TaxTMI 
TaxTMI 
2023 (12) TMI 698
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....ile the appeal within the time. The assessee has also filed necessary affidavit for condonation of delay of 199 days. Ld. CIT-DR has not raised any serious objection. Consequently, the delay in filing the appeal is condoned and the appeal is disposed off on merits. 3. On merits, it was the submission that the ld. AR that the original assessment order in the case of the assessee came to be completed u/s. 144 of the Act on 30.12.2019, wherein the AO had estimated the income of the assessee at 8% of the cash deposited in the assessee's bank account representing the sales. It was the submission that the assessee had filed first appeal before the ld. CIT(A) and in the meantime Vivad Se Vishwas Scheme, 2020 had been introduced and the assessee opted for the said scheme. It was the submission that Form No.5 under the Vivad Se Vishwas Scheme was issued on 29.11.2021. It was the submission that on 25.01.2022 a show cause notice u/s. 263 of the Act came to be issued on the assessee and on 18.03.2022 an order u/s. 263 of the Act came to be passed, wherein in para 5 of the order, the ld. Pr.CIT has given the following directions :- 5. I have carefully considered the submission vis-....
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....substantial cash in his bank accounts, he had not filed his Return of Income for the A/Y 2017-18. Therefore as per Board's Instructions, a Notice u/s 142(1) of the Act dtd. 17.01.2018 was issued and served upon the assessee, asking him to file his Return of Income for the A/Y 2017-18, But the assessee did not filed his Return of Income for the A/Y 2017-18. 2. As a measure of enquiry notice u/s. 133(6) of the Act was issued to the Oriental Bank of Commerce, Deogarh on doted 01.05.2019 and copy of bank account statements and information on cash deposits made using old demonetized 'currency was collected, As per the bank account statement the assessee has in fact received an aggregate of Rs. 1,78,71,965 in his bank account mentioned as above. Therefore, later a notice u/s. 142(1) of the Act as well as notice u/s 144(1) of the Act were issued to the assessee asking him to explain the source of cash deposits with documentary evidence. In response to the above, the assessee furnished the following documents on date 16.09.2019. 1. Statement of income for the Assessment Year 2017-18, 2. Current Account & CC Account statement from 01.04.2016 to 31.03.2017,....
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....497900 1699990 15,66,600 September 20,27,243 1702300 1897030 18,49,700 October 22,08,091 2082100 3146500 20,02,900 November 16,03,914 1479120 1097730 16,88,10 December 11,02,616 922800 92812 9,93,200 January 7,79,208 563414 735320 8,83,900 February 4,15,651 505900 812770 478900 March 13,41,198 582727 740150 1114621 1,68,64,270 14809973 1,58,23,571 17141100 5. Based on the above observation the bank account statement and the replies on various issues by the assessee, and the information collected from third parties, the following issues have crept in for consideration. Having heard the case and the following issues are considered and decided under separate heads: 6. Addition on account of undisclosed income from business or profession. (i) The receipts from business sales are first deposited in the bank account and then remitted to the supplier. In other words, the receipts in the bank account are nothing but the business receipts of the assessee. (ii) The assessee has declared that the gross sales for the year was R....
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.... in the self made un-audited P&L account cannot be relied upon and hence the same is rejected. (vi) Now considering the gross annual purchase at Rs. 1,64,90,342/- (as derived above), the gross sales figure can be estimated by reverse calculation method. Taking reference of all relevant issues and non maintenance of books by the assessee, I reasonably estimate the net profit from the business concern is @8% of gross annual sales. Purchase value, must include profit to arrive at sales value. Applying reverse calculation method, the gross sales of the assessee for the F.Y. 2016-17 is determined as under:- Gross sales = Purchase X 100 92 = 1,64,90,342 X 100  ....