TaxTMI 
TaxTMI 
2016 (6) TMI 429
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....eals, we refer to the facts from ITA No. 1046/Hyd/2013. 3. Briefly the facts of the case are that for AY 2003-04, the assessee filed his return of income on 23/02/2014 declaring an income of Rs. 3,62,906/- deriving income from house property at Rs. 2,14,072 and income from trading from bamboo ballies admitted at Rs. 1,48,834 which was estimated at 5.25% on the turnover in accordance with the provisions of section 44AF of the Income-tax Act, 1961 (in short the 'Act'). Agricultural income was declared at Rs. 55,495/-. 3.1 The AO after verification of the bank accounts and the return of income filed, found that an amount of Rs. 45 lakhs deposited with State Bank of Hyderabad, Exhibition Grounds Branch, Hyderabad was not properly explained. A....
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....cited by the ld. AR in the above paragraphs also support my view that no penalty is leviable in such circumstances." 5. Aggrieved, the Revenue is in appeal before us raising the following grounds of appeal: "1. The decision of the CIT (Appeals) is erroneous in law as well as on facts. 2. The CIT(A) failed to appreciate that in the facts and circumstances of the case the assessee could not produce any proper evidence regarding the source of deposits made into the bank which was also one of the main grounds on which the assessee's appeal for quantum addition was dismissed by the appellate authorities. 3. The CIT(A) overlooked the fact that the quantum addition was made as the genuineness of the transaction as well as the agreeme....
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....ver and admitted income of Rs. 1,48,634/-. The AO had converted the case to scrutiny and completed the assessment on 23/03/2006. Subsequent to first round of appeal and as per the direction of ITAT, the reassessment was completed u/s 143(3) r.w.s. 254 on 30/12/2008. The AO determined the total income at Rs. 48,94,600/-. Only in the second round of assessment, AO resort to verify the genuineness of the agreement filed by the assessee in support of the short term deposits made. Ld. AR submitted the details of three deposits made and subsequently renewed for short period of 15-20. Ld. AR also submitted that the business model of the assessee is to take advance from the buyers and pays to sellers advance for blocking the bamboos. Assessee was p....
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....e-assessment proceedings. This is substantial time lag and the probability of movement of persons during this period is too high. 9. On analysing this case, the assessee is a small trader involved in bamboo business and filed his return of income by estimating the income u/s 44AF. Therefore, the assessee is not required to maintain any books of account as per the provisions of section 44AF and relaxation available to these kind of assessees. Hence, the assessee had filed the return of income and AO has not found any mistake or not found any discrepancies in the return of income, in this regard, the concealment of income is ruled out. Coming to the submission of inaccurate particulars, AO had sent the notice u/s 143(2) asking for informatio....