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2017 (1) TMI 862 - AT - Income TaxNet profit estimation - Income estimation - additional evidence submitted - Held that:- The assessee has brought on record the additional evidence after a lapse of 2½ years. The additional evidence submitted before us could have been submitted before the AO to substantiate his claim, so that the department could have initiated proper proceeding in the case of Sri. S. Venkateswara Rao. At this juncture, we find inappropriate to consider the additional evidence filed by the assessee before us and, accordingly, we reject the additional evidence filed by the assessee. Coming to the alternate submissions of the AR of the assessee, we agree that only the income should be brought to tax and not the credits in the bank account. Considering the transactions in the bank account, there are receipts as well as payments taken place, hence, it can be treated as business transactions and only the net profit alone can be brought to tax as held in various decisions of the Courts. Accordingly, we direct the AO to estimate the profit on the gross receipts @ 8% or the profit %age as declared by the assessee in his own business for the AY under consideration, whichever is higher. Accordingly, the grounds raised in this regard by the assessee are treated as allowed for statistical purposes.
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