TMI Blog2021 (11) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act without giving any consideration to the debit/withdrawal of the money. So the action of the Ld. CIT(A) on this score cannot be per-se countenanced. And it is equally interesting to note that both AO/Ld. CIT(A) has accepted the presumptive tax from mini truck offered by assessee u/s 44AE of the Act which means the authorities below has accepted that the assessee is in to the business of plying vehicle and eligible for adopting presumptive tax u/s 44AE of the Act which action we also concur/confirm. Therefore we order accordingly. Cash deposits in the assessee s bank account as depicted in the chart given by the AO - It goes without saying that when there is cash deposits in his account, he is duty bound to explain the nature and source of the deposits in it during the proceedings before the AO. Be that as it may be, reasonable estimation of the income of the assessee need to be made on the cash deposit/withdrawal made in the assessee s bank account. Therefore, we set aside the order of the Ld. CIT(A) and remand to the AO for estimation of income in respect of the sums deposited. For that the AO to consider the withdrawn amount also and after allocation of reasonable gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 93,99,312/-. According to the assessee, the sources of cash deposit in bank was that of the sale proceed and freight/income from mini truck. Thus the AO observes that the assessee tried to establish that the sale proceed of the business of potato etc. was to the tune of ₹ 18,17,625/- and the freight is to the tune of ₹ 75,81,687/- totaling to ₹ 99,99,312/-. The AO thereafter notes that the total cash deposit on different dates during the year is to the tune of ₹ 82,06,499/- and he thereafter mentioned eight (8) dates in the form of chart at page 3 of his order wherein instances of deposits/withdrawals are shown to have taken place. The AO acknowledges that some of the remittance made were to the merchants of potato/onion however he was not satisfied that the deposits made in the account. The AO notes that the assessee has a mini truck (Camper). The AO also notes that the assessee had not shown any income from the running business of mini truck initially in his return of income however has brought in the gross-income from the mini truck to the tune of ₹ 75,81,840/- which in the average comes to ₹ 6,31,280/- monthly and the assessee has offere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Gau/2019 [ The AO passed penalty order u/s 271(1)(c ) by order first vide order dated 17.08.2017 at ₹ 90,000/- and in addition to the said penalty, the Ld. CIT(A) vide the impugned penalty order dated 23.09.2019 after computation of it made by AO levied ₹ 26,34,138/-also ]. Both the appeals are heard together. 6. We have heard both the parties and perused the records. We note that the assessee has filed return of income showing total income of ₹ 2,331,410/-. The assessee s case was selected for scrutiny through CASS for examination of cash deposit in his bank account. The assessee has not filed any paper book before us though it has filed both the appeals. While going through the assessment order we find inter alia certain contradiction in the observations made by the AO and the computation of income reproduced by the AO like at page 2 of assessment order, the AO is stating that in the computation of income, the assessee has shown total income wherein he quotes Net income from plying of mini truck u/s 44AE of ₹ 90,000/- . Thereafter in para 3 the AO notes that the assessee has not shown income from mini truck u/s 44AE in his return mentioning Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see s case is that he is into the business of potato/onion/grocery and has offered presumptive tax u/s 44AE of the Act since he is not maintaining any books of accounts. According to the assessee, he has gross receipt from this business to the tune of ₹ 18,17,625/- and therefore he has offered presumptive tax of ₹ 1,45,410/- which is 12.5% of the gross receipt. This income of the assessee from potato/onion/grocery need to be accepted since it has been brought to our notice that the assessee has been consistently assessed in the earlier assessment years also the income from this business and therefore the same to be accepted from this business i.e. ₹ 1,45,410/-. Therefore we order accordingly. 8. Coming to the income from plying of mini truck is concerned we note that presumptive taxation u/s 44AE of the Act is for the assessee who owns not more than ten (10) good carriages and is engaged in the business of plying/hiring vehicle of such goods carriages wherein the business income from the same is chargeable to the tax under the head profit and gains of the business or profession shall be deemed to be the income of the profit and gains from all the goods carria ..... X X X X Extracts X X X X X X X X Extracts X X X X
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