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TMI Blog2014 (1) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 12,35,262/- to Rs. 12,245/- made by the AO on account of undisclosed cash deposits in bank account namely with the IDBI which was not at all disclosed & was found out by the AO. 2. Deleting addition of Rs. 10,000/- under the head income from other sources despite the fact that no documentary evidences were produced by the assessee before the AO." 2 Facts of the case in brief are that the assessee filed his return of income on 30/03/2009 declaring an income of Rs. 1,04,200/- which was processed under section 143(1) of the I.T. Act, 1961 (hereinafter referred to as 'the Act' in short) on 18/05/2009. Later on case was selected for scrutiny. During the course of assessment proceedings, the Assessing Officer obtained bank account statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of the purchaser / buyer located at Mumbai, Thane, Hyderabad, Kanpur, etc. purchased material from the local marble trading/ gang saw unit as per the requirement of the customer. The bill was prepared directly in the name of the buyer/purchaser. Generally the payment has been directly made to the trader/ gang saw unit by the customer, sometimes the assessee receives payment in his bank a/c and in turn he paid to the trader/marble units. The assessee charged approximately Rs. 1 to Rs. 2 per square feet for his services and was filing his ITR declaring this income regularly. During the course of assessment the assessee has fully explained the nature of such cash & cheques deposited in his bank a/c with lDBl by the customers located in di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the addition made by the AO is arbitrary without any basis and against- natural justice being made without allowing any opportunity of being heard." 4. The learned CIT(A), after considering the submissions of the assessee, observed that the Assessing Officer asked the questions to the assessee regarding the cash deposits and about the peak cash of Rs. 1,26,861/- involved in the unaccounted sales and in reply, the assessee had admitted that the cash deposits were related to marble trading done by him and regarding the peak cash he had replied that the same was related with an investment made in the earlier years. Ld. CIT(A) further observed that the Assessing Officer on the basis of statements taken had passed the assessment order, in w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sit in the bank account was that the said amount was received from purchasers/buyers located at various places like Mumbai, Thane, Hyderabad, Kanpur etc. He also explained that he was supplying marble on commission basis. The said explanation of the assessee was not rebutted, therefore, we are of the view that the Assessing Officer was not justified in treating the total deposits in the bank account of the assessee as his undisclosed income and the Ld. CIT(A) rightly worked out the income by applying the net profit rate on the total receipts relating to the business of the assessee. In our opinion, Ld. CIT(A) was justified in sustaining the addition of Rs. 12,245/- because the assessee had declared only an income of Rs. 80,400/- from his bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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