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of <h1>Unexplained cash deposits in presumptive taxpayer held prima facie business income; AO to assess at 8% under Sections 68, 69</h1> ITAT (DELHI - AT) held that unexplained cash deposits in an assessee already assessed on presumptive basis u/s 44AD prima facie represent business income; ... Addition u/s 68/69 - unexplained cash deposits - assessee has already been assessed for the turnover on presumptive basis u/s 44AD - HELD THAT:- This being the case, the necessary presumption which flows in the given facts is that assessee’s cash deposits also prima facie represent his business income only. Accordingly deem it appropriate in the larger interest of justice to direct AO to assess the assessee’s cash deposit at the very rate of 8% as corresponding business receipts only. Assessee’s appeal is partly allowed. Appeal under proceedings u/s 147 read with section 143(3) (AY 2012-13) challenges NFAC, Delhi order upholding assessment of cash deposits as unexplained u/s 68/69. Assessee proceeded ex parte. Revenue relied on earlier assessment treating turnover of 'Rs. 59.92 lakhs on presumptive basis u/s 44AD.' Tribunal notes that, given that earlier presumptive assessment, the 'necessary presumption' is that the assessee's cash deposits 'prima facie represent his business income only.' On that basis, Tribunal directs the Assessing Officer to assess the cash deposits 'at the very rate of 8% as corresponding business receipts' and carry out necessary computations as per law. Appeal is partly allowed to that extent.
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