TMI Blog2022 (10) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... g the nature of transactions reflected in the bank account of the assessee to show that the credits reflected in the said bank account did not entirely represent the sales of the assessee as claimed by him. He has also not furnished any details or evidence to show that the net profit rate of 8% applied by the authorities below estimating the income of the assessee from the undisclosed turnover is excessive or unreasonable. Keeping in view all the facts of the case, we do not find any justifiable reason to interfere with the impugned order of the learned CIT(A) on this issue and upholding the same, we dismiss Ground No.1 of the assessee s appeal. Addition u/s 40A(3) - payments exceeding cash of Rs.20,000/- as reflected in the bank account of the assessee with ICICI Bank were made against the purchases - HELD THAT:- Since the said purchases were pertaining to the undisclosed business transactions of the assessee as held by the authorities below and profit of the said undisclosed business transactions was estimated by them by applying a net profit rate, we find merit in the contention of the learned Counsel for the assessee that the same purchases cannot be disallowed separately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under Section 148 of the Income-tax Act, 1961 ( the Act in short) was issued by him to the assessee on 30.03.2017 after recording the reasons. In response to the notice under Section 148 of the Act, a letter was filed by the assessee stating that the return filed by her originally on 26.07.2010 may be treated as the return filed in response to notice under Section 148 of the Act. During the course of assessment proceedings, the assessee was called upon by the Assessing Officer to explain the total credits of Rs.3,09,77,311/- appearing in her bank account maintained with ICICI Bank, Bhavnagar which had not been disclosed in the return of income. In reply, it was submitted by the assessee that the said credit entries represented sale proceeds of her business made on consignment basis while the debit entries reflected in the said account were payments made against purchases. It was submitted that the profit margin of the consignment business was very low and keeping in view the nature of the business, the resultant loss of Rs.31,820/- was debited to the Profit Loss account without showing the corresponding purchases and sales. The Assessing Officer did not find this explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r considering all facts and circumstances of the case I am inclined to partly agree with the contention of the appellant. It is seen that the contention of the appellant regarding balance in ICICI Bank account having been included in Sundry Debtors' is found to be correct. Though no details of the above bank account are mentioned in the relevant column of ITR asking for bank details but it is seen that as per the Balance Sheet as on 31/03/2010, balance in the ICICI Bank account is Rs. 7,79,696/-. It is further seen that this amount has been included in the amount of Sundry Debtors' shown at Rs. 25,96,082/- shown in column. 3(a)(ii) of Schedule Part ABalance Sheet.' Thus, it is held that the A.O was not justified in rejecting books of accounts of the appellant on the ground that the above bank account was not shown in the return of income. Hence, action of the AO in rejecting books of accounts of the appellant is not upheld. However, it is seen that the A.O has mentioned that total receipts credited to the above account are Rs.3,09,77,311/- and that total sales in this account come to Rs. 3,00,35,190/-. It is seen that the appellant has shown total sales of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled to show that the case of the appellant was covered by Rule 6DD(j) of the Rules and that she had to make payments in cash due to business exigency. Case laws relied on by the appellant are not applicable to the present case as the same are distinguished on facts. In view of the above discussion, it is held that the A.O was justified in making addition of Rs. 40,89,100/- u/s 40A(3) of the Act. Accordingly, addition of Rs. 40,89,100/- is upheld. 6. Aggrieved by the order of the learned CIT(A), the assessee has preferred this appeal before the Tribunal. 7. We have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that even though the balance with ICICI Bank, Bhavnagar was inadvertently shown by the assessee in the balance-sheet under the head Sundry Debtors as pointed out by the learned Counsel for the assessee, the transactions reflected therein representing purchase and sales of the assessee s business were not properly reflected in the books of account of the assessee as found by the authorities below. At the time of hearing before us, the learned Counsel for the assessee has not been able to bring anythi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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