TaxTMI 
TaxTMI 
2015 (11) TMI 1904
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....d, therefore, we find it convenient to dispose of these appeals by way of this common order. 2. To dispose of these appeals, we refer to the facts in case of Sri Kadigari Narasimha Reddy in ITA No. 581/Hyd/2013. 3. Briefly the facts of the case are that the assessee an individual, engaged in the business of civil construction and also partners in the M/s BVM Constructions filed his return of income declaring total income of Rs. 4,83,600, which includes remuneration of Rs. 3,00,000 and business profit of Rs. 3,01,920 declared u/s 44AD. 3.1 The main issue in this case is, AO noticed cash deposit of Rs. 31,04,179 into the bank M/s Karur Vysya Bank, which was treated as unexplained cash credit. The assessee was summoned u/s 131 and swo....
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....count, with the help of the needed and relevant information. related to such contract works, by connecting such activity to the deposits but also failed to prove the same before the appellate authorities. No relevant information was filed before the CIT(Appeals) to indicate that the activity of contract works relate to the cash deposits, specially the cash deposits made into the bank account, referred above, except reiterating the theoretical explanations. 8.5 During the course of assessment proceedings the AO has questioned about the cash deficit statement of the appellant which was not elaborated in detail and time' was sought for explaining the same. The same stood unexplained during the appellate proceedings as well, ....
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....t, confirming for both the bank accounts, as per which the peak of such deficit/negative cash balance as on 09.03.2009 stood at Rs. 28,05,679/-. The entries of the account for few of the relevant days for the FY are as under: Date Particulars Op.balance Debit Credit Cl. Balance Remarks 8.3.09 Cash deposits in bank 994,321 950,000 44,321 8.3.09 -do- 44,321 950,000 (905,679) Rs. 9,05,679 has no reference 9.3.09 -do- (905,67 9) 950,000 (1,855,679) Rs. 9,50,000 has no reference 9.3.09 -od- (1,855,6 79) 950,000 (2,805,679) Rs. 9,50,000 has no reference Thus, it prove that the....
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....redits in the bank accounts of appellant exceeded Rs. 40 lakhs and therefore the provisions of section 44AD of the I.T. Act would not apply. 5. The findings of the CIT(A) with respect to furnishing of information before the AO and so also before him, is factually incorrect. The CIT(A) had conveniently twisted the facts to suit his convenience while giving above findings which are far from true." 6. Ld. AR submitted that the assessee is in the small civil construction business and not able to maintain books as well as able to maintain small contracts, which is practically difficult in this line of business. He submitted that the unexplained cash is nothing but the cash receipts from the civil construction business carried o....
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....the fact that assessee also withdraws cash regularly. The closing balances in the bank accounts reaching the minimum level shows that the assessee utilizes the same for running business. 8.3 The statutes allows and gives benefits to the small business people like the assessee to estimate their income so that they fulfill the statutory obligation of taxation and they also enjoy the benefits like, they don't have to maintain books of account as stipulated u/s 44AA, they are not subject to payment of advance tax under the provisions of Chapter - XVII - C. 8.4 As far as the cash deposits in the bank are concerned, we have noticed that the assessee has gross receipts of Rs. 35,52,000/- from the construction business, which was not doubted ....