Tribunal held that only a small amount of cash was deposited in the bank, and the remaining amounts were debited to the assessee’s accounts either by cheque, or clearing, or any other mode. Therefore, the assessee’s income was required to be computed treating the entire deposits in the bank as business receipts and applying the gross profit rate over that. \u00a0The assessee had applied a 5 per cent. rate relying upon section\u00a044AF\u00a0of the Act. For applying section\u00a044AF, the total turnover of the assessee must be less than Rs. 40 lakhs. The turnover of the assessee was more than Rs. 40 lakhs. Therefore the rate of 5 per cent. could not be applied as claimed by the assessee. The Assessing Officer had not brought on record that the assessee had any other source of income. Thus, according to section\u00a044AD\u00a0of the Act, the best rate that could be applied would be 8 per cent. on the turnover in all the assessment years.(AY.2009-10 to 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Books of account not maintained-Addition as cash credits not sustainable-Turnover more than Rs. 40 Lakhs-Gross profit rate of 8 Per Cent. can be applied. [S. 44AD, 44AF] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-27592","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7b2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27592"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27592\/revisions"}],"predecessor-version":[{"id":27593,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/27592\/revisions\/27593"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=27592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=27592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}