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TMI Blog2024 (11) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 41 lac (including bank loan of Rs. 20 lac) out of Rs. 55 lac made through the banking channels, is factually wrong and incorrect, as the appellant received drafts of Rs. 35 lac from his father. As such, as per the calculation made by the Id. CIT (A) himself, addition of Rs. 14 lac (in addition of Rs. 21 lac) should have been deleted. That the Id CIT (A) is wrong and unjustified in treating the balance funds at Rs. 32,30,000/- (which would remain at Rs. 18,30,000/- in case of acceptance of bank drafts of Rs. 35 lac as claimed in Ground No. 2 above) in the form of past savings and income of the appellant and his wife as un-explained. The fact that both the appellant and his wife Smt. Munesh Devi had agriculture income in addition to the business income, and were regularly assessed to tax for past several years, has not been considered in the due perspective it deserved. As such the addition Rs. 32,30,000/- deserves to be set aside. That on facts and circumstances of the case, the Capital Accounts of the appellant and his wife filed during the course of assessment proceedings with sufficient evidences and also before the CIT (Appeals), should have been accepted and as such t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een accepted by the assessing officer. The assessee has offered an explanation, that, the investment of Rs. 20,50,000.00 out of the withdrawal of his capital, which has been ignored by the assessing officer and CIT (A), in a summary manner without appreciating the capital account and statement of affairs filed by the assessee, during the assessment and appellate proceedings, the same are being enclosed at page no. 43 to 46 of P/B. [Finding of CIT(A) is at Page no. 12 of CIT(A) Order) That, the assessee has done a business of trading of Straw etc., in which the assessee has introduce, his capital, in shape of advance given to the farmers, in the end of financial year ie. January to March, for the purchase of Wheat Straw from the farmers, in the month of April to June, in which the wheat Crop has been cultivated by the farmers and the same has sold to the other retailers and the payments were received in CASH against the Sale of the Straw, which has been withdrawal as capital by the assessee for the investment in the aforesaid immovable properties. In view of the above, it is clear from the Capital Account and Statement of Affairs, the assessee has done its business in CASH, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dded and treated as income, in the hands of his wife Smt. Munesh Devi." 5. Per contra, the Ld. Departmental Representative submitted that the Ld. CIT(A) has rightly sustained the addition of Rs. 32,50,000/- which requires no interference at the hands of the Tribunal and by relying on the order of the Ld. CIT(A), sought for dismissal of the Appeal of the Assessee. 6. We have heard both the parties and perused the material available on record. 7. In so far as the addition of Rs. 20,50,000/- is concerned, it was the case of the Assessee that, the Assessee has withdrawn capital from the business of the Assessee who was engaged in the business of Straw (Bhus) for long time and the Assessee has shown income under Section 44 AD of the Act. The Assessee has made business in cash, therefore, out of the availability of cash of the Assessee, the Assessee has made investment. The Assessee has shown the income under Section 44AD of the Act and in the year under consideration and the Assessee has shown turnover of Rs. 18,35,000/- and declared the income of Rs. 2,50,000/- from the aforesaid business which has been accepted by the AO. The explanation given by the Assessee was that out of the wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" 14. In the light of the provisions of section 44AD of the Act, we note that assessee has filed his return of income under section 44AD of the Act and shown turnover of Rs. 16,02,300/-, which falls in the scope of provisions of section 44AD of the Act. The cash deposit in the bank account is to the tune of Rs. 13,87,000/-, as noted by the assessing officer. As per assessee, the said cash deposited in bank account is out of cash turnover of Rs. 16,02,300/-, as declared by the assessee, therefore, we note that such small assessee has proved his bona fide, about the cash so deposited in the bank account. The ld Counsel pleads before us that while filing return of income, the assessee has selected wrong Income Tax Return form (ITR form), that does not mean that assessee is not covered by the provisions of section 44AD of the Act. Moreover, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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