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2021 (4) TMI 451 - AT - Income TaxUndisclosed business turnover - Addition as income u/s.44AD - estimating 15% of the excess cash deposits - As per assessee cash deposits were made out of earlier cash withdrawals from the bank account and hence, the same cannot be regarded as undisclosed business turnover - HELD THAT:- Assessee deposited ₹ 111.06 lakhs into bank account. Assessee gave a list of persons from whom cash has been received to the tune of ₹ 74,29,800/-. The assessee has claimed before the lower authority that earlier cash deposit was available to assessee to redeposit into account. Therefore, it is the duty of the assessee to establish that earlier cash was not spent by the assessee and is kept with him to redeposit it into bank account. In the absence of such evidence to show that the assessee kept the earlier cash withdrawals with him as idle, it is not possible to give any benefit of earlier withdrawals as available to assessee to redeposit into bank account. Accordingly, this ground of appeal is dismissed. Addition beyond the matter for which he has selected for limited scrutiny - Estimating the income at 15% of cheque deposit to bank account - contention of the AR is that the assessee received cheque from the prospective customers and the same was deposited into bank account and it cannot be treated as income of the assessee - HELD THAT:- Whenever assessee deposits money into bank, it is the duty of the assessee to furnish the name, address and PAN to show that it is towards the advance received from the customers. In this case, the assessee failed to establish the identity of the parties from whom it has been received. Being so, the AO having no alternative, has estimated the income at 15% as offered by the assessee in its return of income. We do not find any infirmity in this action of the lower authority. The assessee made one more plea by way of additional ground that the AO cannot extend the limited scrutiny towards the estimation of income on cheque deposited in bank account In the present case, the tax liability on the impugned issue is less than ₹ 10 lakhs. Being so, the AO is within jurisdiction to take up the issue relating to cheque deposit into bank account. Accordingly, in the result this ground as well as additional ground is dismissed. Appeal of the assessee is dismissed.
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