2025 (8) TMI 1029 - AT - Income Tax

Challenge to double addition of Form 26AS figures allowed for statistical purposes; AO to re-verify, cash deposits taxed at 10%

ITAT allowed the ground challenging double addition of corresponding Form 26AS figures, directing the AO to carry out fresh factual verification; that ... Double addition of Form 26AS figures, cash deposits addition added as an unexplained and net profits @ 10% on gross receipts HELD THAT:- Double addition of the corresponding Form 26AS figures is concerned, the same more require s the learned Assessing Officer’s afresh factual verification to this effect. This ground is accordingly accepted as allowed for statistical purposes. Cash deposits addition wherein the Revenue’s vehement contention is that the assessee could not explain source thereof and therefore, the same deserves to be upheld. The Revenue could hardly dispute that the assessee has been already assessed @ 10% of her other gross receipts. The only inference which arises in such a situation that the assessee’s cash deposits infact are her undeclared business receipts only which also deserve to be assessed @ 10%. AO Officer is accordingly directed to finalize his consequential computation in very terms. Assessed the assessee @ 10% - Given the fact that she has failed to plead and prove the audited book results as representing correct sate of affairs, find no merit in the instant last ground. Rejected accordingly. This appeal for AY 2012-13 arises against an order passed in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961. The assessee raised three issues: alleged double addition of Form 26AS figures; cash deposits of Rs. 16,53,000 added as unexplained; and application of net profits @ 10% on gross receipts of Rs. 12,45,190. The Tribunal held the first ground requires fresh factual verification by the Assessing Officer and therefore the ground is 'allowed for statistical purposes.' On the cash deposits, the Tribunal found that, since the assessee was already assessed @ 10% on other gross receipts, the only inference is that the cash deposits are 'undeclared business receipts' and directed the Assessing Officer to assess them at 10% and finalize consequential computation. The challenge to assessment at 10% was rejected because the assessee 'failed to plead and prove the audited book results as representing correct state of affairs.' Appeal was partly allowed.