TaxTMI 
TaxTMI 
2021 (5) TMI 782
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....khapatnam and Pr.CIT, Rajahmundry. Further, due to his daughter's marriage held in the month of May, 2019 there was little delay in issuing authorization and filing appeal before the ITAT. The delay has been occurred due to unforeseen circumstances beyond the control of the Revenue Department. It is further contended that there are good grounds for consideration in the appeal and there is a necessity to condone the delay, as otherwise the Revenue Department will be put to irreparable loss and severe hardship in case the delay of 33 days in filing the appeal has not been condoned. 3. Ld.AR did not refute the claim of the Revenue Department. 4. Having considered the contentions and submissions of the Revenue Department to the effect that Pr.CIT-1, Visakhapatnam is also holding the charge of two divisions and due to his daughter's marriage in the month of May, 2019, the delay in issuing authorization occurred which resulted into delay of 33 days in filing the instant appeal. Having considered the delay is meagre and the reasons seems to be sufficient, plausible and bonafide and cannot be termed as dishonest, as no fruitful purpose could be served in delaying the filing of the ap....
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..... Ground Nos. 1, 6 & 7 are formal in nature, hence, needs no separate adjudication. 7. Ground No.2 relates to the addition of Rs. 46,60,000/- made by the AO, towards unexplained cash deposits in HDFC Bank by the Assessee . The AO made the said addition on the following reasons:- "a) That the bank account is undisclosed to department and it was detected by the department. b) The work receipts so stated, to have been received from certain persons, were never substantiated. Vide your statement to Q.No.7, 9 and 10 recorded from the assessee on 10-03-2015, he has categorically stated that he has no evidence to establish that they are indeed work receipts. c) During the course of survey at all of the premises belonging to the assessee, no single piece of evidence was available to sustain your plea. d) Your plea that unaccounted expenditure should be given credit, as per case laws, is not acceptable in absence of any possible evidences. e) That, in the FY: 2010-11 also similar cash deposits were found in the said undisclosed bank account where the departmental enquiries conducted at Bellary that the confirmation letters are baseless. Moreove....
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....s an undisclosed asset outstanding at the end of the year should be taxed as undisclosed asset after giving due credit or opening balance if any. Accordingly, we dire the A.O. to tax the profit on the amount of Rs. 25,95,276 @8% and the closing balance in the bank account. Accordingly, we set aside the order of the lower authorities and partly allow the appeal of the assessee." There is no change in the facts of the case. For the impugned assessment year also the bank account was operated in the same manner. Therefore, respectfully following the decision of the jurisdictional tribunal I direct the assessing officer to estimate profit @8% on the total deposits of Rs. 46,60,000. At the same time, I found from the return of income filed in response to notice u/s 148 that the appellant has already increased the turnover by the amount of Rs. 46,60,000 (Rs. 1,00,44,218-Rs. 53,84,218) and admitted profit @8%. Also, it is noticed that the bank account was closed in February, 2012 and the closing balance is Rs. Nil. Hence, no further addition is required. Therefore, the assessing officer is directed to delete the entire addition of Rs. 46,60,000. Grounds of appeal no.(2) to are all....
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...., acceptable. b) Survey, has been conducted, findings confronted with the Assessee and the Assessee was given ample opportunities to furnish evidences but he failed to do so. c) The work receipts so stated, to have been received from certain persons, were never substantiated. d) Assessee, did not, in any manner, prove the nexus between the cash withdrawals and cash deposits. e) As per the provision of Sec.44AA(1) of the Income Tax Act, the Assessee claimed as "interior decorator", it is mandatory for him and he shall keep and maintain books of accounts and other documents. The Assessee did not follow this". 8.1. The said addition was also challenged before the ld. Commissioner, who deleted the same by holding as under:- "6.3) Ground No.6 : Cash deposits of Rs. 52,39,300: The assessing officer made the addition by rejecting the claim of the appellant that the cash with drawn was re-deposited in the bank account. I have carefully perused the assessment order, bank statements and the daily cash flow statement submitted by the appellant. The business premises of the appellant were subjected to survey and whatever incriminating material wa....
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....ken the loan are close relatives and money has been routed through banking channel and both the donors have disclosed the transactions in their financial statements and before the AO, filed the confirmation letters and also substantiated through their returns of income for the assessment year under consideration and resultantly the Assessee has prima-facie discharged his onus as held by the ld. Commissioner. With regard to contention qua the creditworthiness of the donors, the Assessee is required to discharge its onus prima facie on the basis of probability only, which in the instant case correctly been discharged by the Assessee, hence, we are unable to find out any reason and/or material to controvert the finding of the ld. Commissioner. Consequently, ground No.4 also stands dismissed. 10. Coming to the ground No.5 which relates to the deletion of addition of Rs. 48,20,217/- made towards unsubstantiated expenditure by the AO. Before the AO it was contended by the Assessee that the material purchase bills are available for recent times, but credit should be given to earlier years also. He is not a professional architect and hence provisions of section 44AA are not applicabl....
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....unt, it is noticed that the appellant admitted income from business of interior decors @8% of the turnover. As the appellant has opted for the provisions of S.44AD, there is no necessity to submit the profit and loss account. However, the appellant submitted a profit and loss account by arriving at the profit exactly @8% of the turnover. The appellant did not maintain regular books of account and has chosen to admit the income as per the provisions of S.44AD of the Act. Therefore, the profit and loss account submitted cannot be taken into consideration and the appellant cannot be asked to substantiate the expenditure shown in the profit and loss account. The assessing officer is not justified in observing that the appellant failed to show the source as business income. The assessing officer himself allowed certain expenses like Advertisement, travelling expenses, office rent, telephone expenses etc. Further, the assessing officer assessed the income admitted by the appellant under the head profits and gains of business only. Once, the appellant has chosen to admit the income in terms of S.44AD of the Act the profit has to be assessed as per the percentage stipulated in the....