APPA RAO MEESALA,RAYAGADA vs. ITO, WARD , RAYAGADA, RAYAGADA

It was submitted by ld AR that the assessee is in the business of running JCB and real estate. It was the submission that the Assessing Officer had found that the assessee was having cash deposits of Rs.72,71,056/- in IDBI Bank. It was the submission that the Assessing Officer treated the entire deposits as unexplained income of the assessee. It was the submission that the assessee has brought on record that the 2 assessee is having another bank account being State Bank of India bearing A/c. No.11038929266. It was the submission that the said account has deposit of Rs.39,44,886/-. It was the submission that deposits are out of business account of the assessee from running of JCB and real estate. It was the prayer that the assessee was unable to provide all the details before the AO and the income may be estimated.

In reply, ld Sr DR submitted that income may be estimated at 8%, which is the minimum prescribed rate u/s.44AD of the Act.

We have considered the rival submissions. As it is noticed that the assessee is honest in declaring his bank accounts, which has also not been noticed by the Assessing Officer. Considering the facts of the case and considering that the assessee is in the business of hiring out JCB and real estate, the Assessing Officer is directed to estimate the income at 8% of the total of both the bank accounts amounting to Rs.1,00,87386/-.

In the result, appeal is partly allowed.