TaxTMI 
TaxTMI 
2016 (4) TMI 1086
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.... (Appeals) erred in law and on facts by not accepting the claim of Your appellant of income offered for taxation on presumptive basis u/s. 44AF of the Act and has confirmed addition @ 25% of total purchase amounting to Rs. 3,42,757/- as added by the Leaned A.O. Since Your appellant is engaged in retail trading of bags, suitcases an Trunk of VIP Limited is entitled for filling of return of income u/s. 44AF of the Income Tax Act, the assessment made by the A.O.by rejecting the plea of Your appellant of provisions of Section 44AF of the Act may please be deleted. 2. Without prejudice the Ground of Appeal at Point 1 above, the learned CIT (A) has erred in upholding addition on account of Disallowance of business expenditure to the extent of 1....
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....f purchases Rs.3,42,757/- 2 Addition on account of disallowance of expenses Rs.60,022/- 3 Addition on account of unexplained creditors Rs.5,063/- 4 Addition on account of unexplained credit Rs.1,48,302/- 3. Aggrieved, assessee went in appeal before ld. CIT(A) who partly allowed the appeal of assessee by dismissing the ground of applying provisions of section 44AF of the Act as per business of assessee, deleted addition for unexplained creditors of Rs. 5,063/- and addition on account of unexplained credit of Rs. 1,48,302/- and partly sustaining disallowance of business expenses by restricting the addition to 10% instead of 25% of the expenses of Rs. 2,42,086/- worked out at Rs. 24209/- at the place of Rs. 60022/- made by Assessing....
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....d the additions sustained by ld. CIT(A) to be deleted and returned income of the assessee be accepted. 6. On the other hand, ld. DR supported the orders of lower authorities. 7. We have heard rival contentions and perused the material on record. Solitary grievance of the assessee is against the action of ld. CIT(A) for not accepting the claim of assessee for being covered under the presumptive basis under the provisions of section 44AF of the Act and sustaining part of the addition made by ld. Assessing Officer. 8. From going through the record we understand that assessee is a dealer of suitcase, brief case and is engaged in retail sales and majority of its purchases are from Aristocate Luggage Ltd. During the course of assessment procee....
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.... of business or profession": Provided that nothing contained in this sub-section shall apply in respect of an assessee whose total turnover exceeds an amount of forty lakh rupees in the previous year. (2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed : Provided that where the assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) subject to the conditions and limits specified in clause (b) of section 40. (3) The written down value of any asset used for the purpose of the business refer....