2020 (4) TMI 818

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....had not been given due opportunity to defend its case on income being charged under the provision of 69A of the Act." 3. The assessee filed his return declaring income of Rs. 6,32,710/- on 19,07.2011, and assessment u/s 143(3) of the Income Tax Act, 1961 completed 24.02.2014. The assessee is a retired teacher from Jamia Milia Islamia School, Jamia Nagar, New Delhi. The assessee had shown income from Civil Contractor Business, Pension and Interest Income. The assessee has claimed that during the year under consideration, he has under taken construction work and achieved turnover of Rs. 50,50,000/-. It was claimed by the assessee that he was not maintaining the books of account and his return has been file under the provisions of Section 44AD of the Act. 4. The Assessing Officer noticed that assessee claimed to have received contract receipts of Rs. 50,50,000/-. Therefore, he asked the assessee to establish the same as contractual receipts by producing supporting documentary evidences like copy of agreement, details of property, details of payment received and material purchased along with bills or any other evidence to establish that the above receipt is a contractual receipt. In ....

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....erifiable from the bank statement of the assessee. The revenue held that information supplied by the appellant is not sufficient to cross verify his contention. 7. The ld. CIT (A) further held that during the assessment year under consideration, appellant declared business income of Rs. 4,04,000/- as per provisions of Section 44AD of the Act claiming that no books of accounts are required to be maintained once the tax is paid as per rates prescribed under this Section. The ld. CIT (A) also held that it is prescribed u/s 44AD that books are not required to maintain if assessee declares income as per Provisions of Section 44AD. However, the ld. CIT (A) placed a rider that a duty is cast, upon the appellant to establish the fact that he was really engaged in business. The undisputed fact that there was no past history of the assessee to show that he was in the construction business either before or after this year. Hence, the ld. CIT (A) held that this proposition raise doubt about the authenticity of claim of the appellant that only during the assessment year under consideration, the assessee conducted activity of construction. On perusal of the bank account, the ld. CIT (A) held th....

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....duly produced before the revenue which reflects the same address on which the construction activities has been undertaken. Hence, the allegation of the revenue that the payer has not filed the ITR and consequent confirmation in the hands of the assessee cannot be held to be valid. 14. Regarding the payment made by Sh. S.U. Khan, we find that he has responded to the notice issued u/s 133(6) through Speed Post vide letter dated 26.02.2014. He was working in Afghanistan as an employee of FAO/UN. Hence, the allegation of the revenue that the payer has not filed the ITR and consequent confirmation in the hands of the assessee cannot be held to be valid. 15. The bank statement of the assessee shows that number of payments have been made against the purchase of items like Iron, Steel, cement and other building materials. Hence, it cannot be said that the assessee has not executed the work of construction activity. The returns of the assessee for the assessment year 2010-11 examined by the revenue u/s 147 proved the fact that the assessee is in the business of manufacturing the sign boards and registered with Delhi VAT department. We also find that the amounts received by the assessee ar....

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....ous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1). (5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.] 19[(6) The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to- (i) a person carrying on profession as referred to in sub-section (1) of section 44AA; (ii) a person earning income in the nature of commission or brokerage; or (iii) a person carrying on any agency business.] Explanation.-For the purposes of this section,- (a....