Case Law Details
Sri Manne Baswa Reddy Vs ITO (ITAT Hyderabad)
The deposits in the bank account pertain to assessee. Assessee had substantial income during the year and that too he is doing retail business in IMFL. There is no allegation that these amounts also pertain to the business by the AO. Since the deposits are through-out the year in small amounts and since the corresponding credits in the books of account are not verified by the AO and the books of account having been rejected, we are of the opinion that the deposits can be telescoped to the income estimated on the business. In view of that we are of the opinion that the deposits in the bank account need not be separately assessed, when income was assessee has disclosed. In view of that, we direct the AO to delete the addition.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal by assessee against the order of the Commissioner of Income Tax (Appeals)-7, Hyderabad, dated 02-08-2017. Assessee is aggrieved on estimation of income in the liquor business as well as sustaining addition of Rs. 1,60,000/- u/s. 68 of the Income Tax Act [Act].
2. Briefly stated, assessee is an individual deriving income from retain trading in IMFL under the trade name of M/s. Sri Durga Wines. Assessee’s books of account were rejected and income was estimated at 5% on the liquor put to sale.
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