TaxTMI 
TaxTMI 
2025 (6) TMI 66
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....on of the assessee. 2. That in any case and in any view of the matter. action of Ld. CIT(A) in contirming the action of Id. AO in making addition of Rs. 1.00.00.000- by treating it as alleged unexplained unaccounted income of assessee and the same is chargeable to tax u/s. 115BBE. is had in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case. Ld. CIT(A) has erred in law and on facts in not reversing the action of L.d. AO in charging interest us 234B of the Income Tax Act. 1961. 4 That the appellant erases the leave to add. modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other. 3. Facts in brief are that the assessee is assailing the addition of Rs. 1 crore towards cash deposited in a single occasion on 23.11.2016 with Kotak Mahindra Bank. During the course of hearing, the assessee submitted a brief note on the issue involved, which is reproduced as under:- The only issue arising in this case is regarding addition of Rs. 1,00,00,000/- made by the AO as income earned from unexplained sources, c....
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....016 by cash. This cash is out of gross receipts of Rs. 1,01,20,000/- of this year. The assessee had incurred expenditure of Rs. 93,10,400/- in earning the aforesaid receipts of Rs. 1,01,20,000/-. The details of such payment are furnished by the Ld AO on Page 13 of the Assessment order which are reproduced below: S. No. Name PAN Amount 1 Ramautar Agarwal HUF AAHHR5605R 15,60,400 2 Abhi Jain ADWPA161C 7,50,000 3 Abhi Jain BAQPJ6236A 20,00,000 4 H.B. Relan & Co. - 50,00,000 Total 93,10,400 All these payments are duly reflected in the bank account of the assessee. From the aforesaid facts, it would be clear that the assessee had been carrying on the same business in the past and also has carried on the same business in future years. Ld. AO arbitrarily came to the conclusion, that the assessee has failed to prove that it actually carried on the job work business. In this connection, he has summarized eight points in para no. 9.1 of his order. These are reproduced as under: A Nature of business should appear physically. B Official address of the prem....
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....ased upon irrelevant considerations, ignoring the facts of the case. Section 44AD inter-alia provides that in the case of an eligible assessee engaged in eligible business, a sum equal to 8% of the total turnover or a higher sum claimed to have been earned by the assessee shall be deemed to be the profits and gains of such business. It has been stated earlier that the assessee had been carrying on this business in past and continued to carry on this business in future. Therefore, there is no force in the findings of Ld. AO and Ld. NFAC that the assessee has not carried on any business. Further, A combined reading of sections 44AD(4), 44AD(S) and 44AA(2)(iv) will show that there is no requirement for the assessee to keep and maintain the books of account. Needless to say that the assessee being a HUF is an eligible assessee and it is carrying on eligible business as the turnover is below Rs. 2 crore. Therefore, all conditions of Section 44AD are satisfied. In the aforesaid situation, objections of AO taken in Para No. 6.1 (8 Objections) do not carry any weight. The assessee has been consistently declaring profit u/s 44AD. Therefore, the question that cash ....
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.... found taxable by Hon'ble Tribunal, the AO may be directed to levy tax at the rate of 30%. 4. Upon perusal of the assessment order, it is manifest on record that the addition has been made by observing as follows:- "11. In the light of above facts, it is established that the assessee has made concocted story just to explain the unaccounted/unexplained cash and in the absence of concrete evidences and plausible explanation, it is held that no business activities were carried out by the assessee during the period 01.04.2016 to 01.11.2016 and the precise source of cash deposited of Rs. 1,00,00,000/- on 23.11.2016 in bank account has remained unexplained and unsubstantiated. Accordingly, it is held that the said unexplained/unaccounted money is liable to be added back to the taxable income of the assessee. Accordingly, addition of Rs. 1,00,00,000/- (apart from the income of Rs. 6,59,600/- already declared by the assessee in its ITR by treating it earned from the other sources) is made to the taxable income of the assessee on account of income earned from unexplained and undisclosed sources and the same is chargeable to tax u/s 115BBE of the Act. Since, the assessee has ....