SAMIRKUMAR JAYANTILAL SHAH,AHMEDABAD vs. THE PR. CIT.-7, AHMEDABAD

Now we come to appeal in ITA No. 2046/Ahd/2017 where assessee was challenged the order of the ld. CIT(A) that he has erred in law and facts by confirming the addition of Rs. 25,72,920/- u/s. 69 of the amount of deposited with the Bank.

The facts of the case in brief are that the assessee filed his return of income on 17.10.2011 declaring total income of Rs.90,000/- as income from salary. The assessment was completed u/s. 143(3) of the I.T. Act at a total income of Rs.1,16,355/- on 24.3.2014. Subsequently, the Pr. CIT-7, Ahmedabad passed an order u/s. 263 of the Act on 21.3.2016 with a direction to the AO to make a fresh assessment in view of the fact that at the time of assessment proceedings, cash deposits of Rs.25,72,920/- in the bank account of the appellant had not been verified and examined. Thereafter, as per the directions of the Pr. CIT, the AO issued the relevant notices to the assessee as per law and after a detailed examination of the facts of the case and submissions made by the assessee during the assessment proceedings, he added the amount of Rs.25,72,920/- u/s 69 of the Act to the total income of the assessee.

Against the order of the A.O., assessee preferred first statutory appeal before the ld. CIT(A) who dismissed the appeal of the assessee.

In this case, assessee’s total turnover is Rs. 32,83,822/- and profit and loss account and the balance sheet has been submitted to the ld. A.O. wherein said

At the outset, ld. A.R. on behalf of the assessee stated that assessee is a small business man and requested that section 44AD may be applied in the case of assessee and business income @ 8% on the turnover of Rs. 32,83,822/- i.e. Rs. 2,62,706/- may be determined. In our considered opinion, the request of the assessee is genuine and we accede to the same and hold that income of the assessee to be determined @ 8% on the turnover of Rs. 32,83,822/-.

In the result, both the appeals filed by the Assessee are allowed.