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4 ITA no.526/Del./2012 3.1 As regards addition u/s 68 of the Act, the ld. CIT(A) concluded as under:-

"5.2.2. I have gone through the facts of the case. On perusal of the computation of income filed by the appellant, it is seen that the appellant declared income from business u/s 44AF amounting to `1,25,250/- on the gross turnover of `9,56,780/- from his business concern namely, M/s Car Cute. After deduction under chapter VIA (LIC u/s 80C) for an amount of `13,252/-, the income was shown at 1,11,998/-. Section 44AF of the Income-tax Act details with special provisions for computing profit and gains of retail business. According to section 44AF, if an assessee is engaged in retail trade in any goods for merchandise, a sum equal to 5% or more of the total turnover in the previous year is declared on account of such business, such income shall be deemed to be the profits and gains of such business and is chargeable to tax under the head 'profits and gains of business or profession'. According to sub-section 4 of this section an assessee is also not liable to maintain books of account as prescribed under section 44AA and 44AB of the Income-tax Act, 1961. It is pertinent to mention here that the issue concerned here is not of the business profits whether declared u/s.44AF or not. The issue concerned is about the source of the deposits those have been credited into the savings bank account of the appellant. The source of such deposits were not explained at all nor any attempt was made by the appellant to explain the same through his AR to the Assessing Officer. A nexus between the business and the source of the deposit has not been drawn by the appellant. Though the turnover is below Rs.40 lacs and the appellant was not required to maintain the books of account in terms of provisions of section 44AF, but the source of Rs.12,99,850/- should have been explained connecting the deposits and business transactions. At least a primary evidence of receipt of such cash out of the sale proceeds in the trading account is required to be shown. Since the appellant or his AR has failed to attend the proceedings and did not satisfactorily prove the source of the cash that has been deposited in the savings bank account of the appellant, I am of the opinion, that the decision taken by the Assessing Officer is correct and justified. Also several opportunities given to the appellant which remained uncomplied only suggests that the appellant is not in possession of any evidence to explain such a source and hence he avoided the proceedings u/s.143. After giving an opportunity as per the law and examining the evidence filed before the Assessing Officer the remand report was sent in an elaborate manner, and about the verification of cash deposits the Assessing Officer stated as under:-