2025 (10) TMI 645

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....t Year 2017-18. 2. The matter relates to cash deposit to the tune of Rs. 2,56,75,105/- in the current account and salary income of Rs. 1,23,539/- by the assessee. 3. The brief facts of the case are that the assessee is a Vegetable Vendor. The assessee's business initially was controlled and managed by his father until 14.12.2016 when Govt. of India introduced changes of policy of exports which subsequently put an in-definite stoppage on Assessee's business of exporting tomatoes with neighboring international state, Pakistan. All the remittances got blocked and goods in transit were destroyed at Atari Border, Pakistan, consequently incurring loss to the Assessee in the relevant year under consideration and also compelling the Assessee ....

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....d which was in turn deleted by the First Appellate Authority. Hence, the instant appeal before us. 4. Heard both the parties and perused the relevant materials available on record. While dealing with the matter and granting relief to the assessee, the Ld. CIT(A) passed orders as follows: "7.2.2 The Ld. A.O. confronted this issue to the appellant. During the assessment proceedings, the appellant explained that he was doing business of vegetable selling and as the cash payments are made to the farmers and the sales are also made in cash. The Ld. A.O. did not accept the explanation of the appellant and made addition on the ground that the appellant has failed to furnished evidence of vegetable business. During the appellate proceed....

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....lso not filed by him. The profit shown in the said audit report can also not be acceptable as no supporting documents are provided. Since, this account also contains clearing entries the peak cash credit can also not be worked out. Similarly, the maximum cash availability with the appellant on a given date cannot be taken as his income for the year, as the cash deposits were made from the different part of the country. I have noticed that the appellant has given a reference of a case where 0.17% net profit ratio to the sales is shown, which is very low. Keeping in view of the nature of transactions in the bank account of the appellant 2% (of cash deposit) net profit is attributed to his income of the year. The same is worked out at Rs. 5, 1....