in the earlier assessment years also the income from this business and therefore the same to be accepted from this business Income from plying of mini truck - As action of the authorities below not to accept the genuinety of gross receipt from freight from a mini truck is a plausible view. CIT(A) for want of any proof in respect of the credit entry in the bank account has made addition u/s 68 of the Act without giving any consideration to the debit/withdrawal of the money. So the action of the Ld. CIT(A) on this score cannot be per-se countenanced. And it is equally interesting to note that both AO/Ld. CIT(A) has accepted the presumptive tax from mini truck offered by assessee u/s 44AE of the Act which means the authorities below has accepted that the assessee is in to the business of plying vehicle and eligible for adopting presumptive tax u/s 44AE of the Act which action we also concur/confirm. Therefore we order accordingly. Cash deposits in the assessee’s bank account as depicted in the chart given by the AO - It goes without saying that when there is cash deposits in his account, he is duty bound to explain the nature and source of the deposits in it during the proceedings before the AO. Be that as it may be, reasonable estimation of the income of the assessee need to be made on the cash deposit/withdrawal made in the assessee’s bank account. Therefore, we set aside the order of the Ld. CIT(A) and remand to the AO for estimation of income in respect of the sums deposited. For that the AO to consider the withdrawn amount also and after allocation of reasonable gross receipt from the mini-truck and taking in to consideration from grocery, reasonable estimation of income to be computed in accordance to law - we set aside the impugned order of the CIT(A) and remand the matter back for the limited purpose as afore-stated. The assessee is directed to file written submission/documents to substantiate his claim and the AO to give an opportunity of hearing if the assessee avails for it. Appeal of the assessee is partly allowed for statistical purposes
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