TMI Blog2020 (4) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... s like Delhi and UP. The bank account also reflects payments made to textile concerns. Therefore, it is clearly apparent that cash deposits are linked with business transaction of the assessee. Since the assessee has not maintained any books of accounts, hence, in such situation only net profit as per provisions of section 44AD is required to be estimated as net profit and not entire turnover or cash deposits reflected in the bank account. Following the ratio laid down in the case of CIT V. Pradeep Shantilal Patel [ 2013 (11) TMI 1646 - GUJARAT HIGH COURT] wherein it was held that where assessee admitted that cash deposits pertained to his retail business but details and nature of business were not forthcoming from record, considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h credit. 3. Succinct facts are that AIR information revealed that the assessee had a bank account in HDFC Varachha Branch Surat wherein cash deposits of ₹ 53,27,345 were reflected beside cash deposits of ₹ 5,000 in bank account with OBC Ichhapor, Surat. These bank accounts have not been disclosed in return of income of the assessee. Therefore, a show-cause notice was issued on 21.01.2016 to explain the source of bank deposits by 27.01.2016. But, no explanation was filed, therefore, the AO treated the entire bank deposits as unexplained cash deposits and added to total income. 4. Being, aggrieved, the assessee filed an appeal before the Ld. CIT (A). Wherein the assessee submitted that the deposits in bank account comprises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er submitted, that if the above plea of the assessee is not accepted, the addition if any, can be made only in respect of peak credit since cash deposits in bank account has been utilised in the manner as explained above, and if the same is not recorded as expenditure of assessee in that case, the obvious conclusion is that the assessee has not parted with the cash and the same is available with him for redeposit in the bank account. Therefore, it is the peak credit of the bank account which comes to ₹ 6,60, 603 as on 21. 01. 2013. Hence, only peak credit balance can be added for which reliance was placed on the decision of ITAT Ahmedabad in the case of Vishal Chug I.T.A.No. 866/Ahd/2013. However, CIT (A) did not accept the pleas of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hence, at the most net profit @8% as per section 44AD can be sustained and not the whole addition made by the AO. The learned counsel for the assessee also filed additional evidence in respect of business transaction in the form of confirmation and or purchase bills of two suppliers. 6. Per contra, the ld. Sr. D.R. submitted that no proper application has been made for additional evidence hence, same is not admissible. Furthermore, the assessee has not filed any submission during the course of assessment proceedings, hence, CIT (A) has rightly upheld the order of the AO. 7. We have heard the rival submissions and perused the relevant material on record. The perusal of assessment order reveals that the assessee has not filed any det ..... X X X X Extracts X X X X X X X X Extracts X X X X
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