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2014 (9) TMI 92 - HC - Income TaxEstimation of income @ 8% of total turnover - Entire deposits in bank account treated as total turnover - Undisclosed business of trading in art silk cloth – Onus to prove the source of credit entries on revenue or not - Whether the Tribunal was justified in accepting the amount as trading receipt of the assessee though the same was never proved by the assessee either at the time of assessment proceeding or appellate proceeding – Held that:- The Tribunal directed to treat the entire deposit made by the assessee in his bank account in cash - The working out pick credit and sustaining addition to the extent of pick credit would arise if it is established by the assessee that his undisclosed income is relatable to the trading in art silk cloth - When it has been found that the assessee has miserably failed to establish and prove that he was in the business of trading in art silk cloth and that the deposit made in cash in his bank account was with respect to his undisclosed business of trading in art silk cloth, there is no question of further making addition on the basis of estimation at 8% of the total turnover working out pick credit - there is no such discussion and/or the reasons assigned by the Tribunal on the directions that the income of the assessee shall be estimated at 8% of the total turnover - Even nothing is on record how and on what basis the Tribunal has even estimated the income at 8% of the total turnover – the order directing that the income of the assessee shall be estimated at 8% cannot be sustained – thus, the order of the CIT(A) in making addition in his total income of the assessee u/s 69A of the Act is restored – Decided in favour of Revenue.
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