GOPAL PRASAD KASERA,BANKA vs. ITO, WARD- 1 (4), BHAGALPUR

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 02.03.2024 for the AY 2013-14.

3.1. The facts in brief are that the assessee did not file any return of income for the impugned assessment year. The assessee is engaged in the business of retail and wholesale of cycles and its spare parts. The learned AO received information that assessee had deposited ₹19,28,000/- in his bank account maintained with SBI during the instant financial year. Accordingly, the assessee was issued notice which was complied with. Consequently, the case of the assessee was reopened u/s 147 of the Act that income has escaped to the extent of ₹19,28,000/-. Notice u/s 148 of the Act was issued on 11.07.2018, which was complied with for filing the return of income on 25.09.2018, declaring total income of ₹2,17,459/-. During the course of assessment proceedings, the learned AO observed that the assessee has a gross turnover of ₹3,31,86,593/-, on which the assessee has declared profit of ₹2,17,459/-. The learned AO noted that the books of account were audited and assessee has not furnished the audited report within the due date because the income was below the taxable limit. Finally, the learned AO noted from the bank account statement with SBI that assessee has deposited into the bank account cash as well as through transfers aggregating to ₹4,74,34,667/-. AO noted that there was a difference of ₹1,42,48,074/- between the turnover declared by the assessee in the books vis a vis total deposits in the bank account. Accordingly, the learned AO treated the total amount deposited into the bank account of ₹47,43,457/- as turnover and income was estimated at the rate of 8% which comes to 37,94,773/-. After allowing credit for income 3.2. In the appellate proceedings, the appeal of the assessee also dismissed by the learned CIT (A).