2026 (1) TMI 30

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....sessee has made huge cash deposit amounting to Rs. 2,61,10,199/- and the assessee filed his ROI after issue of notice u/s 148 of the Act and the assessee failed to explain his sources of cash deposits amounting to Rs. 2,61,10,199/- with documentary evidences. Therefore, the order of the CIT(A) deserve to be set aside and to be remitted the file to AO for fresh assessment after giving proper opportunity. 2. The Ld. CIT(A) failed to appreciate the facts that the assessee had shown his total receipts of Rs. 2,31,83,247/- in his ROI which is less than his total cash deposits of Rs. 2,61,10,199/-. Therefore, the said excess amount of Rs. 29,26,952/- not considered and shown in his ROI for the year under consideration. 3. The Ld....

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....l of credit side of account maintained with M/s Shri Renuka Mata Multi State Urban Cooperative Society. 4. After considering the reply of the assessee, Ld. CIT(A)/NFAC partly allowed the appeal of the assessee by observing as under :- "4.3 The appellant had requested since the AO had already accepted the business activities done in the name & style of SRMSC, the addition u/s 68 is not to be made. Whereas, alternatively submitted that he may kindly be granted peak credit or income may be taken at 1 or 2% as per the previous year's net profit since the average gross margin in the line of business operates at 4% of sales. With regard to the above discussion, the above claims of the appellant's business with SRMSC are found to true.....

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.... 7. Apart from above, Ld. DR also submitted that the total receipts of the assessee are more than Rs. 1 crore and therefore the assessee was required to get his accounts audited and the assessee has violated the provisions of section 44AB of the IT Act. 8. Ld. AR appearing from side of the assessee requested to dismiss the appeal filed by the Revenue. 9. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that Ld. CIT(A)/NFAC has partly allowed the appeal of the assessee wherein he has accepted the contention of the assessee that he is involved in business of grain merchant and the whole of the deposits made in the impu....