TaxTMI 
TaxTMI 
2016 (4) TMI 422
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....on to the provisions of section 44AD. 2) Agreeing with the AO on total estimated turnover of Rs. 36,05,497/- based on bank deposits whereas these deposits included the amount withdrawn and then again deposited. 3) Ignoring the amount of Rs. 14,47,345/- withdrawn and then redeposited and has erred in adopting the total deposit in the bank at Rs. 36,05,497/- which is incorrect and wrong since these included the amount withdrawn. 4) In not adopting the profit rate as per the provision of section 44AD and applying 20% arbitrarily which is against law. 5) In treating the amount of Rs. 36,05,497/- as turnover. 6) In not adopting the amount of turnover rin profit and loss account filed during the assessment proceedings. 7) Passin....
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....made out of the withdrawals from the banks on various dates. Further, the Assessing Officer noticed that out of purchase parties shown in re-casted trading account, only one party M/s. S.K.International could be verified and in respect of other parties, the assessee even could not produce purchase bills etc. The Assessing Officer also could not verify the other parties through notices issued u/s 133(6) of the Act. The Assessing Officer did not accept the submission of the assessee that cash sales were only of Rs. 19,03,152/- . According to him, the entire deposit of Rs. 36,05,497/- in the bank account were in the nature of the cash sales. He further applied net profit rate of 20% as was shown by the assessee in the return of income filed an....
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...., the profit rate of 8% should have been applied in place of profit rate of 20% applied by the AO. The ld AR further submitted that the CIT(A) has not given any comparable case where profit rate of 20% in retail business exists. 4.2 The ld. Senior Departmental Representative ( Sr DR) on the other hand, relied on the order of lower authorities and submitted that in absence of any proof or evidences in the hands of the assessee that money withdrawn was redeposited in bank accounts, the sales of the assessee cannot be limited to Rs. 19,93,152/- . She further submitted that it was the onus on the assessee to submit evidence in support of his claim of re-deposit of money in bank and in failure to do so, the Assessing Officer has correctly tak....
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....n behavior that no prudent person will withdraw the money and re-deposit into banks without any justified reasons. In view of the circumstances of unverified purchases, cash sales and expenses of the business activity etc, we don't find any justification in submissions of the assessee in this regard, and in our opinion , the CIT(A) has rightly held entire cash deposits as business receipts of the assessee. The findings of the CIT(A) on the issue of sales receipt are well-reasoned and there is no infirmity in the said findings. Accordingly, we dismiss the grounds No. 2,3, and 5 to 7 of the appeal. 6. In respect of balance grounds No. 1,4 and 8 of the appeal , the assessee has raised that the Assessing Officer has applied net profit rate o....