2016 (2) TMI 1274

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....sale of mixer-grinders Rs. 4,50,000/-.   2. We heard the parties and perused the record.  The assessee filed return of income for the year under consideration declaring a total income at Rs. 1,17,004/-.  During the course of assessment proceedings, the AO recorded a statement on oath from the assessee with regard his business activities. Further the AO had also received AIR information to the effect that the assessee has deposited a sum of Rs. 10,89,000/- by way of cash in a bank account maintained with State Bank of India.  The AO assessed the entire amount of cash deposit of Rs. 10,89,000/- as income of the assessee under section 68 of the Act.  In the statement recorded from the assessee, he has stated that he....

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.... and withdrawals, we are of the view that the ld. CIT(A) was justified in considering the bank deposits as relating to business transactions.  However, we are unable to understand as to why he considered them as relating to spare parts business and not related to mixer grinder business.  Be that as it may, we notice that the Ld CIT(A) has estimated the rate of profit on the basis of statement given by the assessee and hence we do not find any reason to interfere with his order on this issue.    5. The next issue relates to estimation of income from sale of mixergrinder.  We notice that this addition has also been made on the basis of statement given by the assessee, wherein he had stated that he is selling approx....

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....ions relating to spare parts business alone.  In our view, the possibility of depositing the sale proceeds relating to mixer grinders cannot be ruled out.     8. Accordingly, we are of the view the income of the assessee has to be estimated by considering all the facts in a holistic manner. Accordingly, we proceed to estimate the profit of assessee as under: (a) We adopt the net profit on sale of one piece of mixer-grinder at Rs. 225/- after allowing administrative expenses @ 30%, i.e., Rs. 75/- per mixer-grinder. Accordingly, the profit earned from sale of mixer- grinder shall be (1500 x Rs. 225/-=3,37,500).     (b) The income from sale of spare parts business is estimated at Rs. 65,0....