TMI Blog2019 (10) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No. 529/Ahd/2018-AY-2010-11 (Assessee s appeal) 4. The grounds of appeal raised by the assessee read as under: 1.00 RE-OPENING IS BAD IN LAW. 1.01 On the facts and circumstances of appellant's case as well as in law, the Hon'ble CIT (A) has erred in confirming erroneous action of Id AO of reopening of assessment proceedings as it lacks jurisdiction, re-opened without brining on record independent reason / satisfaction for reopening and mainly re-opened based on reason / satisfaction of third party. 1.02 Your appellant prays Your Honour to hold so now and treat the reopening as Bad in Law and set aside the assessment. 2.00 ADDI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings were undertaken under s.147 of the Act. In scrutiny assessment, pursuant to the exercise of powers under s.147 of the Act, it was held by the AO that various cash deposits were made in the assessee s bank account aggregating to ₹ 33,42,622/- remained unexplained. The AO accordingly made additions towards unexplained cash deposits in bank to the aforesaid extent. 8. In the first appeal before the CIT(A), the assessee submitted that transactions in the bank account pertained to his retail business (wheat). However, as the nature and details of business of the assessee were not explained, the CIT(A) refused to interfere with the order of the AO. 9. Further aggrieved, the assessee preferred appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the action of the Revenue in making additions towards aggregate amount of cash deposits while completely ignoring the simultaneous cash withdrawals is totally unjustified in the facts and circumstances of the case. The learned AR however submitted that the grievance of the assessee would be met if the provisions of Section 44AF of the Act is invoked as applicable to the persons engaged in retail trade in any goods or merchandise and the sum equal to 5% of the total turnover of such business be deemed to be profits and gains of such business. 11. The learned DR for the Revenue, on the other hand, relied upon the order of the lower authorities and submitted in furtherance that the assessee has failed to produce a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT vs. Pradeep Shantilal Patel (2014) 42 taxmann.com 2 (Guj) and CIT vs. Surinder Pal Anand (2011) 242 CTR 61 (P H). 13. As per the scheme of presumptive taxation provided under s.44AF of the Act, the estimated business income from aggregate cash deposits / turnover works out to ₹ 1,67,131/- by applying 5% thereon. The estimated income from the cash deposits in the bank is thus requires to be restricted to the aforesaid amount. The AO is directed to do so. 14. In the result, the appeal of the assessee for AY 2010-11 is partly allowed. ITA No. 40/Ahd/2019-AY-2009-10 (Assessee s appeal) 15. Identical matter with similar grievance of the assessee arising in AY 2009- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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