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2012 (7) TMI 549 - AT - Income TaxAddition u/s 69 of the IT Act on account of bank deposits - Assessing Officer noticed that the assessee had deposited cash of Rs. 23,89,500/- in the Saving Bank Account - Commissioner of Income Tax(Appeals) treated the amount deposited in the bank as undisclosed business deposits and thereby directed the Assessing Officer to determine the profit of the assessee @ 10% of the deposits – Held that:- Assessee by producing the material has demonstrated that these receipts in the bank account of the assessee are relating to its activity of real estate and for the purpose of purchasing the plot and then again returned the amount to the parties - activity of real estate is not in the nature of civil contract and therefore, provisions of sec 44AD are not applicable so far as the deposits in the bank account - receipt in the bank account are in relation to the business activity of the assessee - CIT(A) is just and proper in estimating the profit of the said activity at 10% of the deposits pertaining to the year under consideration
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