TaxTMI 
TaxTMI 
2021 (4) TMI 451
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....t of Rs. 36,76,750/- were made out of earlier cash withdrawals from the bank account and hence, the same cannot be regarded as undisclosed business turnover and therefore, the addition of Rs. 5,51,512/- ought not to have been confirmed. 3. The learned CIT[A] is not justified in upholding the addition of Rs. 9,01,350/- as income u/s.44AD of the Act by estimating 15% of the alleged excess cheque deposits to the extent of Rs. 60,09,000/- as compared to the turnover declared by the appellant, which has been treated as undisclosed turnover of the appellant under the facts and in the circumstances of the appellant's case. 4. The learned CIT[A] failed to appreciate that even though there was a total receipt through the bank account via cheques of Rs. 87,34,000/-, there were withdrawals through the bank aggregating to Rs. 1,26,91,770/- and many of the amounts received in cheques were refunded to the customers on account of the cancellation of the transactions and the same cannot be regarded as income. 5.1 The learned CIT[A] failed to appreciate that the appellant was a old car dealer and broker and used to purchase and sell the old cars to the prospective cus....
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....ion to additional ground stating that inadvertently this ground was not raised in earlier occasion and which do not require any investigation of any facts otherwise on the records of the Department and also pure question of law and prayed to admit the additional ground placing reliance on the judgment of Supreme Court in the case of NTPC Ltd., Vs. CIT 229 ITR 383 and also judgment of Karnataka High Court in the case of Gundathur Thimmappa And Sons Vs. CIT 70 ITR 70. The DR did not put any serious objections for admission of additional grounds. After hearing both the parties, we are of the opinion that the grounds raised by assessee do not require any investigation of facts and by placing reliance on judgment of Supreme Court in the case of NTPC Ltd., we are inclined to admit the additional grounds for adjudication. 4. The facts of the case are that the assessee is engaged in business of buying and selling of old cars and declared income of Rs. 408870/- under section 44AD of the Income Tax Act, 1961 (hereinafter called 'the Act') on turnover of Rs. 27.25 lakhs and the assessee not maintained any books of account. The assessee's case was selected for limited scrutiny to see whethe....
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....considered by the AO is also not substantiated with any evidence that the same was submitted before the AO but not considered. Further, it is observed that unless all the deposits are reconciled with the withdrawal by linking the specific transactions showing the source of credit and the destination of withdrawal are the same; the mere claim to adjust ail the withdrawals as refund against the deposits in the account cannot be accepted as such. It is already accepted that the assessee could not even furnish the complete list of persons for the receipt of cash in its Bank account. In view of above, the contentions of the appellant cannot be accepted. The AO has already accepted the cash deposit for which the assessee could furnish a list of persons and the AO has also adjusted the turnover declared by the assessee in his return against the total receipt in cheque as per Bank account. Therefore, it is observed that the approach of the AO has been reasonable and the additions made by the AO are found to be justified. Hence, the addition of Rs. 14,52,862/- by the AO is upheld by the CIT(A). 6. Against this, assessee is in appeal before us. The learned AR submitted that CIT(A) is not ....
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....it into bank account. Being so, it was treated as income of the assessee at 15% of such amount. Regarding limited scrutiny, he relied on the Circular No.20/2015. 9. We have heard both the parties and perused the material on record. In this case, the assessee has deposited a total of Rs. 87.34 lakhs by way of cheque into bank account and declared income of total turnover of Rs. 27.25 lakhs only. The AO deducted the declared turnover from this receipt (87.34 - 27.25) and worked out the undisclosed turnover at Rs. 60.09 lakhs. Out of this, he estimated the income at 15% worked out at Rs. 9,01,350/-. Now the contention of the AR is that the assessee received cheque from the prospective customers and the same was deposited into bank account and it cannot be treated as income of the assessee. In our opinion, whenever assessee deposits money into bank, it is the duty of the assessee to furnish the name, address and PAN to show that it is towards the advance received from the customers. In this case, the assessee failed to establish the identity of the parties from whom it has been received. Being so, the AO having no alternative, has estimated the income at 15% as offered by the assess....