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2022 (11) TMI 906 - AT - Income TaxEstimation of net profit at the rate of 10% of sales - assessee during the assessment proceedings failed to furnish the documentary evidences for the expenses claimed in the return of income - HELD THAT:- From the preceding discussion, we note that the assessee has already declared an income at the rate of 9.34% in his return of income. Even under the provisions of section 44AD of the Act, the presumptive rate specified therein is 8% of the turnover whereas the assessee has declared income more than 8 percent. There was no basis provided by the authorities below for estimating the income at the rate of 10% of the turnover. Accordingly, we are not convinced with the finding of the learned CIT(A) and reverse the same with the direction to the AO delete the addition made by him. Hence, the ground of appeal of the assessee is allowed. Addition being the peak credit of the amount shown in the bank accounts - amount of cash deposits which is supported by the subsequent withdrawals - HELD THAT:- Admittedly the huge amount of cash was deposited and withdrawn from the bank account of the assessee. It is the onus upon the assessee to explain each and every transaction of the cash deposit and withdrawn. But the assessee failed to explain the same. It is also true that the entire amount of cash deposit cannot be treated as income of the assessee in a situation where there is a subsequent withdrawal and deposit in the bank account of the assessee. The amount withdrawn from the bank is available with the assessee for subsequent deposit in the bank account. In such facts and circumstances the Hon’ble Courts in series of cases has held that the peak amount lying in the bank account should be treated as income of the assessee. No infirmity in the order of the authorities below. Before parting, we note that the assessee has not given his working for the amount of the peak credit. Accordingly, in the interest of justice and fair play we are inclined to give one opportunity to the assessee to work out the peak-credit and provide the same to the AO. Ground of appeal of the assessee is allowed for the statistical purposes. Addition of low household withdrawals - HELD THAT:- It is the onus upon the assessee to furnish the necessary details as desired by the AO. From the preceding discussion we note that the assessee has not furnished the details of the family members Therefore the addition was made on account of low withdrawal of household expenses. However, we note that there is no basis of making the disallowance on ad-hoc basis. However in the interest of justice and fair play we restrict the disallowance to the tune of 25,000.00 only. Thus the ground of appeal of the assessee is partly allowed.
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