TaxTMI 
TaxTMI 
2012 (5) TMI 332
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.... are common and facts are identical, we dispose of these appeals by this common order for the sake of convenience. 2. The only issue in these appeals of assessee is against order of CIT(A) confirming the action of Assessing Officer in making addition of bank deposits u/s 69 of the Act which are having direct nexus with receipts of the assessee being assessed under section 44AF of the Act. For this, assessee has raised following common grounds for all three assessment years: "1. That, on the facts and in the circumstances of the case, the order of Ld. CIT(A) was perfunctory, casual and not based on consideration of relevant and material facts. 2. That, on the facts and in the circumstances of the case, the order of CI....
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....s identified or even mentioned and bank deposits would not be held as expenditure unexplained." 3. We have heard rival submissions and gone through facts and circumstances of the case. We find that assessee is engaged in the business of supply of building material on retail basis and submitted its return of income as on 31.03.2004, 16.11.2005 and 31.03.2007 for the relevant assessment years 2003-04, 2005-06 and 2006-07 under section 139(4) of the Act. Assessing Officer issued notice under section 148 of the Act on 25.02.2008 in these three years and assessee replied that returns filed originally be treated as return filed in response to the notices under section 148 of the Act. Subsequently, notices under section 143(2) of the Act w....
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....atement for assessment year 2004-05 for which deposits added by AO are merely Rs.72,617/- and the turn over is at Rs.8,01,748/-. Similarly deposits and withdrawal given by assessee are as under:- Assessment Year Total Deposit (Rs.) Total withdrawal (Rs.) Difference 2003-04 ----- ---- Bank could not furnish the statement for this period 2005-06 1468750.00 1483930.00 2006-07 433042.00 444205.00 5. Further, assessee's contention was that out of the deposits, Rs.668250/- and Rs.318009/- respectively for assessment years 2005-06 and 2006-07 are by clearing cheques and balance of deposits represents deposits in cash by way of business receipts. It was argued before us that for assessment year 2005-06 and 200....
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....the applicability of this provision, books of accounts need not be maintained but income is to be assessed on the basis of turn over and in case turnover is below Rs.40 lacs, the provisions will apply for all above three assessment years. The assessee showed deemed profit and it is not the case for making separate addition of bank deposits which have direct nexus with sales and purchases. For this, our reasoning is that turn over and deposits are almost co-relating in all the three years. We find that in assessments order it clearly shows that additions of bank deposits are on the basis of business receipts and withdrawals for business payment but neither AO nor CIT(A) have not brought any material on record to show or indicate that there i....
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....anything to the contrary contained in ss. 28 to 43C of the Act. This income is to be deemed to be the profits and gains of said business chargeable of tax under the head "Profits and gains of business". However, the said provisions are applicable where the gross receipts paid or payable do not exceed Rs.40 lacs. 8. Once under the special provision, exemption from maintaining of books of account has been provided and presumptive tax @ 8 per cent of the gross receipts itself is the basis for determining the taxable income, the assessee was not under obligation to explain individual entry of cash deposit in the bank unless such entry had no nexus with the gross receipts. The stand of the assessee before CIT(A) and the Tribunal that the....