TaxTMI 
TaxTMI 
2025 (4) TMI 1888
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....the Act') dated 31.12.2019 by the Assessing Officer, ITO, Ward-2(3)(3), Almora (hereinafter referred to as 'ld. AO'). 2. The first issue to be decided in this appeal is as to whether the ld NFAC was justified in sustaining the addition made in the sum of Rs 6,46,000/- on account of cash deposits in the facts and circumstances of the instant case. The other issue contested by the assessee is as to whether the ld NFAC was justified in confirming the estimated addition of Rs 8,51,280/- in the facts and circumstances of the instant case. 3. None appeared on behalf of the assessee despite issuance of notice. We have heard the Ld DR and perused the materials available on record. The learned AO on verification of data relating to cash deposi....
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....ussed. In his submission, assessee stated that it is an AOP deriving income from the business of sale and purchase of foreign liquor. The AOP was running wine shop at Danya, Almora. 4. The assessee had not filed its income tax return for the year under consideration. The assessee was asked reason for not filing the income tax return even after doing the noticeable business and deducting tax collected at source of Rs 1,63,279/-. The assessee did not submit any satisfactory reply for the same. Required details in respect of allotment of the shop through which the business has taken place for the entire year were also called for by the learned AO by issuing notice under section 133(6) of the Act from the District Excise Office, Almora, in w....
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....nt. Further, the assessee also submitted that it had sufficient cash balance as on 8-11-2016 to make the cash deposits during the demonetization period. 6. The Learned AO observed that cash deposit of Rs 7,57,500/- as explained out of sales made by the assessee AOP and treated the remaining amount of Rs 6,24,000/- as unexplained money under section 69A read with section 115BBE of the Act and made an addition to the total income. 7. Since, the Learned AO had concluded that assessee had engaged in the business of running a liquor shop and they had also made cash deposits for making payments to the suppliers and that purchases were also duly subjected to tax collected at source, the Learned AO proceeded to estimate the net profit arising....
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....h the additions but finally directed the Learned AO to grant credit for tax collected at source of Rs 1,63,279/- as prepaid taxes and recompute the tax liability of the assessee accordingly. Aggrieved, the assessee is in appeal before us. 8. It is not in dispute that the assessee AOP had not filed its return of income for the assessment year 2017-18. The assessee had claimed that it had incurred loss in its liquor business. But this loss had to be substantiated by the assessee with the books of accounts by furnishing relevant documentary evidences before the Learned AO after filing its return of income. None was done by the assessee AOP in the instant case. Hence, the claim of the assessee that it had incurred loss in the liquor business....