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2022 (8) TMI 80 - AT - Income TaxAddition made to the income of the assessee on account of cash deposit remaining unexplained - addition u/s. 69A in respect of cash deposits made by an appellant by treating it as unexplained money - HELD THAT:- Assessee still needs to substantiate his turnover with certain documentary evidences so that the correct estimation of his net profits by applying the rate specified under the section can be made. However in the peculiar facts of the case before us the assessee was asked to justify this fact after a lapse of six years in re-assessment proceedings. Considering the fact that he was a very small businessman, operating in unorganized sector, it was asking for too much to produce bills to substantiate his turnover in cash that too after a lapse of six years. In these peculiar facts and circumstances we are of the view that having accepted the fact that the assessee had conduced business to the tune of Rs. 20 lakhs odd which in all probability was conducted in cash and the department having found out no other source of income available with the assessee, the entire deposits in cash in the bank can be safely attributed to the business receipts of the assessee only. We may add that very small businessmen like the assessee for whom the law itself provides a convenient method for declaring their incomes by returning taxes on at a presumptive rate, thus doing away with the onerous requirement of maintaining books of account and other documents, noting that it acted as a detterent to such businessmen from declaring their income, the Revenue is expected to take a considerate and holistic view on such matters and not waste its efforts and energies in making such paltry additions. Addition on account of alleged unexplained cash deposit be deleted. Appeal of assessee allowed.
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