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2017 (12) TMI 1136 - AT - Income TaxAddition made on account of cash found deposited in the bank which remained unexplained - Held that:- The cash deposited in the bank having been explained as being made out of various sources as held above in the earlier part of our order and out of the receipt from the property dealing business, the cash deposited in the bank stands completely explained. There is no reason, therefore, to make any other addition in the case of the assessee that the investment made in the property dealing business can be attributed to the withdrawals made in cash or by cheque as reflected in the bank account of the assessee. In view of the same, we delete the addition made by estimating the undisclosed investment in the business @ 10% of the turnover. In effect we uphold the order of the CIT(A) to the extent that the cash deposited in the same is attributable to the business of property dealing of the assessee and therefore dismiss the Revenues appeal challenging this action of the CIT(A). But at the same time we restrict the quantum of deposits attributable to the business to ₹ 83,17,700/- as against ₹ 89,57,700/- held by the CIT(A) and as a consequence thereof restrict the addition on account of Net profit earned thereon to ₹ 12,47,655/- as against ₹ 13,49,566/- held by the CIT(A). Further we direct that the addition made on account of undisclosed investment in the business of ₹ 8,99,700/- be deleted. Appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed.
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