A huge amount of money was found to be deposited in bank account of assessee.\u00a0 Assessing Officer made addition under section 68 on account of such amount of money.\u00a0 Tribunal held\u00a0 that along with deposits made by assessee there were simultaneous withdrawals from its bank account leaving behind a negligible balance and such deposits and withdrawals from bank represented trading activities of assessee\u00a0 Thus, assessee had discharged her burden by furnishing details that transactions reflected in bank statements were in connection with its business.\u00a0 Further, revenue had not brought anything on record suggesting that assessee had so much of income as computed by Assessing Officer.\u00a0 As such, deposits in bank could not be treated as income on standalone basis without considering consequent withdrawals.\u00a0 Tribunal estimated income at rate of 2 per cent of amount deposited with bank. High Court up held the order of Tribunal. Followed ITA No. 196 of 2020 dt. 5-10-2020. (2021) 430 ITR 253(Guj) (HC). (AY. 2003-04)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Bank deposits-Unexplained money-Estimate of profit-Assessment-Withdrawal and cash deposited in bank-Trading activities-Tribunal was justified in estimating income at rate of 2 per cent of such amount deposited with bank. [S. 143(3)] <\/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-30284","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7Ss","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30284","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=30284"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30284\/revisions"}],"predecessor-version":[{"id":30285,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30284\/revisions\/30285"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=30284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=30284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}