Presumptive taxation claim under section 44AD required fresh examination; assessment remanded for de novo consideration and evidence.

Assessment and appellate orders were set aside because the assessee's claim to presumptive taxation under section 44AD, instead of section 44AE, had not been properly examined on the available facts and additional evidence. The Tribunal held that the nature of the business, the number of trucks operated, the source of bank deposits, and eligibility for the presumptive scheme required fresh scrutiny. To secure compliance with natural justice, the matter was remanded for de novo assessment, with the assessee to be allowed to adduce evidence and establish eligibility for section 44AD if otherwise satisfied on the statutory conditions.

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Issues: Whether the assessment and appellate orders were liable to be set aside and the matter remanded for fresh adjudication after considering the assessee's claim to presumptive taxation under section 44AD of the Income-tax Act, 1961 instead of section 44AE.

Analysis: The assessee had not furnished supporting material before the Assessing Officer, while additional evidence was filed before the first appellate authority but not effectively examined. The factual claim regarding the nature of the business, the number of trucks operated, the source of bank deposits, and the eligibility to opt for presumptive taxation had not been scrutinised on merits. In these circumstances, and to ensure compliance with natural justice, the assessment was required to be redone after admitting and considering the evidence. The assessee was also to be permitted to establish eligibility for the presumptive scheme under section 44AD, and the question of consistency was held to depend on the facts and statutory conditions for each year.

Conclusion: The assessment and appellate orders were set aside and the matter was remanded for de novo assessment, with an opportunity to the assessee to adduce evidence and to claim presumptive taxation under section 44AD if otherwise eligible.

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