TaxTMI 
TaxTMI 
2022 (11) TMI 360
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....return of income u/s 44 AD of the Act. 2. The assessee has declared return of income of Rs.3,10,200/- u/s 44AD of the Act showing total sales proceeds at Rs.30,18,825/- on account of clay, rori and bajri proceeds a commission of income tax at Rs.1,20,000/- from a sale of stone during the year under consideration in compliance to the questionnaire issued by the AO. The ld. AR filed a reply dated 02.10.2013 stating therein that assessee was carrying business of supplying loose clay, rori and bajri being carried out from his residence. The AO has not been satisfied with the reply of the assessee that he has not maintained the books of account so no documentary evidences were produced to substantiate his sales claimed to extent of Rs.52,13,825....
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....h deposit of Rs.14,19,650/- in the two bank accounts of the appellant and balance and thus the balance of Rs.20,86,691/- (Rs.24,17,265 - 3,30,574) were held to be unexplained cash deposit and confirmed u/s 68 of the Act. 4. Aggrieved, with the impugned order and the assessee filed an appeal before us, objected to the confirmation of the addition of Rs.20,86,691/- u/s 68 of the Act without appreciating the facts of the case and ignoring the turnover of Rs.52,13,825/-, the sales effected during the second part of the financial year in particular. The ld. counsel for the assessee has submitted that the assessee has provided the details of the cash deposits in the IDBI and PNB Bank being deposited out of the sales made amounting to Rs.52,13,82....
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....evidences in order to hold that the particular bank deposits were other than the cash sale receipts. The Ld. CIT(A) was required to prove the contrary to what is claimed by the assessee during that particular period. The Ld AR contended that the parallel corresponding sales have been accounted by credit receipts and thereby the same cash amount of the sales receipt were deposited in the bank accounts of the assessee. 6. The Ld addl. CIT(DR) supported the impugned order. 7. Heard the rival contentions, perused the material on record and written submissions filed before us. Admittedly, the assesse declared deemed profit u/s 44AD of the Act of Rs.4,17,106/- being 8% of Rs.52,13,825/- business turn over. 8. Section 44 AD of the Act reads as ....
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....e of the assessee. This is also the purport of all provisions relating to presumptive taxation. 10. From an analysis of section 44AD of the Act contained hereinabove, we are of the view that the assessee had not incurred the expenses to the extent of 92% of the gross receipts. Therefore, in the present case, the provisions of section 69A of the Act cannot be applied. Asking the assessee to prove to the satisfaction of the Assessing Officer, the expenditure to the extent of 92% of gross receipts, would also defeat the very purpose of presumptive taxation as provided under section 44AD of the Act or other such provision. Since the scheme of presumptive taxation has been formed in order to avoid the long drawn process of assessment in cases o....
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....estimated at 8 per cent of the gross receipts paid or payable to the assessee in the previous year on account of such business or a sum higher than the aforesaid sum as may be declared by the assessee in his return of income notwithstanding anything to the contrary contained in sections 28 to 43C of the Act. This income is to be deemed to be the profits and gains of said business chargeable of tax under the head "profits and gains" of business. However, the said provisions are applicable where the gross receipts paid or payable does not exceed Rs. 40 lakhs. 8. Once under the special provision, exemption from maintaining of books of account has been provided and presumptive tax at the rate of 8 per cent of the gross receipt itself is the ....