TMI Blog2014 (3) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... cularly when the account statement states the names of the parties to whom the payments are made, which could have been subject to verification, i.e., in case of doubt, by the Revenue - it is much considered as a part of the assessee’s business as any other – thus, treating the entire cash deposits as arising from the sale proceeds of his business, as claimed by the assessee - the profit element therein at 16% - also, taking the operating cycle as one month, 1/12 of 84% of the turnover in the said account would be a fair estimate - The addition u/s.69A is confirmed to that extent – Decided partly in favour of Assessee. - I.T.A. No. 779/Mum/2012 - - - Dated:- 14-3-2014 - Shri Sanjay Arora, AM And Shri Amit Shukla, JM,JJ. For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Rs.53.19 lacs (Rs.89,20,008 Rs.36,01,336) was brought to tax in the sum of Rs.8,50,986/-, i.e., at the disclosed gross profit rate of 16%. Further, the assessee s saving bank account with Oriental Bank of Commerce ( OBC for short), again, revealed cash deposits at Rs.16.67 lacs during the year. The assessee not furnishing any explanation in respect thereof; having in fact not disclosed the said bank account, the entire cash deposits stood assessed as income from undisclosed sources u/s.69A. The ld. CIT(A) confirmed the same, even as the assessee furnished another profit and loss account along with the audit report thereon, disclosing sales at Rs.262.79 lacs with a gross profit rate of 6.8%. The assessee s request for a fresh verific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In fact, no material to the contrary has been led by the assessee at any stage. No improvement in its case being made before us, we confirm the same. 4.2 With regard to the second addition, a perusal of the bank account with OBC (PB pgs.51-74) exhibits credits by way of cash sales and withdrawals by way of payments to, in the main, creditors for purchases. Why, therefore, we are unable to see, could the said account be not similarly regarded as an undisclosed bank account of the assessee s business? Merely because the said account is a savings bank account is not determinative of the matter, more particularly when the account statement states the names of the parties to whom the payments are made, which could have been subject to verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of addition qua the peak amount in the account (at any given point of time during the year), which would obtain no longer in view of our having accepted the cash deposits in account as representing his business turnover. The additions sustained by us are in respect of, firstly, the profit arising during the year on the undisclosed turnover and, two, the capital that could reasonably be considered as employed therefor, i.e., a part of the undisclosed business (as, in fact, routed through one account only), so that no case for their telescoping thus arises in the facts and circumstances of the case. We decide accordingly. 5. In the result, the assessee s appeal is partly allowed. Order pronounced in the open court on March 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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