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TMI Blog2016 (1) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account with IDBI by applying gross profit rate of 10%. 2.1 Brief facts of the case are that the assessee filed the return declaring income of Rs. 1,03,760 on 6-10-2004. On the basis of Annual Information Return (for short 'AIR') filed by IDBI Kishangarh Branch, the AO observed that there were cash deposits of Rs. 35,23,249/- during the year in the savings bank account of the assessee. The AO therefore, issued notice u/s 148 against which the assessee filed the revised return on 25-04-2011 declaring total income of Rs. 3,88,165/-. The AO enquired from the assessee to explain the source of deposits of Rs. 35,23,249/- maintained with IDBI. The AO was not satisfied with the reply of the assessee as to deposition of an amount of Rs. 35,23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rused the materials available on record. We have observed that the ld. CIT(A) has taken into consideration the decision of Coordinate Bench in the case of ITO vs Smt. Anita Choudhary (supra) and also Departmental appeal before Hon'ble Jurisdictional High Court against ITAT order in the case of Smt. Anita Choudhary u/s 260A in DB IT Appeal No. 289-2010 which was dismissed. The observation of the Coordinate Bench in the case of ITO vs. Smt. Anita Choudhary (supra) is as under:- ''4. We have heard both the parties. The Tribunal vide order dated 29th May, 2009 in the case of Shri Ram Swaroop in ITA No.113/JP/2009 for the assessment year 2005-06 had an occasion to consider the cash deposits of Rs. 22.86 lacs made in the account of Shri Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marble and the assessee is not having any other source of income. Once the assessee has offered an explanation and the Revenue has not established that explanation is false then one will have to consider the income generated from the turnover as in the bank account. It is true that the assessee has shown gross profit in the marble business and the ld. CIT(A) has partly upheld the addition by applying the gross profit rate of 8.78%. We feel that in case where funds are received for the purchase of marble and the assessee has to render the services for purchases of marble and transportation then the gross profit rate will be slightly higher and we feel that the income from the turnover to the extent of of Rs. 25,20,272/- should be estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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