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2022 (9) TMI 69 - AT - Income TaxUnexplained cash deposits - difference in turnover as unexplained investments - net profit 8% be applied to the gross turnover instead of making addition of the whole of the gross receipts as income of the assessee - HELD THAT:- AO did not accept the contentions of the assessee by holding that the assessee failed to produce any evidence regarding his business activities and did not produce cash book day book etc. While holding so, the AO ignored the provisions of Section 44AD of the Act, which allows the assessee to calculate his income on the basis of turnover and which enables assessee not to maintain books of account. The reasons cited by AO that assessee had failed to file any evidence regarding his business activities is not a good reason as his return of income filed on the basis of same business has been accepted for making additions on account of cash deposits. AO has started with the returned income based on the basis of such business only. Therefore, we do not agree with the findings of AO - Since all the documents supporting the argument of the assessee are available in the file and case is very old which relates to AY 2014-15 there is no point in setting aside the matter to ld. CIT(A) who had passed an ex-parte order and has not decided the issue on merits. Therefore, on the basis of documents available on record, direct the Assessing Officer to calculate the income of the assessee by applying 8% N.P. rate on total deposits made by the assessee.
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