TaxTMI 
TaxTMI 
RETURN WAS FILED UNDER 44AD, CONTRACT RECEIPT WAS 37LACS. FIRSTLY A.O. TREATED CONTRACT RECEIPT AS UNEXPLAINED INVESTMENT U/S 69. AFTER APROACHING C.I.T (APPEALS) IT ORDERED THAT TREATING CONTRACT RECEIPT AS UNEXPLAINED NVESTMENT HAS NO MERIT, BUT HE DISALLOWED THE EXPENSES SHOWN IN PROFIT AND LOSS ACCOUNT RELATED TO CONTRACT AND THUS ENHANCED THE APPEAL. WHEN a return is filed u/s 44AD, then how the expenses shown in Profit/loss account be disallowed.
Expenses related to contract - disaalowed
28 May 2009 
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Presumptive taxation allows a taxpayer to claim lower profits if books are maintained and audited.
Under the presumptive taxation scheme an assessee may claim profits lower than the deemed rate only if the assessee keeps and maintains the required books of account and obtains and furnishes an audit report; compliance with these bookkeeping and audit conditions is the operative basis for recognising actual expenses and computing lower taxable profits instead of the deemed presumptive income. (AI Summary)
Under the presumptive taxation scheme an assessee may claim profits lower than the deemed rate only if the assessee keeps and maintains the required books of account and obtains and furnishes an audit report; compliance with these bookkeeping and audit conditions is the operative basis for recognising actual expenses and computing lower taxable profits instead of the deemed presumptive income. (AI Summary)