Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 329 - AT - Income TaxCash deposits in bank account as unexplained cash deposits - cash deposits pertained to assessee's retail business - facts proved that cash deposits are out of sale proceeds of textile trading. - HELD THAT:- The perusal of assessment order reveals that the assessee has not filed any details before the AO. Before CIT (A) the claim was made that the cash deposits in bank account pertained to textile business carried out by the assessee, though no books of accounts were maintained nor the bank account were disclosed in return of income. As discernible from bank account that cash deposits were made for various out stations like Delhi and UP. The bank account also reflects payments made to textile concerns. Therefore, it is clearly apparent that cash deposits are linked with business transaction of the assessee. Since the assessee has not maintained any books of accounts, hence, in such situation only net profit as per provisions of section 44AD is required to be estimated as net profit and not entire turnover or cash deposits reflected in the bank account. Following the ratio laid down in the case of CIT V. Pradeep Shantilal Patel [2013 (11) TMI 1646 - GUJARAT HIGH COURT] wherein it was held that where assessee admitted that cash deposits pertained to his retail business but details and nature of business were not forthcoming from record, considering total turnover of assessee, net income to be determined under section 44AD of the Act, the AO is directed to estimate net profit @ 8% of total turnover of ₹ 53,32,345 being cash deposits in bank account. - Decided partly in favour of assessee.
|