2026 (8) TMI 477

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....which in turn arises out of an order passed by assessing officer u/s. 144 of the Act, dated 28.06.2019. 02. Brief facts of the case are that the assessee is an individual and the proprietor of Life Care Medical Store, engaged in the business of trading in pharmaceutical and medical products. The assessee is duly registered under the relevant provisions governing the business of medicines in the State of Gujarat. For the assessment year under consideration, the assessee did not file the return of income. During the course of assessment proceedings, it was noticed that the assessee had deposited substantial cash in his bank account maintained with HDFC Bank, Gandhidham. In order to verify the source of such deposits, summons under section ....

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....oods and Services Tax Act, VAT registration details, and the audited financial statements comprising the Profit & Loss Account and Balance Sheet. It was submitted that the cash deposits in the HDFC Bank account were nothing but business receipts generated from retail cash sales of medicines. The assessee demonstrated that the turnover for the year under consideration was Rs. 58,34,291/-, on which a net profit of Rs. 5,30,864/-, being 9.10% of the turnover, was earned. The Ld.AR also placed on record the financial performance of the assessee for the various assessment years as under: Assessment Year 2016-17 2017-18 2018-19 2019-20 Turnover (Rs.) 49,58,038 58,34,291 94,80,691 91,69,625 Net Profit (Rs.) 7,56....

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....willing to offer the business income of Rs. 5,30,864/-, being the net profit at 9.10% on the turnover of Rs. 58,34,291/-, for the purpose of bringing the dispute to an end. 05. On the other hand, the Ld. DR supported the orders of the authorities below. However, he could not controvert the factual position that the assessee was carrying on a genuine medical business and that the turnover for the year under consideration was Rs. 58,34,291/-, on which the assessee had disclosed a net profit of Rs. 5,30,864/- 06. We have heard the rival submissions and carefully perused the material available on record. We find that the assessee is carrying on a genuine business of trading in medicines through Life Care Medical Store. Though the assessme....