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2022 (6) TMI 547

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....ted in brief. The assessee is a partnership firm and is engaged in the business of providing financial services. It collects pigmy deposits from public and investing it in fixed deposits and in giving loans. For the year under consideration, the assessee filed its return of income declaring a total income of Rs.70,510/-. The assessee had declared gross receipts of Rs.8,81,315/- and declared a net profit of Rs.70,510/-. The A.O. took the view that the assessee has estimated the income on presumptive basis at 8% of the gross receipts declared by it. The A.O. further noticed that the assessee has deposited cash during demonetization period in two bank accounts aggregating to Rs.33,98,000/-. The A.O. took the view that the assessee should have ....

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....wrong on facts in observing that the assessee has offered income in its return of income on estimated basis. The Ld A.R submitted that the assessee is maintaining regular books of accounts and has also furnished Profit and Loss account and Balance Sheet along with the return of income. The income arrived at in the Profit and Loss account was declared in the return of income. The Ld A.R submitted that the pigmy deposits have been collected from its customers and shown as liability in the Balance sheet. The Ld A.R invited my attention to the Profit and Loss account and Balance Sheet in support of above said submissions. The Ld A.R further submitted that assessee has used the cash balance available in the books of account, which included the p....