TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 562
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....appeal is taken up for hearing and final disposal at this stage. 4. This appeal concerns Assessment Year (AY) 2011-12. 5. The record shows that the appellant/assessee had not filed his Return of Income (ROI). Consequently, the appellant/assessee was served with a communication dated 12.07.2012 bringing to his notice that no ROI had been filed. The appellant/assessee responded to the said communication via letter dated 12.07.2012, declaring that he had earned no taxable income for the AY in issue. 5.1 Thereafter, the appellant/assessee received another communication dated 12.06.2013, which sought information from the appellant/assessee with regard to the cash deposit of Rs. 10,51,885/- made in the bank account maintained by the appellant/assessee. 5.2 The appellant/assessee responded to this communication as well via letter dated 14.11.2013. Inter alia, the appellant/assessee provided explanation with regard to the cash deposit. The explanation given by the appellant/assessee was, broadly, as follows: (i) Rs. 3,19,500/- was received as a gift on the appellant/assessee's birthday. (ii) The balance amount was deposited by him, evidently in cash, from money received in his cap....
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....t are initiated separately. 5. On perusal of records placed on file it has been noticed that you have entered into share transaction amounting to Rs. 1,28,01,92,568/- and on perusal of reply of the assessee net value of profit and loss made in each transactions comes to Rs. 19,89,090/- and net profit at presumptive rate of 8% on 19,89,090/- comes to Rs. 1,59,127/-. Out of share transaction net profit amounting to Rs. 1,59,127/-is presumed as undeclared income of the assessee for the F.Y. 2010-11 relevant to AY 2011-12. In this regard assessee has submitted reply that he got loss in the AY 2011-12. Therefore the net profit at presumptive rate of 8 % is not sustained. The reply of the assessee has been examined and considered. 6. The assessee failed to comply the provisions of section 139(1) of the IT Act. Therefore penalty proceedings u/s 271 has been initiated separately. 7. Assessed at an income of Rs. 5,86,860/-. Charge interest of the IT Act accordingly. Give credit of pre-paid taxes. Issue demand notices and challan. Penalty proceedings u/s 271F and 271(1) (c) of the It Act, 1961 have been initiated separately." [Emphasis is ours] 9. The matter was carried in appe....
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....sessing Officer is therefore confirmed. Besides this the Assessing Officer had not accepted the declaration of profit of Rs. 4,470/- by the appellant from share trading business. But the appellant could not substantiate his stand of earning such low income either before the Assessing Officer or before the undersigned. I therefore have no reasons to refute the finding of the Assessing Officer. The Assessing Officer had computed the net profit of the appellant at 8% of net value of profit and loss made of Rs. 19,89,090/-. The Assessing Officer is directed to estimate this income of net profit at 5% of the net value of profit and loss made by the appellant." [Emphasis is ours] 10. Being dissatisfied, the appellant/assessee carried the matter in appeal to the Tribunal. The Tribunal partly allowed the appeal preferred by the appellant/assessee and thus, reduced the addition to Rs. 2,50,000/-, having regard to the fact that he had made withdrawals during the period under consideration. 11. Insofar as presumptive profit from trading in equity and commodities was concerned, the Tribunal sustained the conclusion arrived at by CIT(A). For the sake of convenience, the relevant part of t....
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...., had dropped the proposed addition made with regard to the presumptive profit earned by him on trading in equity and commodities. 12.3 For this purpose, our attention was drawn to paragraph 5 of the assessment order. For the sake of convenience, the same is extracted hereafter: " On perusal of records placed on file it has been noticed that you have entered into share transaction amounting to Rs. 1,28,01,92,568/- and on perusal of reply of the assessee net value of profit and loss made in each transactions comes to Rs. 19,89,090/- and net profit at presumptive rate of 8% on 19,89,090/- comes ot Rs. 1,59,127/-. Out of share transaction net profit amounting to Rs. 1,59,127/- is presumed as undeclared income of the assessee for FY 2010-11 relevant to AY 2011-12. In this regard assessee has submitted reply that he got loss in the AY 2011-12. Therefore the net profit at presumptive rate of 8% is not sustained. The reply of the assessee has been examined and considered." 13. It was therefore contended, that the AO had made an addition only with regard to the cash deposit, which the AO had pegged at Rs. 5,82,385/- and thus, pegged the appellant/assessee's income at Rs. 5,86,860/-. ....