2024 (9) TMI 1044

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....e Income Tax Act, 1961 (in short 'Act') dated 12.12.2019 for the Assessment Year (A.Y.) 2017-18. 3. Brief facts of the case are that the assessee deals in purchase and sale of mobile phones and accessories like batteries and chargers, both in wholesale and retail. He maintained regular books of accounts and got the accounts audited u/s 44AB of the Act and filed Form 3CB and 3CD in time, but could not file the return of income in time. During the demonetisation period, the assessee has made cash deposits in his bank account. Accordingly, during the assessment proceedings, notice u/s 142(1) was issued to explain the source of cash deposits in the bank accounts during the F.Y.2016-17 with evidence. The assessee did not file return of income t....

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....mmissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs. 76,08,376 made by the assessing officer by estimating the business income @15% of the turnover of Rs. 5,07,22,573 admitted by the appellant in the Profit & Loss account. 6. It was the submission of the assessee that the notice u/s 143(2) of the Act was issued to the assessee to examine the cash deposits during the demonetization period and after examining the source for cash deposits, the AO has not made any addition on that count. He, further submitted that the only grievance of the AO is that the assessee has not filed the return of income within the time prescribed in the notice issued by the AO u/s 143(2). He, further submitted that the assessee filed....

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....the assessee. 7. Per contra, the Ld.DR submitted that the assessee has not filed the return of income within the time prescribed in the notice u/s 143(2) f the Act. Therefore, the AO estimated the profit @15% on the turnover of the assessee. The Ld.DR therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee. 8. We have heard both the parties and perused the material available on record. It is an admitted fact that the assessee maintained the books of accounts and got the accounts audited u/s 44AB and filed Form 3CB and 3CD in time. But he could not file the return of income due to personal reasons. Therefore, the AO estimated the net income @15% on the turnover as per audit report. It is undisp....