TaxTMI 
TaxTMI 
2026 (2) TMI 1298
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.... to upload the Form No.36 on 14.09.2024 which has resulted in 01 day delay in filing the present appeal. Having considered the reasons explained by the assessee, we condone the delay of 01 day in filing the present appeal. 4. The assessee has raised the following grounds of appeal: 1. "The order of the Hon'ble CIT (A) is erroneous in law as well as facts of the case. 2. The Hon'ble CIT (A) ought to have observed that the Assessing Officer erred in rejecting the books of accounts u/s 145(3) of the IT Act without appreciating the facts of the case properly and judiciously proceeded to complete the assessment u//s. 143(3) of the IT Act and hence the same is liable to be deleted. 3. The Hon'ble CIT(A) ought to have observed that there is no scope for the Assessing Officer to reject the books of the Appellant as there are no specific defects pointed out by the Assessing Officer to enable him to reject the books. This fact was also explained in detail during the course of appeal proceedings and has duly responded to the notices issued by submitting all the required information in support of the grounds of appeal. However, such submissions were no....
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....per the return of Income, the profits admitted by the assessee as per the return of income are not reliable hence not acceptable. Therefore, there is no other option except to estimate the business profits of the assessee from retail wine business. Therefore, the assessee has been required to show cause as to why his business profits from wine business should not be estimated @3% of the stock put to sale. The assessee has no explanation to offer. Therefore, the business profits of the assessee from wine business are estimated as under: 1. Opening Stock Rs. 10,24,324/- 2. Add: Purchases Rs.5,46,33,808/- 3. Less: Closing Stock Rs. 14,81,046/- 4. Net Stock Put to Sale Rs.5,41,77,090/- 5. 3% there of Rs. 16,25,320 6. Profit Admitted as per the return of income Rs. 12,42,578/- 7. Difference of Business Profits Rs. 3,82,742/- 8. Add: Consultancy Fee Rs. 95,444/- 9. Total Difference of Business Profits now brought to tax Rs. 4,78,186/- 5.1. Thus, the results as declared by the assessee in the return of income were not supported by the books of accounts and accordingly, in the facts and circumstances of the....
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....ise, the learned Authorised Representative of the Assessee has submitted that the deposits were made from the sales of the assessee which are duly reflected from the record and also manifest from the bank account statement of the assessee. He has referred to the bank account statement of the assessee and submitted that the assessee has been regularly depositing the cash generated through the cash sales of the assessee and the said deposit is used for purchase of the liquor. Thus, the entries in the bank account itself show the nature and source of deposit as well as the utilisation of the same being payment for purchase of the liquor. Thus, the learned Authorised Representative of the Assessee has submitted that once the cash sales of the assessee is more than sufficient to explain the source of cash deposit then, the same cannot be added u/sec.69A of the Act. He has further contended that the Assessing Officer has also applied sec.115BBE of the Act which is also not applicable in the case of the assessee when the entire transactions are recorded in the books of accounts of the assessee. The learned Authorised Representative of the Assessee has referred to the balance sheet of the ....
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....uring the hearing held on 06.12.2019 the assessee has stated that the sources of cash deposits are out of the sales made and the cash balances available as on 08 11.2016, however, he is not in a position to substantiate the same with any documentary evidence. In view of the assessee's failure in furnishing satisfactory explanation with regard to the sources of funds for the cash deposits made, during the hearing held on 06.12.2019, vide order sheet notings at page-2, the assessee has been required to show cause as to why the amount of Rs. 72,45,860/-, deposited in Specified Bank Notes during the period 09.11.2016 to 31.12.2016 should not be treated as Unexplained Money as per the Provisions of Section 69A of the I.T.Act, 1961. The assessee has no explanation to offer. Therefore, the amount o, Rs,72,45,860 is treated as Unexplained Money in the Bank Account of the assessee as per the Provisions of Section U/s 69A of the I.T. Act, 1961, which attracts the tax rates as per the Provisions of Section 115BBE of the I.T. Act. 1961. 7.1. During the assessment proceedings, the AO issued a show-cause notice dated 03.12.2019 thereby fixing the case for hearing on 06.12.2019 to th....
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....once the deposit in the bank account is part of the books of accounts and the same is utilised for the purchase of liquor then, the provisions of sec.69A cannot be invoked. For ready reference sec.69A of the Act is quoted as under: "Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year." 12. Thus, the addition u/sec.69A of the Act on account of inter alia, unexplained money can be made only when the assessee is found to be owned any money, bullion, jewellery or other valuable articles which is not recorded in the books of account, and the assessee offers no explanation about t....