TaxTMI 
TaxTMI 
2013 (1) TMI 909
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....erein grounds No.1 and 3 are general in nature and do not survive for adjudication. Ground No.2 raised by the assessee is reproduced herein under: "2. On the facts and in the circumstances of the case, the Ld. CIT(Appeals) has grossly erred in not estimating reasonable profit on the total credits of undisclosed bank account. He has grossly erred in taking peak as well as so-called unexplained cash deposit and adding 5% of profit of the total credits. The total of all 3 aspects worked out to Rs. 15,32,778. He ought to have estimated the profit of the total credits appearing in the bank account considering it as turnover of the business. Accordingly the AO may be directed to take reasonable profit @ 5% of the total credits conside....
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....sactions effected by him as stated above. (iv) It is not possible to prove all the transactions recorded in the bank statement because proper records were not maintained. 3.2 With these submissions the assessee had argued before the learned CIT(A) that the aggregate of the credit side of the bank statement may be taken as the total turnover of the assessee and a reasonable profit of 5% may be estimated to be the income of the assessee. 3.3 The learned CIT(A) considering the submissions of the assessee and the observations made by the learned AO, restricted the addition to Rs. 15,32,778/- and thereby partly allowed the appeal of the assessee. The findings of the learned CIT(A) in Para 2.3 of his order is reproduced herein unde....
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....d paid to Bhagwati Caterers Private Ltd. The appellant has not explained as to for what purpose the assessee had paid the amount of Rs. 6 lakh. Since the appellant has not explained this payment, therefore, it is clear that this amount of Rs. 6 lakh is no more available to the appellant. Thereafter, it is seen that there is a peak deposit of Rs. 7,03,440/- on 21/12/2006. Prior to that also the credit balance had increased to Rs. 5,94,935/- on 19/10/2006 and also the credit balance of Rs. 5,65,256/- on 25/07/2006. Since there are various cash withdrawals and cash deposit and since the assessee has been dealing in trading of old cars, as well as earning commission the theory of peak addition plus profit on the entire transactions would be the....
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....Pvt. Ltd. Rs.6,00,000 (ii) Peak credit Rs.7,03,440 (iii) 5% profit on aggregate turnover of Rs. 45,76,131/- admitted by the assessee Rs.2,29,338 Total Rs.15,32,770 On analyzing the bank statement, we find that the opening balance of the bank as on 01-04-2006 is Rs. 3,05,778.82 and the closing balance as on 31-03-2007 is Rs. 2,95,150.82. Thus, there is an erosion of capital for Rs. 10,628/-(Rs.3,05,778.82 - Rs. 2,95,150.82). Further, the total aggregate of the credit side of the bank statement amounting to Rs. 45,76,131.20 also includes the commission earned by the assessee from purchase and sale of second hand cars apart from the entire sale consideration received from sale of second hand cars w....