9911796707
TMI Blog2022 (12) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... Act') by the Assessing Officer, ITO, Ward-1(1), Ghaziabad (hereinafter referred as the Ld. AO). 2. The appellant had filed return of income on 28.09.2011 of Rs. 1,86,430/- and the assessment was completed by the Ld. AO u/s 147/ 143(3) of the Act on 13.12.2016 at total income of Rs. 3,91,980/- after making addition of Rs. 2,05,550/- offered by the assessee on agreed basis, being profit working out @8% on the aforesaid cash deposit of Rs. 25,65,812/-. In this context the ld AO had received information, therefore, notice u/s 148 of the Act was issued on 19.09.2015. 3. The ld Pr. CIT, Ghaziabad however considered this order erroneous and prejudicial to the interest of revenue as it observed that the assessee revised computation of income bey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urrendered the deposit at 8% on profit. 5. The ld Revisionary Authority however, observed that the assessee had disclosed bank account maintained with Bank of Baroda meaning thereby that the business transaction were from the bank account held in Bank of Baroda. While the deposit were made in the PNB Bank, Ambedkar Road, Ghaziabad Branch. The Revisional Authority observed that on one hand the cash deposit of Rs. 25,65,812/- in the disclosed bank account was offered by the assessee @8% as per provision of section 44AD of the Act and on the other hand the assessee worked out net profit of Rs. 2,22,912/- on the sale of Rs. 6282017.76 shown in the Profit and Loss Account of his source. Ld Revisional Authority was of the view that on one hand i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue. 4. That in any case invoking the provision of section 263 of I. Tax Act and the order U/s 263 of I. Tax Act is wrong and illegal and without any jurisdiction and liable to be canceled." 7. Heard and perused the record. 8. On behalf of the assessee it was submitted that the Ld. Revisional Authority has fallen in error to consider the entire cash deposit as unexplained income. It was submitted that Ld. AO had made due inquiry into alleged cash deposit and after taking into consideration the submissions of assessee, Ld. AO added 8% of the cash deposits surrendered as sales. It was submitted that at 8% of the profit u/s 44AD, addition of Rs. 2,05,265/- was made and Ld. PCIT has wrongly arrived on a conclusion of loss of revenue beca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned in the reasons recorded that the assessee not filed any return of income. 12. That in respect of reasons that the Punjab National Bank Account related to Individual and has not been opened in HUF capacity. It was submitted that at the time of opening such saving bank account with Punjab National Bank. Bank objected to open the SB Account in HUF capacity hence in order to run the HUF business smoothly apart the business run in his individual capacity the assessee open such account in his personal name but transaction recorded in the above account belong to HUF business and subsequently the assessee open saving bank account with Bank of Baroda on 15/04/2011. The return of Ankur Jain HUF for A.Y. 2011-12 was filed under the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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