TMI Blog2016 (7) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... ition towards cash deposits made by the assessee in the Savings Bank Account - Held that:- . We find that both the parties have agreed for setting aside of this issue to the file of the Learned AO. We accordingly direct the Learned AO to compare the turnover disclosed by the assessee in its regular books and in the returns and compare the same with the cash deposits made in the bank account with Axis Bank. If the turnover disclosed is more than the cash deposits with Axis Bank, then no addition need to be made. If the turnover disclosed is less than the cash deposits, then the profit percentage on the difference amount is to be estimated and taxed accordingly. Hence the grounds raised by the assessee are allowed for statistical purposes. - I.T.A Nos.2217 & 2218/Kol/2013 - - - Dated:- 8-6-2016 - Shri N. V. Vasudevan, JM Shri M. Balaganesh, AM For The Appellant : Shri M. D. Shah, AR For The Respondent : Shri Debasish Lahiri, JCIT, Sr. DR ORDER Per Shri M. Balaganesh, AM: These appeals by assessee are arising out of separate orders of CIT(A)-XXXII, Kolkata vide Appeal Nos. 84 152/XXXII/10-11/49(1)/Kol dated 18.10.2012. Assessments were framed by ITO, W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proceeds as well as redeposit from withdrawals made earlier. The Learned AO found that no evidence was produced by the assessee for redeposit and hence the Learned AO treated the entire credits in bank accounts as derived from sale proceeds of the assessee. The Learned AO further observed that the assessee has shown sundry debtors of ₹ 2,66,907/- as no evidence was filed by the assessee to prove that the same are sundry debtors. The Learned AO treated the entire transactions as turnover of the assessee to the tune of ₹ 1,10,12,707/- (67,85,600 + 39,60,200 + 2,66,907) and the Learned AO determined the undisclosed turnover at ₹ 71,90,737/- after reducing the disclosed turnover in the books of ₹ 38,21,970/-. He applied the profit percentage offered by the assessee at 8.09% on the undisclosed turnover and brought to tax a sum of ₹ 5,81,730/- (71,90,737*8.09%) as income from undisclosed business of the assessee. The Learned AO however allowed the payment of interest on cash credit to State Bank of India amounting to ₹ 3,92,483/- as deduction. 3.1. The Learned AO obtained the ledger copy from the supplier of cements of the assessee M/s Ultratech Ceme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at ₹ 3,50,000/- and ₹ 4,50,000/- respectively. Since the assessee could not reconcile the difference in the balances of sundry creditors, the Learned AO brought the difference in closing balance of ₹ 4,39,945/- to tax as income from undisclosed sources. 3.6. The Learned AO also observed that going by the family size of the assessee and heavy medical treatment of parents to be undertaken, the drawings shown by the assessee at ₹ 52,147/- was considered very low and hence he made an addition of ₹ 43,853/- on the ground that the family might require minimum of ₹ 8,000/- per month towards personal expenses. 3.7. The Learned AO also added a sum of ₹ 5,000/- towards donation included in the head Miscellaneous Expenses for want of proof. 4. The Learned CITA disposed off the appeal ex parte for want of presence of the assessee or his authorized representative despite issuance of several notices and since no supporting evidences were available on record with regard to the additions made by the Learned AO, he dismissed the appeal. Aggrieved, the assessee is in appeal before us. 5. The Learned AR argued that since the Learned AO had resor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nothing but the income earned by the assessee from his undisclosed business. This receipt is outside the books of the assessee. Correspondingly, any payments / investments made outside the books of the assessee would be entitled for telescoping and hence we direct the Learned AO to delete the additions made in the sum of ₹ 1,78,496/- towards investment in security deposit with M/s Ultratech Cement Ltd and difference in bank balance to the tune of ₹ 9,368/-. Similarly we hold that since the profit determined at ₹ 5,81,730/- would be profit from undisclosed sources, there should not be any separate additions made towards excess purchases and difference in sundry creditors balances as the same are to be construed only for the undisclosed businesses. The Learned DR was not able to bring any contrary evidence to this effect before us. Hence we direct the Learned AO to delete the additions made in the sums of ₹ 9,25,180/- towards undisclosed purchases and ₹ 4,39,975/- towards difference in sundry creditors balances. With regard to the addition made towards drawings in the sum of ₹ 43,853/-, we find that the Learned AO had made this addition only on an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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