2021 (4) TMI 154

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.... the case are that the assessee is proprietor of Mohan Dairy, Tijara, Alwar and is in diary business. As per ITS details available with the Department, it was found that the assessee had made cash deposit of Rs. 4,00,000/- during the F.Y 2010-11 relevant to A.Y 2011-12. Given that the assessee has not filed his return of income, the Assessing Officer recorded the reasons for reopening stating that the assessee's income to the extent of Rs. 4,00,000/- has escaped assessment and notice u/s 148 was issued after seeking approval from the Competent authority. In response, the assessee filed his return of income declaring gross receipts of Rs. 14,56,230/- from his dairy business and declared 9.28% of gross receipt as income as per provisions of s....

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....h/2019 dated 15.11.2019). 4. Per contra, the ld. DR submitted that it is not disputed that the assessee has declared gross receipts of Rs. 14,56,230/- from his dairy business and return of income has been filed u/s 44AD of the Act. However, during the course of assessment proceedings, the assessee was required to file documentary evidence to substantiate his claim regarding diary business and in absence of any such evidence furnished before the Assessing Officer, it was not possible to verify that the receipt so declared amounting to Rs. 14,56,230/- is from the business of dairy. The ld. DR further submitted that the amount of cash and other credits in the bank account remain unverified as the assessee has not filed any reply regardin....

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.... "5. Once under the special provision, exemption from maintaining of books of account has been provided and presumptive tax @ 8% of the gross receipt itself is the basis for determining the taxable income, the assessee was not under obligation to explain individual entry of cash deposit in the bank unless such entry had no nexus with the gross receipts. The stand of the assessee before Commissioner of Income-tax (Appeal) and the ITAT that the said amount of Rs. 14,95,300/- was on account of business receipts had been accepted. Learned counsel for the appellant with reference to any material on record, could not show that the cash deposits amounting to Rs. 14,95,300/- were unexplained or undisclosed income of the assessee." 6. We therefo....