2025 (6) TMI 1319

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....e Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 29.12.2019 for Assessment Year 2017- 18. 2. Grounds taken by the assessee are reproduced as under: "a. Ld. AO has considered the business cash deposited during the demonetization period as unexplained money u/s 69A, whereas he himself in his order has considered the same as business income. As the same is income from business that same should not be treated as unexplained money u/s 69A and the addition should be deleted. b. Ld. AO has considered the total credit in bank account as turnover, however it is important to analyse the nature of credit as the same not always amounts to turnover. Thus, the AO has misguided himself and has made the addition on ....

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....ast year copy attached 1,88,962 2. Cheque Returned 3,43,664 3. RTGS failed 14,06,930 4. EXCESS NEFT CHARGES REV 30 5. Purchase returned -Amount reversed by vendors 7,75,830 6. Self-deposits and deposits by Family Members - by Cheques 3,47,000 7. Cash deposited of family members during demonetization period - as pleaded earlier (para 5 of the order) 4,83,000   Total 35,45,416 2.2. Assessee in the course of appeal submitted that the total of Rs. 35,45,416/- as tabulated above is to be excluded from the turnover of the assessee as alleged by the ld. Assessing Officer. He then proposed that profit at the rate of 3% on the total credits in the bank account after reducing t....

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....r under consideration at Rs. 6,15,92,567/- against which assessee has shown sales turnover of Rs. 1,01,42,500/- as reported in the return filed. According to the ld. Assessing Officer, assessee has suppressed his turnover to the extent of Rs. 5,77,27,067/- i.e., total credit of Rs. 6,15,92,567/- reduced by cash SBN deposit of Rs. 38,65,560/- which is treated as business turn over. On this, he applied 8% to determine net profit of Rs. 46,18,165/-. Since, assessee has already reported net profit of Rs. 8,44,179/- in the return so filed, the balance of Rs. 37,73,986/- was added to the total income under the head "business and profession". In the first appeal, ld. CIT(A) sustained the addition so made and dismissed the appeal of the assessee. A....