TaxTMI 
TaxTMI 
2025 (5) TMI 1873
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....ing and selling of eggs and had declared his total income of Rs. 3,02,870/- by filing his return of income on dated 30.03.2018, which was processed u/s 143(1) of the Act. 3. Subsequently, the case of the Assessee was selected for scrutiny and the Assessing Officer (AO) issued statutory notices, in response to which the Assessee submitted purchase and sales details amounting to Rs. 1,17,89,133/- and Rs. 1,23,49,332/- respectively. The Assessee from business, had also shown the gross receipts, amounting to Rs. 21,81,513/- in the return of income, wherein the amounts of Rs. 5,67,060/- and Rs. 3,52,813/- were shown as gross and net profit respectively, after claiming the expenses of Rs. 2,14,247/-. 4. The AO, by considering the aforesaid clai....
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.... observing and holding as under: "From the bank statement of the Assessee, it is seen that the Assessee has made total turnover during the year under consideration for Rs. 1,24,68,432/- out of which cash deposit amount during the demonetization period is at Rs. 38,17,000/-. Thus, the turnover excluding cash deposits during demonetization period is at Rs. 86,51,432/- during the year under consideration and in the absence of books of accounts of the Assessee the amount of Rs. 86,51,432/- is being considered as the total business receipt of the Assessee and therefore by considering the gross net profit for the A.Y. 2016-17 and 2017-18 to the tune of 19.70% and 16.17 % respectively, the business profit is estimated @ Rs. 15,57,258/- being 18%....
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....sales register, purchase register and stock book and also maintaining monthly purchase and sales chart. The Assessee further submitted that without purchases, there cannot be any sale. The Assessee also claimed that the Assessee generated cash from his business and deposited the same in the bank account and disclosed and offered the same to tax in the return of income and paid the tax applicable thereon. As the Assessee has already offered his income to tax in the return of income and therefore, any addition on this count, shall tantamount to double taxation. 9. On the country the Ld. D.R. refuted the claim of the Assessee. 10. Heard the parties and perused the material available on record. It is observed from the orders passed by the aut....
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....chase and sales shown during the demonization period is much higher as compared to the rest period of the year and therefore the AO by holding that the accounts of the Assessee are not audited and therefore gross receipt shown by the Assessee in his return of income, is not acceptable, brought the amount of Rs. 38,17,000/- to tax in the hands of the Assessee, as unexplained money u/s 69A of the Act. 12. On the contrary, the Ld. A.R. has claimed that the Assessee has filed various documents as mentioned above in order to establish the genuineness of the purchases and the sales made thereon. It is not the case of the department that the Assessee is doing any other business than what the Assessee has disclosed and therefore the addition of Rs....
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....eipts/sales of the Assessee during the A.Y. under consideration and estimated the business income @ 18% (Rs.15,57,258/-) of the said amount of Rs. 86,51,432/- and by deducting the amount of Rs. 3,52,813/-, as declared by the Assessee, ultimately made the addition of Rs. 1,20,445/-. 15. The AO while perusing the credit increase in the bank accounts maintained by the Assessee noticed that the credit in the bank accounts does not match with the turnover declared by the Assessee and therefore, he show caused the Assessee to submit the explanation on 26/11/2019. In the show cause notice, the AO specifically pointed out that in the return of income for the A.Y. 2017-18, the Assessee had shown gross receipts / turnover for the AY under considerat....
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....untant". 19. Thus the AO by considering the peculiar facts and circumstances specific to the effect that the gross turnover/receipts credit in the bank accounts of the Assessee is at Rs. 1,24,68,432/- including cash deposit during demonetization period amounting to Rs. 38,17,000/- and therefore determined the total turnover as under: "Total turnover/business receipts (sales) during the AY under consideration of Rs. 86,51,432/- (12,48,65,132/- - Rs. 38,17,000/-)" 19. The AO, by considering the gross receipts and net income/profit of Rs. 3,21,802/- and Rs. 3,52,813/- respectively @ 19.70% of gross receipt of Rs. 16,32,817/- and @ 16.17% of gross receipt of Rs. 21,81,513/-, shown by the Assessee during the AY 2016-17 & 2017-18, considered ....