TMI Blog2021 (3) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... payments and there should be due credit to be given. In our opinion, where the credit card withdrawals on earlier occasion from various credit cards was used for business purpose are to be established by the assessee by filing necessary evidence and establishing that assessee has used the credit card withdrawals for business purpose and thereafter it has withdrawn the money from the business to clear credit card dues. Accordingly, we remit this issue for the purpose of establishing the nexus between credit card withdrawals and by using it for business purposes and repay the card dues out of business receipts. In the present case, the A.O. not accepted the turnover declared with assessee and he considered the turnover on the basis of VAT return, which is evident from the table reproduced in para 6 of this order. Accordingly, we are not considered the above judgement in the case of Delux Roadlines Pvt. Ltd. [ 2014 (10) TMI 855 - KARNATAKA HIGH COURT ] Further, assessee s counsel relied on the judgement of Indwell Constructions [ 1998 (3) TMI 121 - ANDHRA PRADESH HIGH COURT ] for the proposition that where the books of accounts have been rejected, revenue cannot rely on the same b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be reduced substantially. The authorities below failed to appreciate the fact that the business of the appellant and like cannot achieve a net profit of about 10% and the same requires to be reduced substantially, as per the industry average, under the facts and circumstances of the case. 7. The authorities below failed to appreciate the fact that once the income is estimated no other addition shall be made and further the authorities below ought to have telescoped other additions with that of the income from business estimated under the facts and circumstances of the case. 8. The learned CIT(A) is not justified in confirming the addition of ₹ 16,18,606/- by invoking the provisions of section 69C of the Act treating the payment made through the credit cards as unexplained expenditure under the facts and circumstances of the case. 9. The learned CIT(A) is not justified in law and in facts in confirming the addition of ₹ 13,42,500/- as unexplained cash credits under the facts and circumstances of the case. 10. The appellant denies the liability to pay interest under section 234A and 234B of the Act in view of the fact that there is no liability t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant 8,11,380 5,40,083 7,62,168 % of Turnover as per computation 4.08 7.91 7.51 Additions in appeal 12,43,120 3,16,957 2,52,158 In these assessment years, the income of the assessee estimated at 10% of gross turnover. The contention of the Ld. A.R. is that it is too high and it should be restricted to the income offered by the assessee and the percentage of income offered by the assessee is more the trade norms in this kind of assessee. 5. Ld. D.R. submitted that the assessee s argument is not based on any documents or evidence to support the same. Accordingly, it was submitted that assessee s books of accounts is not verifiable as such, A.O. made a reasonable estimate of 10% of the total turnover of the assessee. 6. We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. In this case, it was noticed that the assessee is not maintaining books of accounts, as such, the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her addition could be made either u/s 68/69C of the Act or by any other provisions of the Act. There is no rule that when an amount is credited in the bank account, it must be taken as receipt from the business. The amount deposited into bank account is received from business or income or from other sources depends on the evidence and explanation furnished by the assessee. If the deposits are found in the bank account of the assessee and the explanation as to the nature and source of the amount is rejected by the A.O., in such occasion, the A.O. is entitled to treat the deposits as income from other sources and not as income from business. It is merely because the assessee is running a business in which event certain unexplained deposits, it is not necessary to show that such deposits represent the suppressed business receipts and there would be no error of law in treating the unexplained deposit income of the assessee from other sources. Unless there are strong reasons for giving unexplained deposits with known source of income of the assessee, there will be no alternative to treat the same as income from other sources . In the present case, the plea of the assessee that payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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