Presumptive taxation for transport business: cash deposits treated as business receipts, not unexplained income.

Cash deposits in the bank account of a transporter engaged as a fleet owner of four commercial vehicles were treated as business receipts rather than unexplained income, because the assessee fell within the presumptive assessment scheme under section 44AE. On that factual footing, the deposits were not viewed as a separate unexplained source warranting addition in the assessed income. The addition was therefore set aside, and the matter was to be given consequential effect in accordance with law on the basis that the assessee is covered by the presumptive regime.

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Issues: Whether the cash deposits found in the assessee's bank account were to be assessed as unexplained income, or whether they were to be treated as business income of a transporter covered by the presumptive scheme under section 44AE.

Analysis: The assessee was shown to be engaged in transport business as a fleet owner of four commercial vehicles. In that factual backdrop, and in view of the presumptive regime applicable to such business, the deposits were regarded as part of the business receipts/income rather than as a separate unexplained source warranting addition in the assessed income.

Conclusion: The addition of cash deposits was set aside and the matter was directed to be dealt with consequentially in accordance with law on the footing that the assessee falls within the presumptive assessment scheme.

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