INCOME TAX ACT, 1961

Section 44AD

Presumptive taxation under section 44AD - Construction business - Assessee, failed to establish that deposits made in bank account were received from contractee -

AO made the addition regarding cash deposits made in the bank account. Assessee submitted that he had filed return of income under sections 44AD and cash deposit was made from the civil contract works and under this section only the profit earned from the business under section 44AD could have been added. Revenue contended that assessee had not substantiated that any work has been carried out by him as a petty contractors from the outside. Held: If assessee offered income under section 44AD then he should separately show in the computation of income that the profit has been earned from civil contract. In the instant case, assessee was unable to substantiate with any external vouchers that the amount was received from the contractee for civil contract works done. Moreover, neither any work order nor any receipts from the contractee has been produced by the assessee. Therefore, as assessee could not establish the deposits in bank account that it has been received from the contractee with cogent materials, AO was justified in making addition regarding cash deposits.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2010-2011

INCOME TAX ACT, 1961

Section 68

SUBSCRIBE FOR FULL CONTENT