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2016 (5) TMI 466 - AT - Income TaxTurnover estimation - Application of 10.55% net profit rate on the total turnover shown in the bank account - whether the impugned bank account was actually used for running of textile business or running of cheque discounting business? - Held that:- CIT(A) has rightly observed that the transactions in the bank account do not pertain to the cheque discounting business being carried out by the appellant; as we also find that assessee is maintaining a considerable bank balance in this bank account and, therefore, in the given circumstances, we cannot believe that assessee was carrying on cheque discounting business through this account. In the given circumstances, when appellant is unable to prove that he has conducted cheque discounting business and that too in a bank account which was not in his name and the same was revealed during survey proceedings, we are of the view that ld. CIT(A) has rightly sustained the addition by applying 10.55% net profit rate on the total turnover shown at ₹ 18,75,554/- in the bank account operated by assessee - Decided against assessee.
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