2025 (2) TMI 1371

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....ecific information was flagged, as per risk management strategy formulated by the CBDT, through insight portal of the Department, according to which, the Assessee though has carried out the transactions of Rs. 7,05,703/- (payments to contractors) as reflected in TDS-194C of the Act, during the assessment year under consideration, however the Assessee has not filed any Income Tax Return (ITR) and has not offered the contract receipts for taxation, therefore in order to verify the said transactions, the case of the Assessee was reopened u/s 147/148 of the Act, by issuing notice dated 30.03.2022 u/s 148 of the Act, by which the Assessee was asked to comply with the same, till 30.04.2022. However, the Assessee made no response. Thereafter, a....

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.... Rs. 705,703/- from contract receipts but had not filed ITR. Accordingly, the case was reopened u/s 147. The Assessee filed in ROI in response to notice u/s 148 and claimed that he was opting for presumptive taxation scheme wherein he declared Gross receipts of Rs 12,68,636/-. The AO did not accept the claim of the assessee under section 44AD and added the receipts to income and arrived at a total income of Rs. 12,69,701/-. Aggrieved, the Assessee is in appeal. The Assessee must file income tax return within the due date specified under Section 139(1) of the Income Tax Act to avail of the benefit of Section 44AD. If the taxpayer fails to file the return within the due date under Section 139(1), they lose ....

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....Heard the parties and perused the material available on record. This Court has given thoughtful considerations to the peculiar facts and circumstances of the case, as appears in para no.2 of the assessment order and as demonstrated above. As per Assessment order, the AO though sent various notices and in the response column it is mentioned "not received" but there is nothing on record to suggest that the aforesaid notices, except the notice dated 04.01.2023, in response to which the Assessee filed its return of income on dated 09.01.2023, have ever duly been served upon the Assessee. The Assessee has also demonstrated from the notice sent on 29.03.2022 (page no.35 of paper book) that that notice appears to be issued u/s 148 of the Act, howe....