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2016 (12) TMI 738 - AT - Income TaxUndisclosed cash deposits - Held that:- On perusal of the Bank statements and narration in those bank statements, it is noticed that the purchases of the assessee was through cheque which establishes the trading business of the assessee. It is further noticed that assessee had furnished the sales accounts, purchase accounts and cash flow statements, bank A/c etc before the authorities below. It is further noted that the assessee is a retail trader and the assessee is not required to maintain books of account as per provision of Section 44AF and the case of the assessee fall u/s 44AF of the Act. As noted that in the case of ITO Kishangarh vs. Sh. Pushpendra Kumar Jain (2016 (1) TMI 1190 - ITAT JAIPUR), the ITAT Jaipur Bench had treated the cash deposit in the bank account of the assessee as undisclosed turnover of the assessee and directed to apply the gross profit rate @10%. Thus taking into consideration all relevant facts and also the decision of Coordinate Bench in the case of ITO Kishangarh vs. Sh. Pushpendra Kumar Jain (supra), the AO is directed to estimate the net income of assessee @ 10% on the turnover of ₹ 23.05 lacs. Thus the appeal of the assessee is partly allowed.
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