AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (10) TMI 697
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....IT(A) has grossly erred in accepting the contention made by the assessee that total cash deposited in bank may be treated as business receipt and applied provision of section 44AD, and total business profit may be taken @8% of the total receipts/ deposits as against the addition made u/s. 68 on account of cash deposit of Rs. 36,14,384/-, without appreciating the fact that assessee failed to substantiate her claim regarding cash deposits of Rs. 36,14,384/-. The appellant craves, leave to add or amend or modify the grounds of appeal at any time. It is prayed that the order of the CIT(A) is contrary to the facts on record and the settled position of law; and the order of the AO deserves to be restored. 2. The brief facts of the case a....
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....e assesse it was observed that the assessee has not declared the business income in her e-filed return. Later on during the course of assessment proceedings the assessee declared that she was doing business also. But in her return of income she declared only salary income and in her statement also she stated that she was taken salary of Rs. 1,44,500/- from M/s Kapoor Goyal & Co. which is a CA firm and Counsel of the assessee is also from the same CA firm. After examining the above details, it was observed that a lady who is doing full time job at above mentioned CA firm how can operate a business covering all India stations. AO observed that it is not possible to manage the business activity routed through different places in India. Further....
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....nment by the Department. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, I am of the view that no useful purpose would be served to issue notice again and again to the Revenue, therefore, I am deciding the present appeal exparte qua Revenue, after hearing the Ld. Counsel of the Assessee and perusing the records. 6. Ld. Counsel of the Assessee has relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order which does not need any interference on our part, hence, the same may be upheld and accordingly, the appeal of the Revenue may be dismissed. 7. I have heard the Ld. Counsel of the assessee and perused the records, especially the impu....
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....that the appellant was doing sale/purchase of auto tyres during the relevant period. The cash deposits and withdrawals are found to be in the range of Rs. 4,OOO/- to Rs. 50,OOO/-. {5.5} Taking into the facts and circumstances of the case following 3 alternatives have emerged; 1. Scenario No.1: Treat the entire cash found deposited in the undisclosed bank account as unexplained u/s 69 of the Act and tax accordingly. (undisclosed income; Rs. 36,14,384/-) 2. Scenario No.2: Take the cash receipts as business receipts and accordingly estimate gross Profit rate as under; i. At the rate of 8% of the gross receipt as per section 44AD then the income comes to Rs. 2,89,150/- ii. If The Hon'ble High Court of Gujarat in the case of CIT ....
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....sly and very frequently. {5.5.3} That leaves Scenario No.2 as the most reasonable scenario in determining the profit in the present case. In this regard it is worthwhile to take a cue from the judgment in the case of THE INCOME TAX APPELLA TE TRIBUNAL (DELHI BENCH 'D " NEW DELHI) I.T.A. No. 2410/Del/2013 Assessment year: 2009-10 Shri Kayyum Ahamed, Date of pronouncement: 22.05.2015 During the year under consideration, the assessee claimed that due to fault in the data in computer, the balance sheet and P & L account prepared and submitted to income tax Department contained wrong figures. We find that the A.O. on the basis of the figures contained in Form 26AS had cornered the assessee and, therefore the assessee had Prepared....
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....er can only be taxed. The assessee did not produce vouchers / bills to support the increase in expenditure in his revised P & L account. Therefore, instead of 8% of turnover to be included as profits on undisclosed turnover, we hold that an amount equivalent to 12% of turnover be included in the income of the assessee. In view of the above, the A O. is directed to delete the addition on account of unrecorded turnover and instead, make an addition equivalent to 12% of undisclosed turnover. In the present case, although the appellant has not disclosed the income from the business in her return of income filed for A Y 2009-10 and it is only after the AO has unearthed the undisclosed bank accounts and confronted with the facts, that the appe....