https://www.taxtmi.com/caselaws?id=773791 The Tribunal allowed the appeal and remanded the matter to the AO for fresh assessment. The assessee with turnover of Rs. 2.97 crore had incorrectly filed return under presumptive taxation scheme (section 44AD), which applies only up to Rs. 2 crore turnover. The AO erred in treating entire gross receipts as taxable income under section 143(1) intimation. The Tribunal held that when section 44AD is inapplicable due to exceeding turnover limits, only net income after expenses can be taxed, not gross receipts. The case was restored to AO for proper determination of net income after allowing the assessee opportunity to produce expense details. en-us Wed, 14 May 2025 00:00:00 +0530 Sat, 28 Jun 2025 08:31:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773791 The Tribunal allowed the appeal and remanded the matter to the AO for fresh assessment. The assessee with turnover of Rs. 2.97 crore had incorrectly filed return under presumptive taxation scheme (section 44AD), which applies only up to Rs. 2 crore turnover. The AO erred in treating entire gross receipts as taxable income under section 143(1) intimation. The Tribunal held that when section 44AD is inapplicable due to exceeding turnover limits, only net income after expenses can be taxed, not gross receipts. The case was restored to AO for proper determination of net income after allowing the assessee opportunity to produce expense details. Case-Laws Income Tax Wed, 14 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773791