TaxTMI 
TaxTMI 
2025 (7) TMI 432
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.... the assessment order u/s 144 of the Act, dated 10.12.2019. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "1. That on the facts and circumstances of the case the learned Commissioner of Income-tax (Appeal) has failed to appreciate that the assessee has been carrying on the business under the name and style SHRI RAM PETROLEUM of petroleum products as authorised retail distributor of Hindustan Petroleum Company Limited under Explosive License 2. That on the facts and circumstances of the case the learned Commissioner of Income-tax (Appeal) has erred in stating as under 2. "Considering the facts of the case............... The taxpayer has stated that the cash deposits du....
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....e transactions relate to sale of petrol/diesel" without bringing on record any documents as evidence to contradict the claim of the assessee that the credits in the bank account has been against the sales of petroleum products supplied by Hindustan Petroleum Company Limited. 7. That on the facts and circumstances of the case the learned Commissioner of income-tax (Appeal) has failed to appreciate that the total credit in the bank account is Rs. 10,76,32,265 which includes Rs. 25,00,000 (Rs.12,50,000/- on 19.12.2016 and Rs. 12,50,000/- on 20.12.2016) is due to failed RTGS, 8. That on the facts and circumstances of the case the assessee is not aware of any notice from CIT(A) with regard of his intention of enhancing the inco....
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.... As per information available with the AIMS module on the ITBA system of the Income Tax Department, it was found that the assessee had made huge cash transactions in his bank account during the financial year 2016-17 in general and especially during the demonetization period, i.e. from 08.11.2016 to 30.12.2016. A notice u/s 142(1) dated 13.03.2018 was issued and served upon the assessee to file the return of income for the AY 2017-18 but the assessee failed to file any return of income till 31.03.2018, which was the last date of filing of the return. As per the information available, the assessee was found to have made cash deposits of Rs. 1,75,23,300/- in his bank account No. 3007002100002568 at Punjab National Bank, Bhabhua during the dem....
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....n appeal before the Ld. CIT(A), who vide order dated 09.10.2023 enhanced the addition to Rs. 10,76,32,265/- and dismissed the appeal. Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal. 5. Rival submissions were heard and the record and the paper book filed/submissions made have been examined. It was submitted by the Ld. AR that the assessee is a dealer of petroleum in the name and style of M/s Sri Ram Petroleum for Hindustan Petroleum Corp Ltd. and the copy of dealership agreement with the company had been filed before us. It was submitted during the appeal before us that in the year under consideration, the total turnover was taken by the Ld. AO at Rs. 10,76,32,265/- and as no return of in....
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....nt de novo, the entire deposits during the year at Rs. 10,76,32,265/- were held to be added under section 68 of the Act by the Ld. CIT(A). 6. Before us, it was submitted by the Ld. AR that the total deposits in the bank account were Rs. 11,58,97,154/- comprising Rs. 9,40,38,210/- in cash and Rs. 2,18,58,944/- through banking channel but the turnover was estimated by the Ld. AO at Rs. 10,76,32,265/-. The order of the Ld. CIT(A) is stated to be against the principles of natural justice and on incorrect assumption of facts. In the course of the appeal before the Ld. CIT(A), a show cause notice was issued by the NFAC requiring the assessee to explain why profit rate of 15% on Rs. 10,76,32,265/- should not be charged and a copy of the show ca....
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....om 0.62% to 0.75% while in the case of the assessee in the earlier assessment year 2014-15, the net profit was 0.36% which varied from 0.41%, 0.40% and 0.47% in A.Y. 2015-16, 2016-17 and 2017-18 respectively, which is at par with other comparable cases. It is requested that applying the doctrine of consistency, the net profit on the gross turnover may be directed to be estimated at 0.47%. 7. We have considered the submissions made. As per the paper book filed, the net profit rate of the assessee during the assessment year 2014-15 is worked out to 0.36%. The Ld. AO did not consider the net profit of other petrol pumps of nearby locality which were varying from 0.62% to 0.75%. According to the assessee, on the estimated turnover of Rs. 11,....