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2021 (11) TMI 87 - ITAT HYDERABADLimited scrutiny or limited scrutiny - HELD THAT:- After vehemently arguing for some time, learned counsel stated very fairly that the assessee no more wishes to press for the instant additional ground(s) as it emerged from a perusal of the case file that it was indeed a case of complete scrutiny assessment only. Estimating 10% of her sub-contract receipts as her business income - HELD THAT:- As assessee has been assessed at very high rate of 10% deposits the fact that she is only a sub-contractor wherein the margin does not cross maximum rate of 3 to 4% - no merit in the assessee's instant arguments since both the lower authorities have already granted her substantive relief in estimating the impugned profit element @10% despite the fact that she has not maintained any books, details of sub-contracts (project-wise) corresponding and all other overhead expenses. We sought to know from the learned counsel about the assessee's alleged regular business activity in civil construction business wherein he failed to throw any light. We therefore hold that the assessee does not deserve any further relief over and above the impugned profit estimation @10%. Disallowing bad debts, interest expenses followed by un-explained cash credits - HELD THAT:- When there is no indication in the case file regarding the learned lower authorities to have specifically issued any show cause notice regarding verification of the instant twin claims of bad debts interest disallowances, we deem it appropriate to restore the same back to the Assessing Officer for his afresh adjudication as per law within three effective opportunities of hearing. Un-explained cash credits - HELD THAT:- Assessee during the course of hearing that assessee had not only submitted the list of the creditor parties but also their confirmations before the Assessing Officer and the sums in issue had come from the banking channel only. There can hardly be any dispute that it is the assessee's onus only to prove identity, genuineness and creditworthiness of such cash credits wherein she cannot simply take recourse to filing list thereof followed by mechanical confirmations. We therefore deem it appropriate to restore the install issue as well back to the Assessing Officer with a clear-cut direction that it shall be the bounden duty/risk of the assessee only to produce the corresponding parties in issue; as and when required to do so, in consequential proceedings within three effective opportunities of hearing in order to prove their genuineness and creditworthiness. The instant last substantive ground is accepted for statistical purposes in above terms.
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