TaxTMI 
TaxTMI 
2017 (11) TMI 1063
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....on liquor receipt of the assessee. (iii) deleting the addition of Rs. 1,09,01,000/- made by the AO u.s 68 of the IT Act on account of unexplained cash deposits in the bank account since no documentary evidence has been produced by the assessee either bore AO or even before Ld. CIT(A) to substantiate his explanation regarding nature and sources of cash deposit of Rs. 1,09,01,000/- in his bank account; (iv) deleting the addition of Rs. 14,00,000/- made by the AO u.s 68 of the IT Act on account of unexplained cash deposits in the bank account since no documentary evidence has been produced by the assessee either before AO or even before Ld. CIT(A) to substantiate his explanation regarding nature and sources of cash deposit of Rs. 14,00,000/- in his bank account; (v) deleting the addition of Rs. 2,10,580/- made by the AO on account of unexplained loans given to various persons since the assessee never raised the contention before AO or even ld. CIT(A) that he had given loans of Rs. 2,10,580/- out of his unaccounted income mentioned in the order of AO or Ld. CIT(A); 2. Ground No. (i) regarding restricting the disallowance of expenses made by the AO in the t....
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....tion made by the AO of Rs. 10,01,460 as against Rs. 34,00,216/- made by the AO. Thus the ld. CIT(A) has deleted the addition/ disallowance to the tune of Rs. 23,98,756/-. Aggrieved by the order of the ld. CIT(A), the Revenue of this appeal. 3. Before us, the ld. DR has submitted that when the assesseee has not produced any books of account or any supporting documents then the claim of the assesseee is not acceptable. The Assessing Officer has clearly stated in the assessment order that the assessee has failed to produce books of accounts as well as bills, vouchers in support of the expenditure. Hence, disallowance made by the AO at 10% of the transportation expenses, 20% of conveyance petrol, telephone, Mobile depreciation and vehicle loan expenses due to the personal use of the telephone and mobile as well as vehicles is justified. Further, when the assessee has not produced any evidence then the claim of salary to driver and other staff including staff welfare expenses cannot be allowed and therefore, the Assessing Officer has disallowed the claim of the assessee in full. He has relied upon the order of the Assessing Officer. The ld. DR has further submitted that the ld. CIT(A....
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....aken as accepted net profit for the purpose of scrutiny assessment made by the AO in the year under consideration. The Assessing Officer has disallowed various expenses and some of the expenses were disallowed to the extent of 10% of total expenses and others were disallowed to the extent of 20% whereas some other expenses claimed on account of salary to the driver and other staff has been disallowed in toto. Though the assessee could not produced the supporting documents as well as books of accounts however, when the Assessing Officer has not invoked the provisions of section 145(3) then the decision relied upon by the assessee cannot applied in the case of the assessee. The AO was framed the order u/s 144 however, the Assessing Officer did not resort to the provisions of section 145(3). Therefore, there is no illegality in the action of the AO in disallowing the claim of expenditure under each head. The CIT(A) after considering the previous history of declared total income estimated the income @ 5%. We find that the estimation of income may be adopted in the case when the assessee has not produced any supporting evidence and to bring the controversy to an end. There is no dispute....
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..... 1,09,01,000/-. The ld. CIT(A) accepted the explanation of the assessee that a sum of Rs. 34 lacs deposited in cash was shown with a description sale proceeds of food soyabeen. Further, the ld. CIT(A) has noted that the estimated cash turnover of the assessee was around to Rs. 8.22 crores and therefore, it can be reasonably presumed that the balance amount of Rs. 63 lacs were deposited out of agriculture produced sale, cash receipts from wine and transport business. Accordingly, the ld. CIT(A) directed the AO to delete the addition of Rs. 97 lacs. As regards the deposit of Rs. 12.01 lacs the ld. CIT(A) given the benefit of a telescopic as it had sustained the addition to the tune of Rs. 18,08,142/-. 8. Ground No. (iv) regarding disallowance made by the AO on account of unexplained cash deposit in the bank of Rs. 1,4,00,000/- which was deleted by the ld. CIT(A). The ld. DR has submitted that during the assessment proceedings the AO found from the CBDT information of the assessee that a cash of Rs. 14 lacs has been deposited in the bank account during the year. The AO asked the assessee to explain the sources of these deposits and in the absence of any explanation or evidence why....