TaxTMI 
TaxTMI 
2013 (11) TMI 62
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.... appeals are as under:- Grounds of ITA No. 334/Ahd/2013 "(1). That on the facts and circumstances of the case, the learned CIT (A) has grossly erred in rejecting the returned income as declared by the appellant under presumptive basis under Section-44AF of the I.T. Act on various baseless allegations and thereby passing assessment order U/s-144 of the Act. (2). That on the facts and circumstances of the case, the learned CIT (A) has grossly erred in making additions of undisclosed income of Rs.12,08,976/- determined on the basis of highest peak balance on particular date of the two banks maintained by the appellant. ADDITIONAL GROUND OF APPEAL The learned A.O. has made the addition of Rs.12,08,976/- without rejecting books of accounts ....
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.... return of income on 25.03.2010 in case of Dilipkumar Thakkar, on 16.03.2010 in case of Chandrika D. Kumar Thakkar and on 16.03.2010 in case of Binita K. Thakkar, declaring total income of Rs. 2,39,970/-, Rs. 2,42,910/- & Rs. 2,41,670/- respectively. The cases were selected for scrutiny u/s. 143(3) on the basis of AIR information. The assessee had deposited cash of Rs. More than Rs. 10 lacs in their bank accounts of Bank of Baroda and purchased immovable property valued at Rs. 40,01,000/- alongwith other co-owner, namely, Smt. Chandrika D. Kumar Thakkar and Smt. Binita K. Thakkar. The detailed questionnaires were issued in all the cases during the course of assessment proceeding and reasonable opportunity was given to all the assessee. The ....
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....t all seller parties return of income were filed by the A.R. of the assessee. Therefore, it may be possible the A.R. of the assessee was give facility to the assessee to rotating his undisclosed fund through above six persons. v. The assessee also mentioned that he runs his business activity from his residence. The residence of the assessee is not in market area, and the same come under pure residence zone, therefore, the claim of the assessee sale of saree and dress materials is not reliable." The A.O. made addition of Rs.12,08,996/- under the head 'undisclosed income' determined on the basis of peak balance and gross profit after peak balance at Rs. 2,08,729/-. The finding in case of Smt. Chandrika D. Kumar Thakkar is as under: "i. Th....
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....s profit after peak balance at Rs. 15,956/-. The finding in case of Smt. Binita K. Thakkar is as under: "i. The assessee has received loan from three persons Mr. Dilipbhai Thakkar- Rs.100000/-, Mr. Bharat Thakkar- Rs. 50,000/- and Mr. Bharat Vasantlal Thakkar(HUF)- Rs.125000/-. But it was found, after verification of the account details of all three persons (lender), that they had deposited cash of Rs.365000/- in their bank accounts before issuing the cheque to the assessee. Therefore, it is clear that the cash deposited by the said lenders was brought from their undisclosed sources. ii. During the year the assessee was purchase immovable property, and made payment from bank accounts. It is pertinent to note that the before issuing the c....
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....ale proceeds of sarees, which should have regular pattern. c. The opening cash balance of Rs.15,03,853/- is unrealistically high for the claimed turn over of Rs.32.98 lakhs and returned income of Rs. 2.4 lakhs. d. The appellant claimed in the return of income filed, that he is not maintaining books of account. Therefore, the arguments made subsequently at the assessment stage and appellate stage that he maintained the various register/s goes against the appellant's statement in the return of income. Needless to say, the appellant has not shown the gross profit and turnover in the return and the relevant column which is mandatory for filing of return u/s 44AF of the Income Tax Act. e. It is not a clerical mistake of omission as claimed by....
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....that the ld. A.O. issued summon u/s. 131 to six parties. Shri Nagraj Jain had confirmed the transactions with them. The assessee had submitted cash book, ledger, purchase register & sale register to A.O. Other family members were also in the saree retail business. The peak credit theory normally applied to non- genuine entries and not to genuine ones. Where there are many credits, all treated as non genuine. Withdrawals from one account should be treated as available for credit in another. He filed affidavits in all cases and claimed that they were doing business from A.Y. 06-07, 07- 08, 08-09 till the year under consideration. He has also drawn our attention on CBDT Circular No. 5 of 2010 dated 3rd June, 2010 for special provision for comp....