2025 (4) TMI 2199

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....raised the following grounds of appeal : "1. That the Learned AO erred in law and on facts in treating the difference of Rs. 6,68,395/- as under-reported sales instead of accepting the voluntary offer of Rs. 6,00,000/- made by the appellant. 2. That the Learned AO failed to appreciate that the appellant is assessed under the presumptive taxation scheme under Section 44AD, and therefore, no books of accounts are required to be maintained. 3. That the Learned AO erred in invoking Section 69 and applying the provisions of Section 115BBE arbitrarily, without establishing any unexplained investment or expenditure. 4. That the Learned AO failed to consider the nature of business and the small-scale operations o....

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....as towards his personal payments and balance of Rs. 15,68,395/- was on accounts of purchases. With regards to deposit of cash in bank, it was explained that, the same was on account of cash sales and advances received for sales. While accepting the explanation in respect of cash receipt of Rs. 9 lakhs, which has been shown as sales, the Ld. AO was not satisfied with the explanation offered in respect of balance amount of Rs. 6,68,395/- and treated the said amount as unexplained investment u/s 69 of the Act. Accordingly, the Ld. AO added the amount of Rs. 6,68,395/- in the hands of the assessee and completed the assessment u/s 143(3) of the Act on 30.09.2019 determining the total income of the assessee at Rs. 11,21,255/-. 4. Aggrieved by ....

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.... deposit, i.e. Rs. 6,68,395/-, was not to the satisfaction of the Ld. AO. In this regards, we have gone through the provisions contained in section 69 of the Act, which is to the following effect: "Unexplained investments. 69. Where in the financial year immediately preceding the assessment year the assessee has made investments which are 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 the investments or the explanation offered by him is not, in the opinion of the "[Assessing] Officer, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year." 8. On perus....