TMI Blog2023 (2) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee was doing a small business of mobile, accessories and recharge coupons etc. Thus, after considering the submissions of assessee, find merit in his submission that the assessee was doing some business activity, though it was not disclosed to the department. 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 As decided in this Tribunal in Smt. Krushangi Keyur Bhagat [ 2018 (9) TMI 2093 - ITAT SURAT ] assessee claimed that only peak credit appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessment year (AY) 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 confirming the action of the Assessing Officer in reopening the assessment u/s 147 of the Income Tax Act, 1961 and issuing notice u/s 148 of the Income Tax 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 not considering the plea for 8% G.P. amounting to Rs. 2,81,750/- from bank account transaction of business. 3. On the facts and in the circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice was filed. The Assessing Officer obtained information from bank by issuing notice under Section 133(6) about the details of bank account. The bank furnished necessary details in response to notice under Section 133(6) of the Act. The Assessing Officer on the basis of such details, noted that there was a total credit of Rs. 35,21,733/- which includes cash deposit of Rs. 24,45,800/- and other credit of Rs. 10,75,853/-. The Assessing Officer again issued show cause notice on 11/09/2019 as to why total credit of Rs. 35,21,733/- should not be treated as unaccounted income. The Assessing Officer recorded that the assessee filed his return of income on 27/09/2019 declaring income of Rs. 2,81,750/- on gross total turnover of Rs. 35.21 lacs un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which relates to quantification of income on account of undisclosed bank deposit, in majority of decisions it was held that peak credit in the bank account should be taken as income from the deposit in undisclosed bank account. The bank deposits contained deposits as well as subsequent withdrawal and adding back the entire deposits would be arbitrary and harsh. The ld. CIT(A) find that the peak credit is Rs. 8,12,229/- and accordingly restricted the addition to that extent and thereby deleted the remaining addition. Further aggrieved, the assessee has filed the present appeal before this Tribunal. 4. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that he is not pressing ground No. 1 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under section 148 and no addition is liable to be sustained. 6. In alternative submissions the ld. AR for the assessee submits that to avoid the protracted litigation, a reasonable estimation of the income form such cash deposits may be made. To support his submission, the ld. AR has relied on the following case laws: (i) CIT-VII Vs Pradeep Shantilal Patel (2014) 42 taxmann.com 2 (Guj) (ii) Mukesh Gamanbhai Patel Vs ITO ITA No. 1636/Ahd/2013 dated 16/10/2018 (iii) Bharat GAnpatram Vys Vs ITO ITA No. 186/Srt/2022 (iv) Jagdishbhai Savjibhai Patel Vs ITO ITA No. 67 68/srt/2019 dated 27/07/2022. (v) Nikhil Jatinkumar Lapsiwala Vs ITO ITA No. 219/Srt/2021. 7. On the other hand, the ld. Sr. DR for the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered for addition. The frequent deposit and withdrawal shows that the bank account in dispute was used for unreported business transactions. As recorded above the ld AR for the assessee before me claimed that the assessee was doing a small business of mobile, accessories and recharge coupons etc. Thus, after considering the submissions of the ld AR for the assessee, I find merit in his submission that the assessee was doing some business activity, though it was not disclosed to the department. 9. The Hon ble Gujarat High Court in CIT Vs Pradeep Shantilal Patel (supra) 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 tot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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