The Tax Publishers2019 TaxPub(DT) 8426 (Ctk-Trib)

INCOME TAX ACT, 1961

Section 44AF

Where for relevant assessment year, assessee showed net profit @ 10% to arrive at business income, which was higher than rate of 5% prescribed by legislature for computing the profits and gains of retail business, thus, there being no dispute regarding estimation of net profit, no further addition was required.

Presumptive taxation under section 44AF - Applicability of provision - Assessee showed higher profit than prescribed under section 44AF -

Assessee assailed order of CIT(A) resorting to weighted average method, when assessee had shown gross receipts from retail trading on basis of turnover, which was not disputed by AO or CIT(A). Case of assessee was that she had shown net profit @ 10% which was much higher than minimum of 5% as provided under the statute. Held: Undisputedly, for relevant assessment year, assessee showed net profit @ 10% to arrive at business income, which was higher than rate of 5% prescribed by legislature for computing the profits and gains of retail business, who have turnover less than Rs. 40 lakhs during the relevant financial period. Therefore, assessee herself has shown higher percentage of net profit of the turnover. Since there was no dispute regarding estimation of net profit, therefore, no further addition was required on that point. It is well-established principle of business of accounting that if the assessee's income has been shown or estimated under section 44AF then, assessee is not required to maintain any books of account and no further addition or disallowance is called for regarding his trading expenditure or any other account.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



IN THE ITAT, CUTTACK BENCH

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