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2023 (2) TMI 804 - AT - Income TaxRevision u/s 263 - Unexplained cash deposits - HELD THAT:- Merely because, the assessee has not produced the confirmation from other debtors, it does not mean that entire sales were not made to these debtors - we are of the considered view that the nature of business of kirana merchants, who is engaged in the sale of vegetables, dry fish and groceries are mostly by way of cash, wherein, AO has not disputed the fact of cash deposits in the assessee’s bank account. In the absence of any dispute regarding the cash deposits are arising out of the cash sales by the AO in the original assessment and in the absence of any contrary findings by the Ld.AO, cash deposits cannot be treated as unexplained. Wife of the assessee is also a regular filer of income tax returns who has paid to the assessee, as per findings of Ld.CIT(A). Considering peculiarity of the trade in which the assessee is engaged, we find that the assessee has source for the cash deposits made for the purpose of investment in residential property. Additions cannot be made merely based on assumptions by the revenue authorities. We, therefore allow this ground raised by the assessee. Estimation of profit at 3.5% of the turnover - We are not inclined to intervene in the decision of the Ld.CIT(A) on this ground. Hence, this ground raised by the assessee is dismissed.
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