TMI Blog2021 (9) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... esent case, there was no adequate material to conclude that the transaction recorded in the seized documents are total undisclosed income of assessee which remained unexplained. The other aspect of the matter is that presumptions u/s. 292C are rebuttable presumptions and they do not lead to conclusive evidence. The assessee has right to rebut the presumption. In the present case, since the assessee has not rebutted the presumption, CIT(A) has given a direction to estimate the income on the turnover @ 5% as income of the assessee. In view of the inadequate material to suggest that the entire turnover is income of the assessee, to be reasonable and fair, the CIT(A) estimated income @ 5% of the turnover. We do not find any infirmity in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of ₹ 15,43,790/-. The return was processed u/s. 143 of the Income-tax Act on 15.01.2014. There was a search action in the case of assessee u/s. 132 of the Income-tax Act, 1961 [the Act] on 24.11.2015 at her residential premises and a survey was conducted on the same day at her business premises. Notice u/s. 153A of the Act was issued on 23.9.2016. The assessee filed return of income on 27.10.2016 declaring income of ₹ 1,54,37,790. The income from business was admitted u/s. 44AD of the Act. 3. In the course of assessment, the AO inter alia made the addition of ₹ 2,14,90,104 as income from other sources in view of undisclosed investments. The AO recorded there were trade receivables as on 31.3.2012 as compiled from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21490104 FY 2013-14 21490104 86799537 89395185 2595648 FY 2014-15 19472649 108025741 101066069 -6959672 FY 2015-16 7381135 11172342 9801703 539573 Total 205997620 200262957 17665653 6. On these receipts, the AO made addition of ₹ 2,14,90,104 in the assessment year under consideration as undisclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diaries does not belong to the assessee. He considered the pocket diaries found during the course of search action as belonging to the assessee. He also considered the contents mentioned in the pocket diaries as true. He observed that it reflects the undisclosed turnover of the assessee. However, he has given a finding that the entire turnover mentioned in the pocket diaries in its entirety cannot be considered as undisclosed income of the assessee and turnover includes purchase cost, labour cost, other costs and gross profit and he estimated only the net profit of that turnover @ 5% and directed the AO accordingly. In our opinion, even after applying the presumptions u/s. 292C of the Act to the facts of the present case, there was no adequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer to consider only 2% of this cash deposit of ₹ 2,61,00,100 as undisclosed income of the assessee. This ground of appeal of assessee is allowed and that of Revenue is dismissed. 9. The above order of the Tribunal was passed by following the earlier order of the Tribunal in M.A. Siddique Vs. DCIT in ITA Nos. 62 to 66/Bang/2020 Dt. 14.08.2020 wherein the Tribunal considered the business of Supari and observed that in the case of unaccounted sales no bill is issued and therefore no customer will pay taxes and levies which will result into higher profit to the seller. The Tribunal adopted the profit rate of 2% in the case of Supari business. 10. The above order is squarely applicable to the facts of the case. Being so, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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