https://www.taxtmi.com/caselaws?id=428087 The tribunal found that the Assessing Officer's (AO) application of Section 44AD for calculating net profit was incorrect as the turnover did not fall under its purview. The AO's approach lacked justification and was inconsistent with the assessee's historical profit margins. The reopening of assessment under Section 147 was deemed invalid as the final addition under Section 44AD did not align with the reasons for reopening. Discrepancies between VAT and income tax returns were noted, with the AO failing to address them under the appropriate sections. The tribunal ruled in favor of the assessee, quashing the assessment order and deleting the addition made under Section 44AD. en-us Tue, 20 Sep 2022 00:00:00 +0530 Fri, 23 Sep 2022 08:26:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=428087 The tribunal found that the Assessing Officer's (AO) application of Section 44AD for calculating net profit was incorrect as the turnover did not fall under its purview. The AO's approach lacked justification and was inconsistent with the assessee's historical profit margins. The reopening of assessment under Section 147 was deemed invalid as the final addition under Section 44AD did not align with the reasons for reopening. Discrepancies between VAT and income tax returns were noted, with the AO failing to address them under the appropriate sections. The tribunal ruled in favor of the assessee, quashing the assessment order and deleting the addition made under Section 44AD. Case-Laws Income Tax Tue, 20 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=428087