Entire Bank Deposits Cannot Be Treated as Income – ITAT Directs 8% Profit Estimation

Ramasamy Sathish Vs ITO (ITAT Chennai) Entire Bank Deposits Cannot Be Treated as Income – ITAT Directs 8% Profit Estimation The assessee, engaged in textile trading and money-lending, filed return for AY 2016-17 declaring presumptive income u/s 44AD of ₹3.19 lakh. The case was selected for scrutiny due to large cash deposits of ₹2.89 crore in bank accounts. The assessee explained that the deposits represented textile business receipts, loan recoveries with interest, and redeposit of earlier cash withdrawals. The AO examined the bank transactions and, after granting credit for certain...