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2018 (8) TMI 1909 - AT - Income TaxAddition on account of cash deposits in bank account - HELD THAT:- We find that there are cash withdrawals of ₹ 9,92,000 from this bank account therefore; the entire cash deposits cannot be considered as undisclosed income of the assessee hence, benefit of cash withdrawal is required to be considered. Therefore, the claim of the assessee that the Gross Profit Rate of 5.57% disclosed in respect of proprietary concern of Naresh Silk Mill be applied to total cash deposits has also force therein. In view of this matter, we are of the considered opinion that net profit rate of 8% as per provisions of section 44AD would be reasonable to total cash deposits of ₹ 14,30,000 which worked out to ₹ 1,14,400 and consequently, this much addition being net profit of business is sustained, considering fact that this bank account stands disclosed from A.Y. 2006-07 and therefore, these cash depo sits could be linked to outside sales being carried out in the name of M/s. Naresh Silk Mill. Therefore, considering the entirety of facts and taking a holistic approach in the matter, we are of the considered view that addition of net profit at ₹ 1, 14,400 is upheld and balance addition of ₹ 13, 15,600 is deleted. - Appeal of the assessee is partly allowed.
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