Income Tax Officer Vs Sri Shaik Zameer (ITAT Hyderabad)
There is no reason why the cash deposits should be assessed U/s. 68 when cheque deposits were accepted as business turnover. We find the reason given by the Ld. CIT(A) in treating the entire amount as turnover is reasonable on the facts of the case. Moreover, income is also estimated as assessee has not co-operated in the proceedings. Since assessee is involved in transport business and income was determined at 10% as against 6% of the AO, we have no option than to confirm the order of CIT(A) in the appeal of Revenue. However, it should be considered that this order should not come in the way of determining the total turnover and rate of income in the case, assessee has preferred any appeal which was not brought to our notice. Subject to these observations, appeal of Revenue is dismissed.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal by Revenue against the order of the Commissioner of Income Tax (Appeals)-Tirupati, dated 31-03-2017, treating the deposits made in the bank account as business turnover, whereas AO was of the opinion that these are unexplained income U/s. 68 of the Act.
2. Condonation: The appeal was filed with a delay of four days. It was explained that the charge was held as additional charge and there was a delay in getting authorization from CIT. Considering the affidavit filed by AO, the delay is condoned and appeal memo is admitted.
3. Briefly stated, assessee is deriving income from transport contracts and declared total income of Rs. 3,32,420/-. In the scrutiny assessments, AO came to know that assessee has lot of deposits in the bank accounts both cheques and cash. The cheque deposits were accepted as business turnover and income was estimated U/s. 44AD of the Act at Rs. 6,13,395/- but the cash deposits were brought to tax U/s. 68 to an extent of Rs. 60,57,696/-.
4. Ld. CIT(A) after the appeal was preferred, gave relief by treating cash deposits also as turnover and determined the total income as under:
“4. All the grounds relate to two additions made by AO based on deposits in appellant’s bank accounts. As per the Assessment Order appellant maintained 3 bank accounts and certain amounts were found to be deposited as under:
