Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2022 (9) TMI 1374

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it would be justified if only profit element in such business activities from where the assessee generated the credit found in the bank account. The lower authorities have confirmed the entire aggregate of deposits and have not considered the withdrawal. The Hon ble Gujarat High Court in CIT Vs Pradeep Shantilal Patel [ 2013 (11) TMI 1646 - GUJARAT HIGH COURT] held that where assessee admitted that cash deposit pertains to his retail business but details and nature of business were not forthcoming from record, considering the total turnover of assessee, net income had to be determined under Section 44AF. The Coordinate Bench of this Tribunal in Smt. Krushangi Keyur Bhagat [ 2018 (9) TMI 2093 - ITAT SURAT] almost on similar set of fa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssment year 2012-13. The assessee has raised following grounds of appeal: 1. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in reopening the assessment u/s 147 of the Income Tax Act, 1961 and issuing notice u/s 148 of the Act, 1961. 2. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 32,55,324/- on account of cash deposited of Rs. 13,72,000/- and credit of Rs. 18,83,324/- into saving bank account treated as alleged unexplained money u/s 69A of the Act. 3. On the facts an .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ndra Bank. The said bank account is not disclosed in the books of assessee. This bank account was in the joint name of assessee with her wife Smt. Vinaben B Vyas. On verification of details pertaining to assessment of Vinaben B Vyas, it was also noted that the said account is also not disclosed in her books as well. The Assessing Officer issued show cause notice dated 05/10/2019 in fixing the date of hearing on 11/10/2019. In the show cause notice, the Assessing Officer issued show cause as to why total credit of Rs. 32,55,324/- should not be treated as unexplained money and be added to the total income of the assessee. The Assessing Officer recorded that no reply was received by assessee despite giving sufficient time. The Assessing office .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f learned authorised representative (ld AR) of the assessee and the learned Senior Departmental Representative (Sr.DR) for the Revenue. The ld. AR of the assessee submits that the assessee filed his regular return of income for assessment year under consideration on 18/02/2013. Copy of acknowledgement of return is filed and the same is available on record. In the return of income, the assessee has offered business income as reflected in the return of income. The assessee was running his business in the name of Varsha Packaging and Plastic Industry . The assessee was in the business of trading of plastic items. The assessee has offered 8% income under Section 44AD of the Act on the total receipt of Rs. 41,83,221/-. The cash deposited on var .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that the assessee has not disclosed his bank account in his books of account, nor disclosed it with department while filing return of income, therefore, the Assessing officer was right and justified in adding the entire deposit in the impugned bank account as it was the additional and unrecorded income of assessee. Now, the assessee cannot take the plea of taxing profit margin on the cash deposit in the bank account. 6. I have considered the submissions of both the parties and have gone through the orders of lower authorities carefully. I find that the during the assessment, the Assessing officer made addition of aggregate of cash as well as cheque deposit in the bank account of assessee. The ld. CIT(A), confirmed the additions by taking .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Tribunal in Smt. Krushangi Keyur Bhagat Vs ITO (supra) almost on similar set of facts wherein cash credit of Rs. 1,83,207/- was found credited in the bank account of that assessee, the assessee took plea before lower authorities that transaction in bank account pertained to her textile business. The assessee claimed that only peak credit appearing in the bank account should be considered which was not accepted and the amount after reducing the cheque deposits, remaining was treated as unexplained. However, on appeal before Tribunal, the plea of assessee that amount credited in the bank was a part of textile business and only profit element @ 5% of total deposit including of credit by way of cheque was considered as a profit element on the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates