The Assessee is a trader of electrical items. The Assessing Officer made\u00a0 an addition under section 69A\u00a0 in respect of cash deposited in to bank account during demonetization period. He also invoked provision of section 44AD and calculated net profit at rate of 8 per cent on rest amount which was also added back with total income of assessee. Commissioner (Appeals) affirmed order of Assessing Officer. On appeal the Tribunal held that the\u00a0\u00a0 assessee is a\u00a0 registered dealer under VAT Act.\u00a0 Turnover declared by assessee was much higher turnover than determined by Assessing Officer in assessment. Further, Assessing Officer without considering earlier years net profit and nature of business had determined NP at rate of 8 per cent. Since cash deposit was part of turnover, addition made by Assessing Officer under section 69A\u00a0 and calculation of net profits was to be restricted to at rate of 3 per cent of turnover amount. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 69A : Unexplained money-Demonetization-Cash deposited-Bank account-Registered dealer under VAT Act-Addition is deleted as regards cash deposit and net profit is restricted to 3% of turnover as against 8% estimated by the Assessing Officer.[S.44AD] <\/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-48728","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cFW","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48728","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=48728"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48728\/revisions"}],"predecessor-version":[{"id":48729,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48728\/revisions\/48729"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}