2021 (3) TMI 1012

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.... Act. 3. Facts of the case, in brief, are that the assessee is an individual and derives income from wholesale business. On the basis of the information obtained that the assessee has deposited cash of Rs. 12,07,200/- in savings bank account maintained with ICICI Bank Ltd., during the F.Y. 2010-11, the AO issued a query letter dated 18th January, 2018 to the assessee regarding source of above cash deposit. Since there was no reply filed by the assessee, the AO, after recording reasons, issued notice u/s 148 of the Act to the assessee on 27th March, 2018. In response to the said notice u/s 148, the assessee furnished his return of income on 16th October, 2018 declaring the total income at Rs. 1,57,440/-. The AO, thereafter, issued statuto....

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.... 7. The ld. Counsel for the assessee, at the time of hearing, did not press the legal ground challenging the validity of reassessment proceedings for which the ld. DR has no objection. Accordingly, the ground challenging the validity of reassessment proceedings is dismissed as not pressed. 8. So far as the merit of the case is concerned, the ld. counsel for the assessee, at the outset, drew the attention of the Bench to page 2 of the paper book which is the computation of total income and submitted that the assessee has declared gross receipt of Rs. 19,25,140/- and has offered income u/s 44AD by applying the net profit rate of 8.16%. Therefore, once the gross receipts are accepted and not disputed and such gross receipt is much more tha....

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....ppeal, the ld.CIT(A), after obtaining a remand report from the AO and rejoinder of the assessee to such remand report, deleted the addition to the extent of Rs. 4,90,200/- and sustained the addition of Rs. 3,67,000/- (wrongly typed as Rs. 3,62,000/-). It is the submission of the ld. Counsel that the gross receipt of the assessee shown at Rs. 19,25,140/- and profit declared u/s 44AD, by applying net profit rate of 8.16%, of Rs. 1,57,177/- has been accepted by the AO. It is his submission that once the total gross receipt is more than the total cash deposit in the bank account, no addition on account of unexplained cash deposit in the bank account should be made. 11. I find force in the above submission of the ld. Counsel. As mentioned ear....