TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 800
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....be granted by deleting the said addition. (3) That the Ld. CIT(A) has erred on facts and in law in confirming the addition of Rs. 32,50,000/- in presuming that the entire cash deposit was undisclosed income of the assesse disregarding the fact that the said amount deposited in bank account were nothing but out of opening cash of Rs. 1,65,236/-, sale of shop (without assets & stock) at Rs. 6,00,000/-, sale of entire closing stock at Rs. 22,42,700/-(which shown as turnover u/s 44AD) and amount realized from debtors at Rs. 9,60,690/- during the year under consideration. Relief may please be granted by deleting the said addition. As per para 7 of CIT(A)'s order under appeal. (4) That the Ld. CIT(A) has erred on facts and in law in presuming that the appellant had sold the shop at Rs. 30,00,000/- whereas actually the appellant had sold tl shop at Rs. 600000 + sale of stock at Rs. 2242700 + received from debtors Rs. 157300 . Total amount received from shop sale 600000+2242700+157300 =3000000 and the same amount deposited in bank account. As is evident from the CIT(A)'s order para no 7 under appeal. (5) That the Ld. CIT(A) has erred on facts and in law in confirming the enti....
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....wing deduction u/s 54F/54 of the Act7{as evident from para 8 under appeal). (8) That the appellant craves, leave to add, alter, amend or vary and/or withdraw any or all of the aforesaid grounds of appeal or at the time of hearing of the above appeal." 2. Briefly stated facts of the case are that for the year under consideration, the assessee filed its return of income on 30/03/2012 declaring income of Rs. 1,57,540/-. The return of income filed was processed under section 143(1)(a) of the Incometax Act, 1961 (in short 'the Act'). On receipt of information by the Assessing Officer that cash of Rs. 39,10,000/- was deposited in his saving bank accounts with Axis Bank, the assessment was reopened by way of issue notice under section 148 dated 26/03/2018. Subsequently, notices under section 142(1) of the Act were issued on various dates from 22/06/2018 to 17/11/2018. Finally, the assessee filed submission on 29/11/2018 stating that return filed under section 139 of the Act on 30/03/2012 might be treated as return in response to notice under section 148 of the Act. In the return of income, the assessee declared gross turnover Rs. 22,42,700/- and net profit under section 44AD at Rs. 2,2....
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....rned CIT(A) submitted that lower authorities have misunderstood the contention of the assessee. According to him, the assessee has sold the shop along with furniture and stock of goods as he shifted his business of wholesale cloth merchant. He submitted that the assessee was in the process of winding up of business of cloth merchant at Palwal (Haryana) and therefore, no purchases were made during the period. The learned Counsel submitted that the assessee deposited all-cash amount of Rs. 39,10,000/- in bank account having details as under: opening cash on hand (as per previous year balance-sheet) Rs. 1,65,236 Add: sale of shop (without a certain stock) Rs. 6,00,000/- Add: sale of closing stock Rs. 22,42,700/- Add: amount received from petty debtors Rs. 9,60,690/- Total Rs. 39,68,626/- Less: deposited in bank Rs. 39,10,000 Cash in Hand Rs. 58,626/- 5. The learned Counsel submitted that stock was sold through local vendors as stock clearance sale and sale turnover of Rs. 22,42,700 /- has been declared under section 44AD in the return of income filed. According to the learned Counsel, the deposits in bank account are as per sales ledger cash received during the y....
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....t of Rs. 30 lacs in his bank account on 23.12.2010. Further, after going through the bank account, it is found that there is cash deposit ofRs. 8,50,000/- on 23.10.2010. The appellant has tried to explain the same and remaining cash deposit of Rs. 24 lacs on 23.12.2010 from the sales made during the year under consideration and from realization of debtors from the past years. There is nothing on record to substantiate that the appellant was having debtors to the extent of Rs. 9,60,690/- from whom such cash was realized. The appellant has shown turnover of Rs. 22,42,700/- from the trading u/s 44AD of the Act. In the circumstances, it is beyond preponderance of human probability that the appellant could accumulate cash in hand to such extent from the realization of debtors and sale of stock to the extent to make cash deposits of Rs. 8,50,000/- on 23.10.2010 and Rs. 24 lacs on 23.12.2010. It is relevant to mention here that the appellant had to make payments in order to make purchases in order to carry out the trading of goods. Therefore, it cannot be presumed that the whole sale proceeds out of stock were available with the appellant to make the cash deposits in the bank account. Suc....