Case Law Details
Sh. Amit Jain Vs ITO (ITAT Agra)
Conclusion: Since the cash deposit made by assessee was from the business activities of glass bangle trading business, therefore, no addition under section 69 over and above the returned income would be warranted.
Held: Assessee had derived income from remuneration and interest from three partnership firms and also derived income from glass bangle business. During the course of assessment proceedings, AO noted that assessee had deposited cash aggregating to Rs. 8,70,000/-. AO was of the opinion that assessee had failed to prove that the above cash deposit represented his business turnover. Therefore, an addition was made under section 69 after allowing credit of the business income of Rs. 70,050/- as shown by assessee under section 44AD. It was held following the decision of the co-ordinate Bench in assessee’s own case wherein it was held that on furnishing of affidavit of assessee, affidavits of few of its customers, confirmation from few customers; that the memoranda of business maintaining in the shape of customer diary and in the light of overwhelming evidences on records, uncontroverted testimony of assessee on oath and its customers, the view adopted by CIT (A) in holding bank Deposits to be from the business activities of glass bangle trading business could not be said to be unjustified. Thus, AO was directed to apply net profit rate of 5% on bank deposits of Rs.8,70,000/- which worked out to Rs.43,500/- giving credit to the income of Rs.70,050/- already shown under section 44AD, credit of which was rightly allowed by AO. In effect no addition over and above the returned income would be warranted.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is filed by the assessee against the order dated 10.03.2017 passed by the Ld. CIT (Appeals)-I, Agra {CIT (A) } for the assessment year 20 13-14.
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