Turnover Adoption under Presumptive Taxation requires recomputation adopting the higher recorded turnover; matter remitted to AO.

Where a higher recorded turnover was available, treating the difference between profit-and-loss turnover and computation turnover as unexplained cash was unsustainable; the correct legal prescription is to adopt the higher recorded turnover for computing income under the presumptive taxation scheme. The operative effect is remand to the Assessing Officer for limited recomputation of taxable income under the presumptive regime adopting the higher turnover, with all other issues left open for the Assessing Officer to examine on remand.

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Issues: Whether the addition of Rs. 25,97,322/- as unexplained money can be sustained where the higher turnover figure of Rs. 79,86,622/- was available on record and the matter requires recomputation under presumptive taxation.

Analysis: The Tribunal examined the orders and materials on record and found that the correct turnover figure of Rs. 79,86,622/- was available before the Assessing Officer. The Assessing Officer had treated the difference between the turnover shown in the profit and loss account and the turnover in the computation as unexplained cash, and added Rs. 25,97,322/-. The Tribunal noted that the higher turnover figure could have been adopted for computing income under presumptive taxation and that treating the difference as undisclosed without addressing the available records was unsustainable. Considering the totality of facts and the short delay in admission, the Tribunal remitted the matter to the file of the Assessing Officer for the limited purpose of computing taxable income under presumptive scheme by adopting turnover at Rs. 79,86,622/-, leaving other issues open to be considered by the Assessing Officer in the remand exercise.

Conclusion: The appeal is partly allowed by remanding the matter to the Assessing Officer for recomputation of taxable income under presumptive taxation adopting the turnover of Rs. 79,86,622/-.

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