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2023 (12) TMI 30 - ITAT BANGALOREAddition u/s. 69A in the light of cash seized - estimation of sales of the assessee - assessee is trading in gold and silver from of jewellery, ornaments, utensils, bullion, etc. - application of section 115BBE - AO has computed the turnover incorporating the cash found and seized - HELD THAT:- We note that cash was seized by the Police Officer and statements were recorded by the ADIT(Inv.), Gulbarga in which the assessee stated that cash found was out of his own savings, family savings and loans. AO has extracted some of the sales bills and noted that in some of the bills name of purchaser is not noted, except the credit sales and in some bills, the date has not been mentioned. The AO has not pointed out any defect in the books of accounts of assessee except in some sales bills. AO has computed the turnover incorporating the cash found and seized AO has accepted the business income reported by the assessee on entire sales and on the other hand, out of sales reported by the assessee, the AO has considered sales as trading sales only on the basis of estimation made by him and the rest of the amount has been considered as unexplained money u/s. 69A of the Act, without rejecting the books of account of the assessee, which is not correct. Once the AO has accepted the returned income calculated on the basis of total turnover for the year, the same turnover cannot be treated as unexplained money u/s. 69A . It is interesting to note that the AO has also not applied section 145(3) of the Act. Accordingly, we hold that the entire sales reported by the assessee is the business sales of the assessee relying on the decision of Mahesh Kumar Gupta [2023 (3) TMI 1148 - ITAT JAIPUR] Therefore, section 69A will not apply in this case. Since we have held that entire sales is business sales of the assessee, therefore the other grounds raised in appeal and CO are not required to be adjudicated.
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