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TMI Blog2016 (1) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of Rs. 1,64,400/- after claiming deduction under Chapter VIA. The case was selected for scrutiny. A notice u/s 143(2) was issued on 29/11/2012. Assessee's AR appeared and furnished bank account statement. The AO asked the assessee to furnish the source for cash deposits made in the bank account, details of investment made in movable & immovable properties with sources, nature of business activity and evidence in support of deduction claimed under Chapter VIA. The assessee further furnished receipts and payments account and a letter stating that the cash deposits in bank account represent the advances received from customers and Rs. 5 lakhs taken from family members of his late brother. AO asked the assessee to furnish names and addres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year 2010-11 is erroneous in law or facts or both. 2. The learned Commissioner of income Tax (A) erred in holding that the business advances shown to the extent of Rs. 35,91,500/- in the receipts and payments of the account of the assessee, deserves to be considered, as for explaining the cash credits in view of the fact that the assessee failed to prove the genuineness of these advances either dur ing the course of scrut iny proceedings or dur ing the course of appellate proceeding. The ld. CIT (A) merely relied on the submission of the assessee in this regard. If it were the case that the advances deserved to be considered for explaining the cash credits. The ld. CIT (A) ought to have directed the A.O. to examine the genuinenes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unities were granted to the assessee before completion of the assessment u/s. 144. 6.1 He further submitted that the learned CIT(A) believed the version of the assessee that he was engaged in the business of supply of building material, without verifying the facts either suo moto by any enquiry or through the Assessing Officer. This was necessary as the Assessing Officer has completed the assessment u/s144. The AO categorically stated that the names and addresses of none of the parties, i.e., both who gave advances and those who received payments were furnished. These details were not furnished even during appellate proceedings by the assessee. However, the CIT (A) mentioned that the appellant was carrying on the business of supply of cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nderstood and interpreted in the way it is used in section 28 of I.T.Act. The term cannot be narrowed down by adding conjectures and surmises based upon theoretical arguments of the assessee. 6.4 It is submitted that the observation of learned CIT(A) that the AO has not made out a case that the credits in the bank accounts do not represent the business turnover or receipts, is not based on facts. In fact, the AO has completed the assessment u/s.144 since the assessee has not furnished any details that were called for, even though opportunities were given as per the Order Sheet notings (PI. see Page Nos.1 &2 of Paper Book). 6.5 Finally, the ld. DR prayed that the order of learned CIT(A) may be cancelled and the order of AO may be restored, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the assessee crossed the limit of Rs. 40 lakhs, hence, the assessee is not eligible to compute his income as per section 44AD to claim benefit in that section. Moreover, the rate applicable on the presumptive basis is 8% whereas the assessee has declared the profit at 5% of turnover. 8.1 Assessee has claimed that he has taken Rs. 5 lakhs loan from his late brother's family and he has not substantiated the above claim by way of any documentary evidence as he has not disclosed even in the receipts and payments account submitted before the AO. Since the assessee has crossed the turnover of Rs. 40 lakhs, he is not eligible to claim benefit u/s 44AD as per the provisions of this section. As the assessee has not substantiated the loans and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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