https://www.taxtmi.com/caselaws?id=753114 The ITAT Delhi upheld the CIT(A)'s decision to treat unexplained cash deposits as business receipts under section 44AD, applying 8% net profit rate rather than treating entire deposits as undisclosed income. The tribunal rejected the Revenue's appeal, noting that when bank accounts show both credits and debits, peak credit method should be applied instead of adding entire deposits. The CIT(A)'s finding was supported by Investigation Wing reports confirming business activity. The tribunal emphasized that adding entire cash deposits while ignoring withdrawals would be unjustified, affirming the established legal principle for such cases. en-us Fri, 17 May 2024 00:00:00 +0530 Sat, 25 May 2024 08:08:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753114 The ITAT Delhi upheld the CIT(A)'s decision to treat unexplained cash deposits as business receipts under section 44AD, applying 8% net profit rate rather than treating entire deposits as undisclosed income. The tribunal rejected the Revenue's appeal, noting that when bank accounts show both credits and debits, peak credit method should be applied instead of adding entire deposits. The CIT(A)'s finding was supported by Investigation Wing reports confirming business activity. The tribunal emphasized that adding entire cash deposits while ignoring withdrawals would be unjustified, affirming the established legal principle for such cases. Case-Laws Income Tax Fri, 17 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753114