TaxTMI 
TaxTMI 
2019 (12) TMI 1112
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....retail trading on the basis of turnover, which is not disputed by the AO or the CIT(A) and has shown net profit @ 10% which is much higher than the minimum of 5% as has been provided under the statute." 4. Ld counsel for the assessee submitted that the ld CIT(A) has erred in resorting to weightage average method when the assessee has shown gross receipts from retail trading as turnover and on the basis of such turnover, the authorities below have estimated @ 10% of the turnover, which is higher than the minimum of 5% as has been provided under the provisions of the Act. Ld counsel submitted that the assessee has shown income as per provisions of section 44AF of the Income tax At (in short 'the Act') in which she is required to maintain t....
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....r profession". This provision applies only to the assessee whose turnover is less than Rs. 40 lakhs during the previous year. 7. In the present case, the assessee filed her return of income showing total income of Rs. 3,45,312/- as income from business and professions without any further addition. However, the AO made an addition of Rs. 5,02,307/- by observing that during the course of survey u/s.133A of the Act, a stock of silver ornament was found in the business premises of M/s. Parbati Jewellers, a proprietor firm of the assessee. From the relevant assessment as well as first appellate order, I find that the authorities below have not show caused the assessee before making the addition on this count. Further, undisputedly, for the re....
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....ar i.e. on 1.4.2009 otherwise, addition on account of closing stock cannot be made in the hands of the assessee especially when the assessee herself is showing higher percentage of net profit on the turnover undertaken during the relevant financial period. Accordingly, Ground No.B is allowed. 8. Ground No.C reads as under: " For that the ld CIT(A) has erred in confirming the addition on account of unexplained investment to the tune of Rs. 17,76,662/- on the flimsy ground that the appellant could not produce any evidence before the CIT(A) to justified the source of such income, when the appellant in the written submission had in fact deliberated in detail regarding the source of the same." 9. Ld counsel for the assessee submit....
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....nts of the assessee, in natural course, came into the hands of the assessee, which forms a substantial source for investment. Ld counsel further submitted that on 27.7.2005, the assessee had sold a property at Badahat, Kendrapara to one Manoj Kuma Sahoo for an amount of Rs. 2,78,000/-, out of which amount, a part has been flowing in the credit of the assessee. Thus, this is also another resource for enabling the assessee for making the impugned investments. Copy of sale deed is also on record as Annexure-3. Ld counsel further submitted that the AO has referred to an amount of Rs. 3,26,832/- paid to Bajaj Allianz. As perusal of the relevant bank statement reveals that this amount was received of the assessee for her bank account on 27.4.2....
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....so died on 21.1.2014. iv) Legal heir certificate shows that the assessee is the only legal heir of her parents and obviously in the natural course of practice all movable and immovable property has to be divulged in the hands of the assessee. v) From copy of sale deed available at assessee's paper book Annexure-3, it is gathered that the assessee has sold the property to Manoj Kuma Sahoo for a consideration of Rs. 2,78,000/- which is part of amount of savings in the credit of the assessee, which cannot be ignored while making allegation of unexplained investment. vi) From the copy of bank statement of the assessee at Annexure-4, I observe that the amount of Rs. 3,26,832/- has been transferred to ICICI Bank and aga....