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Smt. Renu Agarwal Versus The Income Tax Officer, Ward-5 (2) , Hyderabad

2016 (9) TMI 903 - ITAT HYDERABAD

Unexplained deposits in the bank account - Unexplained income of the assessee - whether the assessee is not a dealer in nuts and bolts ? - Held that:- CIT(A) correctly observed that there is no evidence to prove that assessee was engaged in business of purchase and sale of nuts and bolts whereas there were sufficient deposits in the bank account. Since assessee could not prove the source of this amount the Assessing Officer was justified in making the addition. Thus, he confirmed the action of t .....

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tuation. Accordingly, the case was adjourned to 20th June, 2016 and the date of hearing was announced in the open Court. However, on the said date none appeared on behalf of the assessee. I, therefore, proceed to dispose of the appeal ex-parte qua the assessee. 2. The following grounds were urged in the grounds of appeal : 1. That the assessing Officer erred in making addition of ₹ 46,93,270/- arbitrarily, ignoring the fact that all the information called for were submitted regularly along .....

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the facts presented before himself and available on record since original hearing, which was submitted by us at different points of time during the original hearing earlier. 6. That the Assessing Officer has passed the order with preconceived mind and ignoring the facts available before himself and the discussion we had with him. 7. The Assessing officer ought to have considered the fact that the original assessment was completed U/s 143(3). 8. Assessing Officer has ignored the fact that why a .....

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were made at various locations of erstwhile Andhra Pradesh, giving ample proof that some business activity was done. 10. Even if the Assessing Officer was so particular about addition then he should have considered after withdrawals made during the year. Thus addition made in the way was unwarranted. 11. Any other ground with the permission of the chair. 3. Though the assessee filed paper book, since no one was present to refer to the specific papers in the paper book, as per Rule 18(6) of the .....

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whereas the assessment was completed on a total income of ₹ 6,66,415. The assessee was stated to be engaged in the business of hardware i.e., sale of nuts and bolts etc., Since the assessee has not maintained books of account and declared gross margin of 2 to 2.5% of the turnover the Assessing Officer rejected the same and estimated 10% of the turnover as the income of the assessee. 5. On examination of the assessment order the revisional authority noticed that determination of the income .....

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n the F.Y. 2008-09. During the assessment proceedings it was explained that the amounts deposited in the bank account represented sales proceeds of business relating to nuts and bolts. As no books of accounts were maintained, the assessment was completed by adding the estimated income of nuts and bolts business at 10%. However, no information was brought on record in support of the contention that the amounts deposited in the bank account related to the turnover of nuts and bolts business. Neces .....

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of the assessee the revisional authority/CIT was of the opinion that the Assessing Officer had not correctly examined the issues; Therefore, the assessment requires to be re-done afresh. Upon receipt of the order passed under section 263 dated 04.02.2014 the Assessing Officer gave a notice to the assessee and after examining the record, he noticed that the assessee is not a dealer in nuts and bolts and therefore the entire amount deposited in the bank account, to the tune of ₹ 46,93,270, d .....

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7; 4,76,661 only to buy peace from the department but the arbitrary addition made by the Assessing Officer in the proceedings under section 143(3) read with section 263 is not in accordance with law. 8. During the appeal proceedings before the CIT(A), it was submitted that copy of bank account is self evident that the amount was deposited at various locations like Guntur, Kothapeta, Chitradura, Karimnagar, Nanded, Chittoor etc., which proves some business transactions are there and entire amount .....

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