2018 (6) TMI 1397

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.... treated all the withdrawals by cheque from these undisclosed accounts as undisclosed sales and cash withdrawals were treated as undisclosed income of the assessee. Upon treating the cheque withdrawals as unaccounted sales, the Assessing Officer clubbed the sales with the turnover declared by the assessee in respect of his business concern and applied a profit rate of 8% to the total turnover. The said assessment order was contested before the First Appellate Authority, Commissioner of Income Tax (Appeals). Main case of the appellant before the CIT(Appeals) was that there was no basis for computation in such manner. The Appellate Authority modified the Assessing Officer's finding and held:- "Though cash withdrawals does not nece....

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....ddition gets modified." As a consequence of the order of the first Appellate Authority, the tax liability stood reduced. Before the Tribunal the appellant-assessee questioned the basis of arrival by the First Appellate Autority of the profit figure at the rate of 25% of total deposit. The Tribunal in its decision confirmed the finding of the CIT(Appeals). The Tribunal held:- "The second contention raised by the ld. counsel for the assessee is that the estimation of the income of the assessee from undisclosed transactions as made by the ld.CIT(Appeals) at 25% of the total deposits found to be made in the undisclosed Bank accounts on the basis of cash withdrawals is on the higher side. In this regard, he has pointed out that th....

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....sonal expenses and personal investment by the ld.CIT(Appeals). However, the same have not been taken into consideration separately by the ld.CIT(Appeals) while estimating the income of the assessee at 25% of the total deposits on the basis of the quantum of cash withdrawals. This again goes to prove that all other aspects of the matter including the adverse findings given by him were taken into account by the ld.CIT(Appeals) while estimating the income of the assessee at 25% of the total deposits found to be made in the undisclosed Bank accounts of the assessee. Having regard to all these facts and circumstances of the case, we are of the view that the estimate made by the ld. CIT(Appeals) of the income of the assessee from the transactions....