TaxTMI 
TaxTMI 
2025 (6) TMI 723
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.... hearing, the learned Counsel for the assessee, at the outset submitted that the appeal has been filed by the assessee, belatedly. The learned Counsel adverted my attention to the affidavit filed in this regard citing reasons for condonation of delay and urged for a benign view and sought condonation of delay of 134 days in filing the appeal before the Tribunal. The learned Counsel, explained the reasons for delay stating that the hearing notices u/s. 250 of the Act, were issued dated 15.02.2021 and 09.04.2021, on wrong email ID, [email protected]. Hence, assessee could not comply the hearing notices. When, assessee visited the office of his 'AR' and then AR checked the E-filing portal, the assessee found that the CIT(A) order was ....
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....00,000/-, cash deposit in bank account. 5. Succinctly, the factual panorama of the case is that assessee before me is an Individual. In the assessee`s case, the Department is in possession of information that the assessee has made cash deposits of Rs. 15,00,000/- in the saving bank account. However, on verification of assessee's records, it was noticed by the assessing officer that the assessee did not file the return of income for the assessment year (A Y) 2011-12 and thereby the sources of cash deposits made in the saving bank remained unexplained. Therefore, after recording reasons, the assessee`s case was re-opened after obtaining prior approval of the Jt. CIT, Range- 3(1), Rajkot vide the reasons recorded for initiating proceeding....
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.... of fruits and flowers have been deposited in the bank account, which is nothing but turnover of the assessee`s family retail business. In this situation, the entire cash deposit in the bank account should not be treated as net profit of the assessee. Therefore, a profit element may be taxed in the hands of the assessee. 8. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which I have already noted in my earlier para and is not being repeated for the sake of brevity. 9. I have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case in....
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....il business of the assessee. The estimation of income is based on facts and will vary from year to year depending on the business conditions. No doubt, estimate of the profit can be resorted to in these types of cases. Further, I find that the amount deposited out of family owned business in the bank account cannot be treated income of the assessee and only the profit element is to be taxed in the hands of the assessee. I find that in such type of business, 5% net profit (after deducting direct and indirect expenses from sale) is appropriate. Therefore, I am of the view that to meet the end of justice, the addition at the rate of @ 5% of the total turnover, which is deposited in the bank account, may be a reasonable addition, in the hands o....
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....saction of cash as well as cheques. On careful consideration of facts, we are of the view that entire deposits in bank account cannot be considered for addition. Since the bank account is reflecting deposits as well as withdrawals, hence, there is every likely that bank account has been used for unrecorded business transactions as claimed by the assessee. Therefore, it would be in the interest of justice that only profit eliminate @ 5% is considered for tax of total deposits of Rs. 18,32,079. Therefore, the assessing officer is directed to consider net profit @ 5% of total deposits of Rs. 18,32,079 which worked out to Rs. 91,600. Accordingly this addition of Rs. 14,76,614 is restricted to Rs. 91,600. This ground is therefore, partly allowed....