Appeal against ao order 143(3)

Dear Sir,

Kindly help me out to solve this case.

 

Assessee shows his income u/s 44 AF and paid more than 5% against his sale Approx.37 Lakh. for the AY 2009-10.

later on the case selected for scrutiny. AO raised questionires & assessee replied all of them.

Asseess made balance sheet & P & L a/c as estimate basis & did not show his Saving bank closing balance of amounting10 Lakh in the balance sheet.

In the end AO asked to show his saving bank account & rasied query to expalin cash transaction in SB account, Assessee filed his reply that he have deposited about 15,79,000/- in his account during the year which was his cash sale & deposited into saving account.   

- such amount was not reflected in business income, despite of clarification "CASH SALES", so the ITO has added the cash at bank ( savings) to the taxable income. 

- he has to establish that this amount was held with himself from earlier years, and not the outcome of trading turnover, only with this method he can be saved under appeal stage.

AO passed a order and added 10 Lakh in his income.

 

1. What are the remedies avilable in appel against AO order when assess comes u/s 44AF.

2. Is it mandatory to expalin all bank trasaction debit & credit side even assessee comes u/AF.

3. As assess fails to mention his credit bank balance of saving account in balance sheet & filled the ITR form with balance sheet.

4. any related case law of Section 44 AF.

Looking forward for your cooperation & support.

 

Thanks & Regards,

Tanveer Elahi

7827470365