Addition of aggregate of cash as well as cheque deposit in the ...

Taxation on Undisclosed Business: Only 7% of Bank Deposits Taxable as Profit, Not Full Amount.

September 23, 2022

Case Laws     Income Tax     AT

Addition of aggregate of cash as well as cheque deposit in the bank account of assessee - the assessee was doing some business activity, though it was not disclosed to the department. In my view, taxing the entire credit is not justified, thus, it would be justified if only profit element in such business activities from where the assessee generated the credit found in the bank account. Therefore, 7% of total addition is considered as profit from such business activities. - AT

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