2025 (8) TMI 381

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....depositing of cash and cheque in the bank and thus, both the grounds are interrelated and interconnected therefore, I have decided to adjudicate these grounds through the present consolidated order. 3. I have heard the counsel for both the parties, perused the material placed on record, judgments cited before me and also the orders passed by the revenue authorities. 4. From the records notice that the assessee in the present case is a trader of plastic items and had opted taxation u/s. 44AD of the Act, for the year under consideration. However, during the course of assessment proceedings, it was observed that assessee made total deposits in banks by cash or otherwise at Rs. 54,05,402/- whereas the gross sales/receipts were disclosed a....

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....e grounds raised by the assessee. 8. Since, the assessee has also taken an alternate prayer to accept the said deposits made out of his business sales and treat profit @ 8% thereon on presumptive basis as envisaged by the law u/s. 44AD of the Act and relied upon the decision in the case of i. Dineshkumar Verma [Hon'ble Income-Tax Appellate Tribunal "SMC" BENch, Mumbai -ITA No. 1183/Mum/2019 Dated 28-12-2020. ii. Mehul V. Vyas [Hon'ble Income-Tax Appellate Tribunal "B" Bench, Mumbai ITA No. 727/Mum/2013] Dated 07-04-2017. iii. Shri Kokkarne Prabhakara [Hon'ble Income-Tax Appellate Tribunal Bengaluru ITA No. 1239/Bang/2019] Dated 11-09-2020. iv. Commissioner of income-Tax Vs. Bhaichand N. Gandhi [1982] 1....

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....king of the power. Discharging of burden is a subsequent condition. If the first point is not fulfilled the question of burden of proof does not arise. The AO made the assessment by making addition of the amount for which disallowance was claimed Mr. Bhuyan very candidly admits that addition was made in exercise of the under-section 68 of the Act, therefore, the first condition necessary for invocation of the power is existence of the books of account." 14. The Tribunal in the case of Madhu Raitani Vs. ACIT (supra) following the decision rendered in the case of CIT vs. Bhaichand N. Gandhi (supra) and Anand Ram Raitani (supra) held that if books of account are not maintained by the assessee, the provisions of section 68 cannot be in....