TMI Blog2018 (9) TMI 2093X X X X Extracts X X X X X X X X Extracts X X X X ..... h bank statement and facts of the case we observe that there are frequent transaction of cash as well as cheques. On careful consideration of facts, we are of the view that entire deposits in bank account cannot be considered for addition. Since the bank account is reflecting deposits as well as withdrawals, hence, there is every likely that bank account has been used for unrecorded business transactions as claimed by the assessee. Therefore, it would be in the interest of justice that only profit eliminate @ 5% is considered for tax of total deposits - Therefore, the AO is directed to consider net profit @ 5% of total deposits which worked out to Rs. 91,600. Accordingly this addition of Rs. 14,76,614 is restricted to Rs. 91,600. This gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has had bank account with Yes bank Ltd. in which total deposits were at Rs. 25,82,079 including cash deposits of Rs. 12,50,000. It was explained that the transaction in this bank account relates to business trading which were not reflected in her books of accounts. Further, these deposits include cheque issued but returned un paid by the bank hence, same should be reduced from total deposits. Thus, total deposit were at Rs. 18,32,079 on which 5% net profit should be assessed to tax which comes to Rs. 91,600. However, the AO after reducing the same made addition of Rs. 18,32,079 on this account. 4. Being aggrieved, the assessee filed an appeal before the ld. CIT (A). However, the CIT (A) opinioned that the assessee has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be treated as unaccounted income. 6. Per contra, Learned Departmental Representative submitted that the explanation of the assessee that only 5% of deposits should be treated as business income is not found acceptable as the assessee has not given details of business transactions carried out by her. Therefore, CIT (A) was justified in giving his findings. 7. We have heard the rival submissions and perused the relevant material on record. We find that the assessee is a salaried person and deriving salary from Kalyani Multilink Pvt. Ltd. The deposits appearing in the bank account under consideration has not been disclosed. However, the pattern of deposits in bank account would show that these are there are some transaction in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income, copy of bank pass book and bank statement were filed. However, the AO noted that the bank statement of Shri Keyur C Shah showed that there is cash deposits of Rs. 2 Lakh before issue of cheques to the assessee and the income shown by her husband is only at Rs. 98,324 hence, he has no capacity to give loan. Therefore, addition of Rs. 2 Lakh was made in the hands of the assessee. 11. In appeal before CIT (A), it was submitted that the loan creditors was assessed to tax and loan was given out of his personal savings, hence, addition under section 68 was not justified. However, CIT (A) observed that the appellant has not discharged onus lay on her to prove the creditworthiness even though the loan taken from family member. Nor bene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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