RAJENDRA PANNALAL BORA ,YAVATMAL vs. ITO WARD - 1, YAVATMAL, YAVATMAL

The sole grievance of the Assessee is against the addition u/s.69A of the Act at Rs.9,44,599/-. At the outset, Learned Counsel for the Assessee submitted that the Assessee runs the business under the name of Jain Digital World and that the alleged unexplained money is part of the business receipts appearing in the bank account duly disclosed in the Income Tax Return and that the assessee is agrees to offer tax on the net profit element @ 8% of the alleged sum.

On the other hand, Learned Departmental Representative supported the order of Learned CIT(A).

I have heard the rival submissions and perused the record placed before me. I observe that the assessee is an individual and during Assessment Year 2017-18 information about cash deposit of Rs.7,40,500/- and Rs.77,14,500/- in the bank account held with Andhra Bank came to the knowledge of the Assessing Officer who thereafter carried out the proceedings u/s.147 r.w.s144B of the Act. Learned Assessing Officer after duly examining the book of account of sole proprietor concern M/s.Jain Digital World only remained dissatisfied with the explanation about the cash deposit of Rs.9,44,599/-. I note that the assessee has offered the income of Rs.6,30,790/- in the return filed in response to notice u/s.148 of the Act. The alleged sum has been deposited in the bank account through which assessee has carried out the business transactions which Learned Assessing Officer has accepted. I am therefore of the concerned view that since the alleged sum is part of the business receipts therefore only the profit element on such business receipts is liable to be taxed. Thus, applying the provisions of section 44AD of the Act, I sustain addition of Rs.75,565/- which is 8% of the alleged sum and delete the remaining addition of Rs.8,68,994/-. Finding of learned CIT(A) is reversed and grounds of appeal raised by the assessee are partly allowed as per the terms indicated above.

In the result, the appeal of the assessee is partly allowed.

The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, न गपुर SMC बेंच, 4. न गपुर / DR, ITAT, “Nagpur SMC Bench, Nagpur ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,