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| The Tax Publishers2020 TaxPub(DT) 2220 (Del-Trib) INCOME TAX ACT, 1961
Section 44AD
Since AO righty invoked the provisions of section 44AD and applied rate of 8% on contract receipts of assessee during year under consideration therefore, request of assessee to restrict rate to 3% was invalid as it was never substantiated by books of accounts nor was a part of provisions of the Income Tax Act.
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Presumptive taxation under section 44AD - Applicability of provision - Assessee pleaded to restrict rate of profit to 3% -
Assessee contested addition of Rs. 55,83,787 made by AO by erroneously applying section 44AD. Held: AO righty invoked the provisions of Section 44AD and applied rate of 8% on the contract receipts of the assessee during the year under consideration. CIT(A) further observed that request of assessee to restrict rate to 3% was never substantiated by books of accounts nor was a part of provisions of the Income Tax Act. Thus, there was no need to interfere with findings of CIT(A). Therefore, appeal of assessee was dismissed.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2018-19
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