Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 684 - AT - Income TaxValidity of Best Judgement assessment u/s 144 - GP rate estimation - unexplained bank deposits - HELD THAT:- AO offered sufficient opportunity to the assessee issuing notices u/s. 142(1) and 143(2) of the Act, which were duly served upon the assessee. This fact has not been controverted by the assessee. Under these given circumstances, the ld. AO was justified in framing the best judgment assessment u/s. 144 of the Act. Ground no.1 raised by the assessee is dismissed. Addition @ 8% on the turnover not declared by the assessee - On going through the observations of the ld. AO in the assessment order, we find that the assessee has declared net profit at Rs. 2,92,780/- on turnover of Rs.19,73,155/-. The assessee declared net profit rate @ 14.80% approx - as based on the information received by the ld. AO, it was revealed that the assessee was operating 12 bank accounts and total amount deposited during the year under consideration is Rs. 95,65,429/-. The turnover shown by the assessee is only Rs.19,73,155/- and remaining amount Rs.75,92,274/- is suppressed turnover, not declared by the assessee in the return. We also find that the ld. AO has fairly applied net profit @ 8% on the total amount deposited in the bank accounts at Rs.95,65,429/- treating it as turnover and calculating net profit at Rs. 7,65,234/- and after giving benefit of income of Rs. 2,92,780/- declared by the assessee remaining amount of Rs.4,72,454/- has been added. In our view, this finding of the ld. AO stands rightly confirmed by the ld. CIT(A). We, thus, find no infirmity in finding of the ld. CIT(A). Therefore, ground no. 2 raised by the assessee is dismissed. Addition of interest income - As the assessee could not controvert this fact that Rs.87,749/- was appearing in the interest received by the assessee in 26AS statement on which tax of Rs.9077/- was deposited is not offered for taxation in the I.T return. CIT(A) has rightly confirmed the impugned addition of Rs.87,749/- made by the ld. AO for interest income not disclosed by the assessee. Ground no. 3 raised by the assessee is dismissed.
|