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Itba/ast/f/142 (1) /2022 23/1047096297

The document is a letter from an assessee named Kamal Chand to the Hon'ble CIT (A) regarding an income tax assessment for AY 2018-19. [1] The assessee received a notice reopening the assessment under section 147 based on cash deposits of Rs. 6,686,000 shown in AIR, but the assessee claims the actual deposits were Rs. 2,286,000. [2] The assessee's business involves making purchases and payments in cash to workers and suppliers, so frequent cash deposits are normal. [3] The assessee requests that all documents including bank statements and return of income be considered to provide a just assessment.

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Rakesh Dangi
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101 views

Itba/ast/f/142 (1) /2022 23/1047096297

The document is a letter from an assessee named Kamal Chand to the Hon'ble CIT (A) regarding an income tax assessment for AY 2018-19. [1] The assessee received a notice reopening the assessment under section 147 based on cash deposits of Rs. 6,686,000 shown in AIR, but the assessee claims the actual deposits were Rs. 2,286,000. [2] The assessee's business involves making purchases and payments in cash to workers and suppliers, so frequent cash deposits are normal. [3] The assessee requests that all documents including bank statements and return of income be considered to provide a just assessment.

Uploaded by

Rakesh Dangi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TO

Hon’ble CIT (A)

The facless Assesment

Income Tax Department

Sir,

Sub: Your Letter Bearing DIN & Notice No.


ITBA/AST/F/142(1)/2022-23/1047096297(1)

Name of Assesee : Kamal Chand

A.Y. 2018-19

Pan No. : AQEPC1173E

We are in receipt of your above mentioned letter dated 08-11-


2022 refer to the Assessment Proceedings U/s 147 r.w.s 143(3)
of the I.T. Act for A.Y. 2018-19 initiated by issue of Notice
U/s 148 dated 27.03.2022 after passing of order U/s 148A(d) of
the I.T. Act dated 27.03.2022.

Facts and case

Assessee is an individual. For AY 2018-2019, assessee has not


filed a ROI. Annual Information Return details available with
the Income-tax Department revealed that the assessee has made
cash deposits of 6686000/- in to your current account
maintained in union Bank of India. As the assessee has not
filed ROI as per Section 139 (1) the assessment was reopened
and notice u/s 148 was issued against the appellant and
assessee has filed return on Dated 12-May-2022

Nature of business of the assessee


The nature of business of the assessee is of such type that
assessee has to make sufficient withdrawals from the bank and
the same if not used deposited with the bank. The assessee
frequently made withdrawals from the same bank and redeposited
the same cash with the bank during the same year . After
recovery of cash from the customers, the same is deposited
with the bank. It is the nature of business of the assessee
that assessee has to withdraw cash from the bank for purchase
of building material (Iron and steel, cement e.t.c) and also
make payment to daily wages workers and Assessee has also to
make payment to the crushers and suppliers.

The cash flow statement has been prepared out of the cash book
maintained by the assessee. As per ITR filed for the relevant
u/s 148 A.Y.2018-19, it has been clearly mentioned with the
computation chart that the Net profit during the year

from building material and labour service treated as work


contractor supply is Rs. 1966700/- In this line of business,
the net profit comes approximately. The turnover of the
assessee is Rs. 1966700/- and assessee has shown profit of
Rs. 186800/-. The assessee surrenders his income @8% u/s 44AD
on the turnover of Rs. 1966700/- before the Hon’ble
CIT(A),Faceless. The profit @8% comes to Rs. 157336/- but he
has shown net profit of Rs. 186800/-

There are crushers & suppliers an around. Stone Dust and Reti
were purchased on credit basis and when the material was sold
by the assessee, he made payment to crusher’s owners &
suppliers mostly in cash and sometimes through banking mode.
Sales are also made on credit basis mostly. When recovery is
made, cash is deposited with the bank.
Source of cash deposit with the bank by the assessee

The nature of business of the assessee is such that mostly


recovery of the material sold is done in cash. Sale of
material is done on credit basis and sometimes cash and
purchase of material is also done on credit basis and in cash.
The sources of cash deposited with Current Account are as
under:

(a) Cash in hand as on 31.3.2018

(b)Cash sales of building material

(c) Cash recovered from debtors on sale of Building material


for the current financial year and for FY 2017-18

Bank not fully checked by the AO

Misclassification of Annual Information Return details


available with the Income-tax Department revealed that the
assessee has made cash deposits of 6686000/- in to your
current account maintained in union Bank of India.But As per
available information with Assessee he has cash deposit
2286000/- in union current account and saving account.

ITO Ignored Peak figure of the Bank

AO has not bothered to arrive at a reasonable figure looking


at peak figure of the cash deposited with the bank . The cash
deposited is nothing but out of the gross receipts of the
assessee and also withdrawals from the same bank and opening
cash in hand.

Prayer to the Hon’ble CIT (A) Faceless for production of all


the documents
1. The Hon’ble CIT (Appeals), Faceless is prayed to give a
chance to produce all the evidences and books of accounts
so that assessee gets full justice as taxing statutes
2. Copies of statement of all the Bank account for the
period from 01.04.2017 to 31.03.2018
3. submit copy of Return of income filed for A.Y. 2018-19 in
response to notice u/s 148
4. All other necessary documents attached which assessee
dealing in the nature of business activities carried
during F.Y.

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