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of <h1>Tribunal deletes Section 43CA additions, rejects profit estimations, removes unexplained cash deposits during demonetization</h1> <h3>Anil Kumar Paik C/o S.N. Ghosh & Associates, Advocates Versus ACIT, Circle-8 (1), Kolkata</h3> Anil Kumar Paik C/o S.N. Ghosh & Associates, Advocates Versus ACIT, Circle-8 (1), Kolkata - TMI Issues Involved:1. Addition under Section 43CA.2. Estimation of net profit in real estate business.3. Estimation of net profit in liquor business.4. Addition for unexplained cash deposits during demonetization.5. Estimation of income for clearing and forwarding agent business.6. Addition under Section 68 for unexplained cash credit.Summary:1. Addition under Section 43CA:The Tribunal found that the flats sold during the year were originally agreed to be sold during FY 2011-12, with part payment received through account payee cheques. Since Section 43CA of the Income Tax Act, 1961, was inserted w.e.f. 01/04/2014, it was not applicable to these transactions. The Tribunal deleted the addition of Rs. 1,67,44,907/-.2. Estimation of net profit in real estate business:The Tribunal noted that the Assessing Officer had not rejected the book results under Section 145(3) of the Act and had estimated the profits merely on surmises and conjectures. Consequently, the addition of Rs. 17,45,120/- was deleted.3. Estimation of net profit in liquor business:The Tribunal observed that the Assessing Officer failed to reject the book results before estimating the profits of the liquor business. The estimation was based on surmises and conjectures without evidence. The addition of Rs. 1,20,47,747/- was deleted.4. Addition for unexplained cash deposits during demonetization:The Tribunal found that the assessee had sufficient cash in hand as on 08/11/2016, which was utilized for making the deposits. The cash books were regularly maintained, and the nature and source of the cash credit were satisfactorily explained. The addition of Rs. 67,94,000/- was deleted.5. Estimation of income for clearing and forwarding agent business:The Tribunal noted that the assessee was a clearing and forwarding agent and only recorded commission income in books, while actual sales were accounted for in the books of the principal company. The addition of Rs. 49,11,694/- was based on surmises and conjectures and was deleted.6. Addition under Section 68 for unexplained cash credit:The Tribunal found that the assessee had successfully explained the nature and source of the alleged sum. The transaction was genuine, with the identity and creditworthiness of the creditor not disputed. The addition of Rs. 1.65 Crores under Section 68 was deleted.Conclusion:The appeal of the assessee was allowed, and all the additions made by the Assessing Officer were deleted.
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