TMI Blog2022 (8) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire deposits in cash in the bank can be safely attributed to the business receipts of the assessee only. We may add that very small businessmen like the assessee for whom the law itself provides a convenient method for declaring their incomes by returning taxes on at a presumptive rate, thus doing away with the onerous requirement of maintaining books of account and other documents, noting that it acted as a detterent to such businessmen from declaring their income, the Revenue is expected to take a considerate and holistic view on such matters and not waste its efforts and energies in making such paltry additions. Addition on account of alleged unexplained cash deposit be deleted. Appeal of assessee allowed. - ITA No. 289/Rjt/2019 - - - Dated:- 30-6-2022 - Ms. Annapurna Gupta, Accountant Member And Shri TR Senthil Kumar, Judicial Member For the Appellant : None For the Respondent : Shri B.D. Gupta, Sr.D.R. ORDER PER : ANNAPURNA GUPTA, ACCOUNTANT MEMBER:- The present appeal has been filed by the Assessee against the order passed by the Commissioner of Income Tax (Appeals)-3, Jamnagar, (in short referred to as CIT(A)), dated 27-09-2019, u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be attributed to the turnover of their business. Alternatively the assessee contended that only the peak balance be added. The ld. CIT(A) was not convinced with the explanation of the assessee and upheld the findings of the A.O. that the assessee had been unable to substantiate the source of cash deposits from the turnover of his business. The relevant findings of the Ld. CIT(A) at Para 5 of the order is as under: 5. The order u/s. 143(3) r.w.s. 147 of the Act of the AO as well as written submission of AR of the appellant have been considered. The grounds of appeal of the appellant are reproduced in initial paragraph of this appeal order. The second ground of appeal of the appellant is that the AO has erred in law as well as on fact in assuming jurisdiction in making assessment u/s. 143(3) r.w.s. 147 without issuing mandatory notice u/s. 143(2) of the Act. But this plea as raised by the appellant as per this ground of appeal and also the written submission of AR of the appellant in this regard are not found to be acceptable, The fact is that the AO has issued notice u/s, 143(2) of the Act dated 13/11/2017 to the appellant after reopening of the case u/s. 147 of the Act an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other assesses for assessment year 2009-10 and wherein the addition has been made by the department and also the additions as sustained by the CIT(A) and ITAT. The AR of the appellant has also relied upon decisions of various honorable Courts. As per the AR the appellant had done trading business of brass products and supplied goods to various parts of India and from where cash were deposited in their respective bank account which is admittedly unaccounted sales. As per the AR of the appellant the said amount were withdrawn at Jamnagar for making URD purchase for subsequent supply of goods. Thus the AR has requested to treat these deposits of Rs. 18,66,000/- as sales and not as undisclosed investment, But this entire submission of AR of the appellant is not found to be acceptable, The admitted fact is that this source of cash deposit of Rs. 18,66,000/- could not be explained by the appellant during the course of assessment proceedings and also at appellate stage by way of filing relevant details and evidence. The AR of the appellant at appellate stage himself has admitted that books of accounts in the case of appellant were not maintained as the appellant was small trader in petty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t within a very short period. Considering all these facts the above plea of AR of the appellant is not found to be acceptable. In my opinion in view of the facts as mentioned in this paragraph of this appeal order, the AO has correctly made addition of Rs. 17,09,490/- to the total income of the appellant u/s. 69A of the Act by treating the same as unexplained money and such addition of the AO is hereby confirmed. Thus the ground of appeal of the appellant is dismissed. 6. We have heard both the parties. We have noted that the Revenue has accepted the income returned by the assessee from his business by applying 5% profit rate to his turnover of Rs. 20,85,825/-. It is evident therefore that it is an accepted fact that the assessee is a very small businessman and it is common knowledge that such small businessmen conduct almost their entire business in cash. Therefore it cannot be ruled out completely that the entire turnover of the assessee was in cash. Having said so another very pertinent fact is that neither do such small businessmen maintain any books of accounts worth its while nor are they required under law to maintain books of accounts as per Section 44AD of the Act, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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