TMI Blog2022 (12) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... partner is also in the business of construction. The details of the contract work with Ursuline Sister of Mary Immaculate Educational Society were furnished by the assessee. The burden u/s.69A of the Act is only to give a satisfactory explanation. The facts and circumstances of a given case would be sufficient to draw an inference that receipts can be attributed to only business and no other source. The decision in the case of Balchand Ajitkumar [ 2003 (4) TMI 76 - MADHYA PRADESH HIGH COURT ] also supports the plea of the assessee. Therefore accept the plea of the assessee that 8% of the cash deposits/cash credit, be treated as income of assessee from business of civil construction and the said sum be taxed in lieu of taxing the entire c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee s premises, which have been described by the AO in the order of Assessment as follows: Seized documents contained in A/GD/1 comprising of 58 pages as per inventory in Annexure A/GD/1 to Panchanama dated 25.06.2016. A/GD/01 contains details of various transactions between Gregory D'Silva, Premi D'Silva and Melwyn Claudy Mascarenhas. 4. The assessee was not subjected to a Search u/s.132 of the Act and hence proceedings u/s.153A of the Act was not initiated against the assessee. Since the search was in the case of Nidhi Ace Infrastructure and the documents found in the course of such a search had bearing on determining the total income of the assessee, proceeding under section 153C of the Act were initiated against the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee failed to establish with supporting evidence that the cash deposits were receipts from civil contract works undertaken by the assessee. The AO therefore brought to tax the cash deposits as unexplained money under section 69A of the Act and brought the same to tax under the head Income from Other Sources . 6. On appeal by the assessee, the CIT(A) confirmed the order of the AO. The CIT(A) held that section 44AD is a special provision and it carves out an exception in respect of certain businesses where the turnover is not more than Rs.2 crores and is an indication that this provision is meant for small businesses. To avail the benefit of such provision, the assessee has to necessarily satisfy the Assessing Officer that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 294 (AP), it was held that unless unexplained credits are referable to business, they cannot be considered as part of business income for the purpose of estimation of profits of business. (iii) CIT v. Devi Prasad Vishwanath Prasad [1969] 72 ITR 194 where there is an unexplained credit, it is open to the AO to hold that it is income of the assessee, and no further burden lies on the AO to show that the income is from any particular source. It is for the assessee to prove that, even if the sundry creditors represent income, it is income from a source which has already been taxed. (iv) NavinShantilal Mehta v. Income-tax Officer, Ward-32 (2) (4), [Mumbai 2018] 90 taxmann.com 16 (Mumbai - Trib.) , the ITAT MUMBAI BENCH, hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon ble MP held as follows: 1. On appreciating the rival submissions raised at the Bar, we have carefully perused the order passed by the Commissioner of Income-tax (Appeals) and also that of the Tribunal. It is not disputed that the undisclosed income was Rs. 2,57,000. The sole question that arises for consideration is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been found subject of undisclosed sales. 4. We are in respectful agreement with the aforesaid opinion inasmuch as the total sale cannot be regarded as the profit of the assessee. The net profit rate has to be adopted and once a net profit rate is adopted, it cannot be said that there is perversity of approach. Whether the rate is low or high, it would depend upon the facts of each case. In the present case net profit rate of five per cent. has been applied. We do not think it appropriate that the same requires to be enhanced. We are also inclined to think that it is high. In any case, it cannot be said that there has been perversity of approach. 8. Learned DR relied on the order of the CIT(A) and the decision cited by the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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