2021 (10) TMI 459 - AT - Income Tax

Unexplained cash credit u/s 68 - HELD THAT:- It is an admitted fact that the A.O. in the preceding as well as succeeding assessment years and also in the remand report for the impugned assessment year has mentioned that assessee is in the business of taxi operation. There is no other evidence before the A.O. that the assessee is engaged in any other activity other than taxi plying. Further the assessee is also not maintaining any books of account.

Since the assessee in the instant case is engaged in the business of taxi operation as per the preceding and succeeding assessment years and as per the remand report of the A.O. for the impugned assessment year and the assessee is not maintaining any books of account, therefore, the entire deposits in the bank accounts is the business receipt of the assessee from taxi operation. Since there is a difference of ₹ 40,41,371/- between the business receipt shown at ₹ 22,20,677/- and total deposit of ₹ 62,62,048/-, therefore, in my opinion, estimation of profit @ 25% of the total difference will meet the ends of justice. Grounds raised by the assessee are accordingly partly allowed.