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2023 (7) TMI 132 - AT - Income TaxEstimation of income - applying commission @ 8% of total cash deposit - Non rejecting books of account - HELD THAT:- As the assessee has proved the fact that he is engaged in business of recharge of prepaid coupons of Idea Cellular Limited in the name of Vatshal Enterprises. The assessee has also placed on record the TDS certificate in the form of 26AS wherein total tax is deducted at source. There is no dispute about business of assessee. The assessee furnished complete books of account. The books of account of assessee was not rejected. The nature of business of assessee is also not doubted. The ld. CIT(A) directed the AO to estimate the income in respect of cash deposit between 01/06/2016 to 22/12/2016, which is already offered by assessee by including its commission income in his commission received @ 2% in his return of income. CIT(A) directed the Assessing Officer to estimate the commission without any basis. If the direction of ld. CIT(A) is followed, it would amount to double taxation of the same income. The Hon'ble Madras High Court in PCIT Vs. Marg Ltd. [2017 (7) TMI 823 - MADRAS HIGH COURT] held that profit of assessee cannot be estimated without rejecting its books of account. Thus no justification in the direction of ld. CIT(A) to further estimate the income on the deposits between 01/06/2016 to 22/12/2016 which is not in consonance with the decision in PCIT Vs Marg Limited (supra). Even otherwise, the assessee has already included his commission income while filing return of income. In view of aforesaid discussion, the grounds of appeal raised by assessee are allowed.
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