The assessee, a sole proprietor running a petrol pump allotted...

The assessee, a sole proprietor running a petrol pump allotted by BPCL, deposited unexplained cash in the current bank account. The AO invoked Section 69A and made an addition, also invoking Section 115BBE. The Tribunal examined the monthly purchase and sales details, finding no major increase during demonetization. It concluded that the cash deposit was from the sale of petroleum products at the petrol pump. The assessee declared a net profit of Rs. 3,07,646 and a gross profit of Rs. 9,29,949 on gross sales of Rs. 3.23 crore. The books were audited, and quantitative records maintained. The gross profit margin at petrol pumps typically ranges from Rs. 1.5 to Rs. 3 per liter for petrol and Rs. 2 to Rs. 3 for diesel. The Tribunal found the net profit disclosed consonant with market practice and accepted it. It sustained the addition of Rs. 3,07,646 as net profit but deleted the remaining Rs. 2,59,70,084 addition. Since the cash deposits were from business activity, Section 115BBE was held inapplicable. The appeal was partly allowed.