TaxTMI 
TaxTMI 
2024 (2) TMI 154
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....2. The following grounds of appeal raised by the assessee: 1. That on the facts and in the circumstances of the case, the various addition made is unsubstantiated on the strength of any evidence brought against the assessee, being opposed to facts and law on several grounds, such assessment framed u/s 143(3) and consequential levy may very kindly be struck down from its root. 2. The learned CIT(A) has erred on facts and in Law while confirming the addition of Rs.6,48,328/- on account of undisclosed profit from contract work. 3. The learned CIT(A) has erred on facts and in law while confirming the addition of Rs. 3,60,000/- on account of transportation income. 4. The appellant craves leave to add, urge, al....
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....ividual, proprietor of M/S Jai Crusher Industries which is engaged in the business of transportation, contract work and hiring /renting of JCB Machine etc. On the basis of audited accounts, the assessee has filed its return of income on 30.03.2017 declaring total income at Rs. 9,52,570/-. The case has been selected for scrutiny under CASS and the Id. Assessing Officer has issued notices u/s 143(2) and 142(1) of the Act. That the Id. Assessing Officer has assessed the income u/s 143(3) at Rs. 20,14,290/- making addition of Rs. 6,48,328/- on account of undisclosed income u/s 44AD and Id. AO has taken net profit rate @ 37%. Further, the Id. AO has applied section 44AE of the Act and made addition of Rs. 3,60,000/- on account of transportation ....
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....utiny, this was a gross violation on the part of Ld. AO, who has not complied with the instructions of CBDT vide no. 20/2015 and 07/2014. It is therefore, requested that the order passed by the Ld. AO is erroneous and bad in law and therefore, the same is liable to be struck down. Ld. AR on this aspect has relied upon various case laws as submitted in the written submission of the assessee. 6.2 Ld. Sr. DR on this aspect has vehemently relied on the order of Ld. AO. 6.3 We have considered the rival submissions, perused the material available on record and case laws relied upon by the Ld. AR. In the present case, admittedly the notice u/s 143(2) was issued for initiating the scrutiny assessment u/s limited scrutiny category to examine t....
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....,62,245/- and 2,90,000/-, respectively, such figures are duly evident from form 26AS of the assessee. Ld. AO has mis construed the amounts from the ITR of the assessee wherein the net profit shown includes profit from contract receipts u/s 44AD as well as transportation receipts u/s 44AE. Ld. AO have not doubted the business of the assessee under both the above sections in which presumptive deemed profit can be offered for taxation. Ld. AO have not considered the submission of the assessee that the total profit shown includes deemed income of Rs.3,60,000/- u/s 44AE, on the contrary Ld. AO with his own preconceived presumptions have formed an opinion that the assessee is having other contract receipts also apart from the receipt shown in for....
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....he other hand strongly relied on the order of Ld. AO and Ld. CIT(A). 7.3 We have considered the rival submissions, perused the material available on record and case laws submitted for our consideration. On perusal of the assessment order, it is discernible that the Ld. AO has accepted the contentions of the assessee on the basis of substantial evidence that the assessee is engaged in two categories of business i.e., business of contract work and transportation. Both these activities of the assessee are undoubtedly, covered by the provisions of section 44AD and 44AE, respectively. Assessee's income from contract business was for Rs.17,52,245/- is duly backed by the details available in form 26AS of the assessee. Apart from contractual rec....
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.... deemed profit u/s 44AD as well as u/s 44AE. Ld. CIT(A) have decided the issue though on merits but by accepting the view of the Ld. AO in absence of any further submissions by the assessee, therefore, the same was again only the affirmation to the view taken by the Ld. AO with no further findings. 7.4 Under such facts and circumstances, after careful going through the case records, we are of the considered view that the assumptions made by Ld. AO are without any basis, on the contrary the basis adopted by the Ld. AO was itself conflicting at places when the percentage of profit was calculated on the basis of turnover in 26AS, but have presumed that the turnover shown in 26AS was not considered by the assessee in the returned income, Ld.....