TMI Blog2010 (6) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deemed to be the profits and gains of said business chargeable of tax under the head "profits and gains" of business. However, the said provisions are applicable where the gross receipts paid or payable does not exceed ₹ 40 lacs. - Held that: - Once under the special provision, exemption from maintaining of books of account has been provided and presumptive tax @ 8% of the gross receipt itself is the basis for determining the taxable income, the assessee was not under obligation to explain individual entry of cash deposit in the bank unless such entry had no nexus with the gross receipts - ITA No. 156 of 2010 - - - Dated:- 29-6-2010 - Adarsh Kumar Goel and Ajay Kumar Mittal, JJ Urvashi Dugga, Adv. for the Appellant A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted, the addition made by the Assessing Officer was not justified. It was also recorded that since the cash deposits in the bank statement were lower than the business receipts shown by the assessee and in the bank statement there were withdrawals as well as deposits, the addition was unjustified. The relevant observations of the Commissioner of Income-tax (Appeals) are as under:- "11. I have carefully considered the rival submissions. The main issue is in regard to the addition of Rs.14,95,300/- on account of the cash deposits. In appeal, the ld counsel filed the written submissions and it was explained that the assessee could not furnish a reply to the notices issued by the assessing officer as he remains on tour. It was stressed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the cash deposit in bank account of the respondent-assessee, the total deposits made during the year amounting to Rs.14,95,300/- had been made in the said bank account, the assessee having failed to explain the source of the said amount, the addition made by the Assessing Officers was justified. 6. We have considered the submission of learned counsel for the appellant and do not find any merit in the same. 7. Section 44AD of the Act was inserted by Finance Act, 1994 w.e.f. 1.4.1994. Sub-section (1) of Section 44AD clearly provides that where an assessee is engaged in the business of civil construction or supply of labour for civil construction, income shall be estimated at 8% of the gross receipts paid or payable to the assessee in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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