Treat Credit Entries in Current & Savings Accounts as Gross Receipts from Business, Profit Rate of 8% Applicable: ITAT

Gunaseelan Janaki Radha Vs ITO (ITAT Chennai) Introduction: The Income Tax Appellate Tribunal (ITAT) Chennai, in the case of Gunaseelan Janaki Radha Vs Income Tax Officer (ITO), has ruled that credit entries appearing in current and savings accounts should be treated as gross receipts from business transactions, with an 8% profit rate being applicable. This verdict was reached after the assessee failed to provide any evidence that the profit rate should be lower than the stipulated 8%. Analysis: The case began when Gunaseelan Janaki Radha, a textile business owner, was found to have made cash ...