Sujit Biswas Vs ITO (ITAT Kolkata)
The assessee is a proprietor of Baba Lokenath Sahal Sabji Bhandar and total turnover disclosed by the assessee during the instant financial year were ₹32,00,500/- against the purchases of ₹15,52,770/-. Assessee filed his return at total income at ₹2,92,240/-. The assessee engaged in the business of purchase and sale of vegetables and also acting as a commission agent on behalf of fruit suppliers/ growers. Assesssee has shown commission income of Rs. 6,94,500/- for rendering his services as commission agent to the fruits/vegetable growers. During the year under consideration assessee deposited cash of ₹1,00,95,750/-, into his bank account. Assessee was asked to explain the difference between the total cash deposits and the turnover shown which comes to around ₹62,00,750/- and why the same should not be treated as unexplained cash credit u/s 68. AO held that assessee is liable for audit u/s 44AB as the turnover has exceeded the prescribed limit and accordingly, the penalty proceedings u/s 271B were initiated for failure to get the accounts audited and also proceedings u/s 271A were initiated for failure to maintain the books of accounts. Finally, the addition of ₹62,00,750/- was made on account of unexplained cash credit u/s 68. Appeal filed before CIT (A) was dismissed.
