TaxTMI 
TaxTMI 
2025 (6) TMI 160
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appeal: "1. On the facts and in the circumstances of the case and in law the Ld. CIT (Appeals) erred in confirming the following actions of the Assessing Officer :- a. initiating proceedings u/s 147/148 of the Act without there being any valid reasons leading to belief of escapement of any income; b. passing order u/s 143(3)/147/148 of the Act determining taxable income at Rs. 54,57,128/- against returned income of Rs. 4,68,380/- without any plausible basis; c. making an addition of Rs. 49,88,748/- on account of cash deposits in bank by capriciously invoking section 68 of the Act; d. not allowing credit for self-assessment tax in a sum of Rs. 55.542/-; e. charging interest u/s 234B of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s returned the income u/s 44AD and has not given any detail of purchases and also not given the any basis of sale of Rs. 55,49,170/-. 2.3 It was noticed that the assessee did not filed return of income voluntarily u/s 139(1) of the Act and has taken recourse to the provision of section 44AD to avoid paying higher tax by hiding under the provisions of section 44AD. 3. On the conclusion of the assessment proceedings, the Ld. AO treated amount of Rs. 49,88,748/-, as income of the assessee under the head other sources having recourse to section 68 of the Act. 4. Aggrieved with the same, the assessee / appellant assailed the order by way of appeal and the Ld. CIT(A) dismissed the same by stating that in the absence of any documentary ev....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 44AD. It is further contended that merely because a notice under Section 148 was issued and the assessee filed a return under Section 44AD, it cannot be the basis of concealment of income. 6.2 Moreover, the AR vehemently argued that it is nowhere written in the law that the presumptive income can be availed only when the return is filed within due date as prescribed under section 139(1) and not after. The benefit of declaring presumptive income under section 44AD can justifiably be availed even in case of belated returns. The Learned AR submitted that in the present case; the return was filed belatedly only due to the health issue of the assessee's consultant. Upon receiving the notice under Section 148, the assessee, being lack of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessing Officer. Thus. maintenance of books by assessee was sine qua non for making addition u/s 68. Since section 44AD did not obligate assessee to maintain books, the provisions of section 68 could not be invoked where assessee had filed return of income under the provisions of section 44AD without maintaining books of account. 6.4 The Ld. AR relied upon the decision in Abhi Developers v. ITO [2007] 12 SOT 444 (ITAT Ahmedabad), wherein it was held that the AO has no power to assess anything in excess of returned income if it is according to 44AD. 6.5 The Ld. AR has also submitted that the assessee had declared income from business of Rs. 4,56,697/- on total business receipts of Rs. 55,49,170/-. The breakup of the gross receipts is ....