2021 (1) TMI 837

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....ays in filing this appeal. Therefore, there is reasonable cause for causing the delay. So, I condone the delay and admit the appeal. 3. The main grievance of the assessee is against the action of the Ld. CIT(A) in confirming the addition of Rs. 8,75,500/- made by the AO. 4. Brief facts of the case as noted by the AO is that the assessee has not filed his income tax return (ITR) for AY 2017-18. The AO issued notice u/s 142(1) of the Income Tax Act, 1961(hereinafter referred to as the "Act") on 15.03.2018 and directed the assessee to submit his return of income. According to AO , the assessee finally filed his return of income showing income of Rs. 2,86,934/-. The AO notes that the assessee had deposited cash to the tune of Rs. 17,01,00....

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....me liquid cash for day-to-day expenses, therefore Rs. 2,00,000/- is added to business income and computed u/s 44AD and Rs. 8,75,5000/- i.e. (Rs. 10,75,000/- minus Rs. 2,00,000) treated as unexplained money in absence of verifiable information or documents/evidences u/s 69A of Income Tax Act, 1961 and taxed thereon as per provision of section 115BBE. (emphasis given by me) 6. Thus, the AO made an addition of Rs. 8,75,500/-. Against the action of the AO, the assessee preferred an appeal before the Ld. CIT(A), which was dismissed. Aggrieved the assessee is before me. 7. I have heard both the parties and perused the records. The Ld. A.R of the assessee Shri Akkal Dudhwewala assailing the action of the AO drew my attention to para 12 of th....

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....83/- + Rs. 6,25,500/- + 2,00,000) out of total Rs. 59,46,583/- deposited in the bank account. According to Ld. A.R, the assessee's total turnover is less than Rs. 60 lakhs it attracts Section 44AD of the Act and therefore, as per law, the assessee is not required to maintain its books of account. According to Ld. A.R, a perusal of bank statement would reveal that there were regular bank deposits of cash and payment to the creditors (tea vendors). Moreover, my attention was drawn to pages 3 to 9 of the paper book wherein the assessee has kept the extracts of the daily bank book for the period between 01.04.2016 - 31.03.2017. The Ld. AR pointed out that the opening balance was to the tune of Rs. 4,83,122/- and there were several deposits and ....

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....mes to Rs. 59,46,583/- and out of which Rs. 50,71,083/- has been accepted by the AO as turnover from eligible business just because the assessee had with him an amount of Rs. 8,75,000/- specified notes which he deposited in the banks could not be taken adversely against the assessee. The assessee has demonstrated that he was into the business of tea-trading and as noted from the extracts of the daily bank book, the opening balance was to the tune of Rs. 4,83,122/- and there were several deposits and payments/withdrawals regularly and the peak credit in the bank book on 30.04.2016 was to the tune of Rs. 5,10,109/-, which commensurate with the daily bank balances during the period 08.11.2016 to 30.12.2016, which were in the range of Rs. 2,39,....