2023 (9) TMI 1159

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....ntimation. We have clubbed these appeals for disposal on account of commonness of the issue. 2. Briefly stated, the facts anent to ITA No.940/PUN/2023 are that the assessee filed original return declaring total income at Rs. 10,23,024/-. In the computation of total income, the assessee declared, inter alia, 'Income from business' at Rs. 13,70,000/- u/s. 44AD at a rate higher than 6% of gross receipts amounting to Rs. 1,38,78,040/-. Intimation u/s. 143(1) was issued invoking clause (a)(vi) of the Act determining total income at Rs. 79,32,800/-. The reason for such adjustment has been given as the: "inconsistency in the amounts shown in Sr.No.E3 44ADA (Profits and gains of profession on presumptive basis) of Schedule BP and receipts availa....

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....f Rs. 1,38,78,040/- was declared as gross receipts. Section 44AD was applied for computing income at Rs. 13,70,000/-, which is higher than the stipulated minimum rate of 6% on the gross receipts. The return was processed u/s. 143(1)(a) making the addition by taking note of the provisions of section 143(1)(a)(vi) of the Act. At this stage, it would be relevant to mention that subclause (vi) of section 143(1)(a) provides for making adjustment on the ground that income appearing in Form No.26AS etc. was not included in computing the total income in the return. This provision was inserted w.e.f. 01-04-2017 and remained in force only for one year. Third proviso to section 143(1)(a) mandates that no adjustment shall be made under the sub-clause (....

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....three Forms under this scenario would be excluded from the purview of Sec. 143(1)(a)(vi)." It is glaring from the above that if income has been declared by an assessee under the presumptive income scheme, inter alia, u/s. 44AD, as was also declared by the assessee, then the difference in the receipts in the return with the receipts in the requisite Form (26AS in our case) should be excluded from the purview of section 143(1)(a)(vi). This shows that the per se difference in the amount of receipts shown and as per the requisite Form should not be subjected for addition in terms of clause (vi) of section 143(1)(a). However, an exception has been carved out to this in the same para providing that: "where the presumptive income from business eit....