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2016 (3) TMI 1189 - AT - Income TaxAddition of expenditure as bogus - mandatory provisions of Section 44AD/44AF read with Rule 6DD (e)(i) ignored - Held that:- The orders of the A.O and CIT(A) cannot be sustained as such. It is obvious that Assessee has used a wrong form and also reflected the income from business under the head ‘other sources’. It is the duty of the A.O to advice the Assessee when certain procedural / technical mistakes were committed by Assessee. The A.O should not take advantage of mistakes committed by the Assessee, while discharging statutory duties. Assessee’s entire turnover, as accepted by the A.O, was only ₹ 16,58,500/- and provisions of 44AD of the IT Act would automatically apply. Since Assessee has declared more income than required under provisions, A.O should have accepted the same. The benefits provided to small time Assessees / small business persons cannot be denied by A.O. The order of the Ld. CIT(A) also was without considering the grounds raised before him. In view of that, in the interest of justice, I set aside the orders of the A.O and CIT(A) and restore the assessment to the file of A.O to be redone, after giving due opportunity to Assessee. A.O can advise Assessee to file a proper form of return if required, before completing the assessment. - Decided in favour of assessee for statistical purposes.
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