2016 (4) TMI 1440

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....e against the order of the ld. CIT(A), Alwar dated 10-09-2015 for the assessment year 2006-07 wherein the assessee is aggrieved that the ld. CIT(A) has erred in:- ''1. On the facts and in the circumstances of the case, the ld. CIT(A) has grossly erred in sustaining the addition of Rs. 1,92,599/- made u/s 40A(3) of the I.T. Act, 1961 without appreciating the fact that return of income was filed b....

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....ed by the assessee at an income of Rs. 1,17,667/- u/s 44AF of the Act which was initial processed. Consequent to survey, the assessment was reopened by issuance of notice u/s 148 dated 22-03-2013 on the ground that the assessee has made cash purchases in excess of Rs. 20,000/- in violation to provisions of Section 147 r.w.s. Section 143(3) of the Act in which returned income u/s 44AF was accepted ....

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....Aggrieved, the assessee is in second appeal. 2.4 The ld. Counsel for the assessee assails the addition and the ld. counsel for the assessee filed the written submission in which the sums and substances raises following pleas. (i) According to Section 44AF, the assessee was to be assessed on presumptive basis i.e. @ 5% net profit and no further addition can be made. In this regard nothing is wro....

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....residing in villages and having no banking facilities because of which they had insisted the assessee for making payment in cash towards the sale of their personal ornaments to the assessee and thus it is clear the case of the assessee is clearly covered by Rule 6DD(g) of the Income-tax Rules, 1962 inasmuch as the exceptional circumstances specified thereunder existed in the case of assessee and t....