2025 (8) TMI 1087

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....ent order passed by the Assessing Officer (in short 'assessing officer') u/s 144 r.w.s. 263 of the Income tax Act, 1961, dated 29.09.2021. 2. The grounds of appeal raised by the assessee are as follows: "1. Ld. CIT(A) has erred in law as well as on fact in upholding addition of Rs. 23,28,800/- u/s. 68 made by ld.assessing officer in order passed u/s 144 r.w.s 263 being cash deposited in bank account." 3. The appeal filed by the assessee, for Assessment Year 2010-11, is barred by limitation by 65 days. The assessee has moved a petition requesting the Bench to condone the delay. The Ld. Counsel for the assessee, submitted that because of the mistake of the Chartered Accountant, the delay of 65 days, has occurred. On the other hand, Learn....

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....ount No. 326210100014083, it has been found that the assessee has made cash deposit of Rs. 23,28,800/- in the above account during F.Y.2009-10. As per the provisions of section 68 of Income Tax Act, 1961, if any sum is found credited in the books of an assessee, the onus lies on the assessee to prove the genuineness of the sum with supporting evidences. Therefore, assessing officer held that the assessee has failed to establish the genuineness of his business activities and failed to establish the source of cash deposit in her bank account. In view of above facts and discussions, the source of cash deposit amounting Rs. 23,28,800/- (in the bank account of assessee) was considered by the assessing officer as unexplained and hence the same is....

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....is not found acceptable. It is also worth noting that all the purchases and sales had been done in cash. No quantitative details has been furnished. Even the sales and purchases are not fully supported by bills. In the circumstances, the book result disclosed by the assessee is rejected and gross profit is estimated at 9.5% of the turnover i.e. Rs. 2,60,086/-. The assessee has already declared G.P. of Rs. 1,76,632/-. Therefore, the remaining amount of Rs. 83,454/- is added to the total income. Penalty proceedings are initiated separately u/s 271(1)(c) of the Income tax Act, 1961 for furnishing inaccurate particulars of income." 8. Therefore, ld. Counsel for the assessee contended that the gross profit estimated by the assessing officer in....

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.... the cash deposit to the tune of Rs. 23,28,800/-, therefore, the assessee is in further appeal before us. 11. We find that assessee is actually engaged in retail business of jaggery (gur) and in course of assessment, trading account, profit and loss account, balance sheet and sample copies of order estimated forms in course of business were submitted, before the assessing officer. The assessee's business is cash oriented- retail business of jaggery (gur), where the customer pays cash, thus, such cash was deposited in the bank account by the assessee, therefore in the bank account of the assessee, only the sale proceeds of assessee's business were deposited, the assessee does not do any other business, therefore entire cash deposited in the....