TMI Blog2022 (5) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts, bills and vouchers maintained by the assessee. It is also noted that the books of account of the assessee are maintained day today and no defect has been noticed by the AO during assessment proceedings. The assessee has declared N.P. Rate of 11.80% as compared to N.P. Rate of 13.14% of immediately preceding year. This slight decrease in the profit is ignorable due to stiff competition in the market for the businessman. It is also noteworthy to mention that provisions of Section 44AD of the Income Tax Act prescribes that in case of non-maintenance of books of account, an assessee may declare his income at a minimum rate of 8%of the turnover and the same is accepted. It means that the Department is satisfied if an assessee declares profit at least at a rate of 8% but in the present case the assessee has declared N.P. Rate of 11.80% which is better than the rate so stipulated u/s 44AD of the Act. Hence, in view of all the facts and circumstances of the case, we do not concur with the findings of the lower authorities. - Decided in favour of assessee. - ITA No. 893/JP/2018 - - - Dated:- 6-4-2022 - DR. S. SEETHALAKSHMI, JM AND SHRI RATHOD KAMLESH JAYANTBHAI, AM Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emands that all litigants, including the State as a litigant, are accorded the same treatment and the law is administered in an evenhanded manner. There is no warrant for according a step-motherly treatment when the State is the applicant praying for condonation of delay. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a non-deliberate delay. Keeping in view the present facts and circumstances of the case, the application of the assessee for condonation of delay in filing the appeal is allowed. 4.1 The grounds of appeal raised by the assessee are as under:- 1(a) In the facts and circumstances of the case and in law the ld.CIT(A) has erred in confirming the action of the AO of making addition of Rs.12.00 lacs u/s 69A of the Act. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the said addition of Rs.12.00 lacs. (b) In the facts and circumstances of the case and in law the ld.CIT(A) has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the cash deposited in saving bank account was out of his receipts from Hotel Agarwal which was being run by the assessee during the year under consideration. On perusal of entry dated 10/07/2010, it found that Rs. 12,00,000/- has deposited in SB A/c. While the assessee was asked to explain the source of credit entry, the assessee. submitted that it was from out of opening cash surplus as on 01/04/2010 and onwards. The explanation given by the assessee was against the fact because in his ROI for the A.Y. 2010-11, the assessee had declared closing cash balance of Rs.18,300/- as on 31/03/2010 while during the assessment proceedings the assessee had shown opening cash balance of Rs. 12,27,527/- as on 01/04/2010 that seems afterthought, The cash book as well as other books of accounts produced by the assessee during the course of assessment proceedings has no relevancy because the assessee has filed his ITR declaring therein that regular books of accounts of business are not maintained. As the source of cash deposits of Rs. 12,00,000/- found credited in bank account have not been explained by the assessee hence the same was added to the total income of the assessee u/s 69A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of advance took place in the current or ensuing assessment years as per record (ITRs) available with this office. Considering the above facts I am the opinion that cash deposited in bank account of Rs. 12,00,000/- is unexplained. Therefore I confirm the addition made by the Assessing Officer of Rs. 12,00,000/- as unexplained deposit in bank account. This ground is not allowed. 5.3 During the course of hearing, the ld. AR of the assessee prayed that the lower authorities have erred in confirming the addition of Rs.12.00 lacs for which the assessee had lucidly made out the case to the AO during the course of assessment proceedings and all the desired documents were produced relating to sale of shop for Rs.15 lacs to Shri Mohd. Yasin R/o Mohalla-Khera, Jhunjhunu. The assessee had received a sum of Rs.9.00 lacs from Shri Mohd. Yasin as advance against sale of shop and the balance of Rs.6.00 lacs was receivable from him within one year from the date of the agreement made between the parties. The ld. AR of the assessee submitted that he had given the bifurcation of the amount of Rs.12.00 lacs which is also mentioned in ld. CIT(A) s order at page 3 as under:- 1. Advance receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities wherein the ld. CIT(A) has confirmed the addition of Rs.12.00 lacs on the ground that the assessee was unable to explain the source of cash deposit of Rs.12.00 lacs while the assessee time and again in his submission has prayed that he has received Rs.9.00 lacs cash from Shri Mohd. Yasin as advance against sale of a shop belonging to him and Rs.3.00 lacs pertained to his wife as Stridhan. It is noted from the above discussions that the assessee could not disclose the source of Rs.9.00 lacs substantially with corroborative evidence. He has not countered any observation of the AO and even had not filed such evidences which were placed before the ld. CIT(A) to check the veracity of finding. The ld. AR of the assessee on asking, expressed his inability to file those documents before us. He has also submitted that Rs.3.00 lacs pertained to his wife being Stridhan. Keeping in view the totality of the facts and circumstances of the case, the Bench feels that out of Rs.12.00 lacs disallowed by the lower authorities, the amount of Rs.3.00 lacs as Stridhan can be considered as a good gesture that the wife of the assessee might have saved such an amount as Stridhan and may have give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r rejecting book results. Thus, the ld. AR of the assessee prayed for deletion of addition made by the AO and sustained by the ld. CIT(A). 6.4 On the other hand, the ld. DR supported the orders of the lower authorities. 6.5 After hearing both the parties and perusing the materials available on record, the Bench observed that the AO has not pointed out any specific defects in the books of accounts, bills and vouchers maintained by the assessee. It is also noted that the books of account of the assessee are maintained day today and no defect has been noticed by the AO during assessment proceedings. The assessee has declared N.P. Rate of 11.80% as compared to N.P. Rate of 13.14% of immediately preceding year. This slight decrease in the profit is ignorable due to stiff competition in the market for the businessman. It is also noteworthy to mention that provisions of Section 44AD of the Income Tax Act prescribes that in case of non-maintenance of books of account, an assessee may declare his income at a minimum rate of 8%of the turnover and the same is accepted. It means that the Department is satisfied if an assessee declares profit at least at a rate of 8% but in the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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