2026 (6) TMI 467

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.... the addition of Rs. 18,15,787/- made on account of undisclosed income in the hand of the assessee. 2. The Ld. CIT(A) has erred in deleting the addition of Rs. 18,15,787/- made on account of undisclosed income and ignoring the facts that assessee was failed to produce any documentary evidence in respect of expenditure made for income earned and proof of ownership of the property. 3. That on the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs. 73,84,020/- made on account of unexplained assets (jewellery). 4. The Ld. CIT(A) has erred in deleting the addition of Rs. 73,84,020/- made on account of unexplained assets (jewellery) and ignoring the facts that the assesse....

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....her notice u/s. 142(1) cum questionnaire issued on 5.11.2018 for compliance on 14.11.2018 of the Act. In response to the aforesaid notices, Ld. AR attended the hearings and furnished the details from time to time. After considering the same with regard to income earned from paying guest, AO noted that assessee has decided to offer income after deduction by the Department and therefore, she is not eligible for benefit of u/s. 44AD of the Act. Since the assessee failed to discharge her onus to prove that the expenditure was incurred for the purpose of business, the claim of expenditure was not accepted, however, 30% of gross receipts was allowed as expenditure on estimated basis and Rs, 18,15,787/- was added to the total income of the assesse....

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.... has passed a well reasoned order which does not need any interference on our part. 6. We have heard the rival contentions and perused the records. As regards deletion of addition of Rs. 18,15,787/- is concerned, it is noted that assessee has shown net income from this business more than the minimum prescribed rate of @8% of the gross receipts and once her case fall under section 44AD, the assessee is not required to maintain the books of accounts and documents to justify the expenditure for earning these gross receipts. The estimation of expenses and consequent income, in cases falling u/s. 44AD and showing income more than the prescribed rate of @8% of the gross receipts, is not within the domain of the AO, hence, addition made on esti....