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2023 (3) TMI 467 - AT - Income TaxUnexplained cash deposits in bank account - source of amount of credit in the assessee’s bank account stands unexplained - NP estimation - HELD THAT:- Admittedly, the assessee was carrying on the business of sale of milk. He had not been filing his returns of income since his income was below the taxable limit; and that this fact stands verified by the department during the course of his proceedings for AY2010-11. In that year, its case was also reopened u/s 148 of the Act for verification of cash deposits Rs. 20,96,973/- in its bank from his business of supplying of Milk where the addition made for Asstt. Year 2010-2011, by the AO, has been deleted by the Worthy CIT(A), on the basis of report of the Inspector that the assessee had been carrying on the business of sale of Milk by restricting to only 6% profit on the total bank deposits of Rs. 20,96,973/- being treated as Milk Business Turn Over under the provisions of Section 44AD. In the case of “Commissioner of Income Tax vs. Leader Valves Ltd.” [2007 (1) TMI 70 - HIGH COURT, PUNJAB AND HARYANA] observed that in view the principle of consistency, the Revenue could not be permitted to raise an issue in isolation only for one year in the case of one assessee, while accepting the findings on the same issue in the case of other assesses and for other years in the case of assessee. The department cannot be permitted to raise an issue in isolation only for immediately succeeding on identical facts in the case of the same assessee. Thus, the source of amount of credit in the assessee’s bank account stands explained as milk sale Turn Over for the Assessment Year under consideration. As per provisions of section 44AD of the Act, the AO is directed to apply 8% Net profit on the total milk sale of worth. Appeal of the assessee is allowed
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