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2014 (1) TMI 1638 - ITAT AGRADisallowance u/s 69 - unexplained cash deposit - Non maintenance of books of accounts - held that:- Assessee has declared total gross turnover of ₹ 25,56,850/- and in the absence of books of account, the AO estimated the total receipts at ₹ 30 lacs in the assessment order and did not accept the applicability of provisions of section 44AD of the IT Act being the nature of business of the assessee to be different. The AO directed to apply 10% profit rate and directed to make addition of ₹ 95,492/-. The AO similarly made addition of ₹ 16,94,500/- being the amount deposited in the bank account and since it was a larger amount, therefore, no addition on account of gross profit was made. These facts clearly show that the amount deposited in the bank account of the assessee was part of the total turnover, which was enhanced to ₹ 30 lacs from the turnover disclosed by the assessee in the absence of the production of books of account. The ld. CIT(A) was, therefore, justified in holding that the addition on account of unexplained bank deposits is unjustified and the addition on account of applying reasonable profit rate has to be made - No merit in appeal - Decided against Revenue.
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