Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 281 - AT - Income TaxTax audit u/s 44AB - inclusion of advances in the turnover to calculate the prescribe limit for audit - held that:- no equation between advances and turnover/receipts - The mischief of section 44AB shall only become operative if the “turnover or business receipts” exceed Rs. 40,00,000/-. The section does not mention anything with regard to advances received from its customers and that too conditional - CIT(A) had correctly interpreted the provisions of section 44AB and also reversed the decision of the AO for rejecting the books of accounts of the assessee, solely on the ground that the books had not been audited by the C.A. - Decided in favor of assessee. Addition on account of estimation of income at 10% on the advances received - alleged that assessee is following project-completion method – Held that:- There was no work done during the year and no amount was received towards flats. What was received from prospective buyers was only in the nature of loans, a good portion of which was repaid between 1985 and 1986 and therefore, could not be considered as amounts received towards price of the flats intended to be sold - AO was wrong to treat the advances received as sales - AO was wrong to add back adhoc “notional income” @ 10% of the advances and deleted the same - Decided in favor of assessee.
|