TMI Blog2018 (9) TMI 2091X X X X Extracts X X X X X X X X Extracts X X X X ..... he Jari business of the assessee. Keeping in view the provision of s. 44AD of the Act and amount of turnover undertaken by the assessee during the relevant period, we are of the considered opinion that the entire amount deposited to the bank account of the assessee by the respective purchasers cannot be treated as income of the assessee only profit element therein can be treated as income of the assessee from Jari business. Therefore, all possible leakage of revenue would be covered if, the profit/income earned from the Jari business is estimated @ 10% of total turnover of the assessee and we direct the AO to calculate the income of the assessee accordingly. From the copy of bank statement, we observe that on 31.03.2007 there was bala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs. 18,37,895/- on account of alleged unexplained cash deposited in savings bank account. 3. We have heard the arguments of both sides and carefully perused the relevant material placed on the record of the Tribunal. The ld. AR submitted that the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs. 18,37,895/- on account of alleged unexplained cash deposited in savings bank account. He further submitted that the assessee is in the business of Jari which is sold in the South Indian areas and sale proceed is deposited by the respective purchasers in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he south India and except amount deposited to his bank account no other transaction have been traced or brought on record. In this situation, we are in agreement with the contention of the ld. AR that this amount was received through bank account from the purchasers located in the South India and this amount is sale proceed of sale of Jari, which was used further for making payment to the suppliers of goods which was sold by the assessee in South India. Definitely assessee belongs to a category of trader which falls within the ambit of provision of s. 44AD of the Act having turnover of less than Rs. 40,00,000/-. As per provision of s. 44AD of the Act, 8% of turnover or gross receipts of the assessee in the previous years on account of such ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
