2022 (1) TMI 726
X X X X Extracts X X X X
X X X X Extracts X X X X
...., however, was filed on 22.09.2016 with a delay of 11 days. The Ld. AR submitted that the appeal papers were prepared and handed over to the assessee for signature before the due date for filing the appeal. At that point of time, since the assessee was away from the station on a pilgrimage and returned to Salem on 20.09.2016, this appeal could be filed only on 22.09.2016. Since, this delay is neither willful nor wanton but due to the circumstances beyond the control of the assessee, it was pleaded that the delay in filing the appeal be condoned and the appeal be decided on merits. 3. We heard the rival submissions and condone the delay. 4. The assessee filed this appeal with the following grounds of appeal: " 1. The order of the Commiss....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns of the assessee in the proper perspective and thus deleted the entire addition made by the officer u/s. 69 of the Act." 5. The Ld. AR submitted that the assessee filed the return of income u/s. 44AD and paid the taxes @ 8% on the gross turnover of Rs. 55,25,200/-. Her total turnover did not exceed Rs. 60 lakhs. Since, the entire cash deposits of Rs. 54,97,000/- in the IOB account is fully covered in the total turnover, the assessee is not required to explain the individual deposits in the bank account as her return is fully covered u/s. 44AD of the Act. Neither the AO nor the Ld. CIT(A) appreciated this fact and hence the ld. AR submitted that the assessee's explanation may be accepted on the lines of grounds of appeal, supra, and the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the AO by a letter dated 12.03.2014 required the assessee to file the details and the relevant evidences . Thereafter, the assessee submitted that the income admitted by her is u/s. 44AD on the turnover of Rs. 55,25,000/-. She also stated that she is engaged in the real estate business and once the provisions of section 44AD is covered , she is not required to maintain books of account and she was not under any obligation to explain individual cash deposits in the bank account. Therefore, the Ld. AO concluded, inter alia, that the assessee's claim is riddled with inconsistencies for the following reasons. 1. If the cash deposits represented the assessees turnover of Rs. 55,25,000/-, which is admitted u/s. 44AD and her plea that the cash w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ccount. In order to substantiate her claim, she was asked to prove the flow of funds from her NRI son from abroad into some bank account in India and the subsequent withdrawal of cash from such account. 6.1 Thus, since the assessee has not furnished any explanation on the above points, and when she was confronted with the possibility of her sources being discredited in view of the above facts and propositions, the assessee by her letter dated 17.03.2014 has resorted to a new theory as an afterthought that she was engaged in real estate . So, the Assessing Officer held that if the assessee was carrying on Spoken English Coaching Class Profession , she is not eligible to admit the income u/s. 44AD as this would be in the nature of profession....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ard the rival submissions and gone through the relevant material. Though, the assessee admitted the income u/s. 44AD, with regard to the sources of cash deposits made in the bank account , initially, she submitted that her nature of business of Spoken English Coaching Class Profession and gave certain sources for the cash deposits made on 18.10.2010 and explained the sources for the cash deposits made on 21.10.2010 as extracted , supra. When the AO accepted part of her explanation and required the assessee to prove the sources of the remaining deposits, the assessee took a different stand and canvassed that her income is from real estate business and it is covered u/s44AD etc. However, she has not let any material/ evidences before the lowe....