Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 806 - AT - Income TaxReopening of assessment - loss claimed on the gross receipts - assessee has maintained books of accounts are required u/s 44AA(2) but had not got the accounts audited as required u/s 44AB - Held that:- In the present case, since initiation of reassessment proceedings is beyond 4 years from the assessment year, therefore unless and until it is observed and found that the income has escaped assessment due to the failure on the part of the assessee to disclose truly and fully all material facts for the assessment, the AO is not authorized to make reassessment. In the present case, it is a fact that assessee has claimed loss of ₹ 1,33,970/- on the gross receipts of ₹ 5,54,103/- from construction activities. As per the provisions of s. 44AD of the Act, an Assessee can claim lower profits and gains (i.e less than 8% of the gross receipts) only if he keeps and maintains such books of accounts and other documents as required u/s 44AA(2) of the Act and gets his accounts audited and furnishes a report of such audit as required under s. 44AB of the Act. In the present case, though the assessee has maintained books of accounts are required u/s 44AA(2) but had not got the accounts audited as required u/s 44AB of the Act, which according to us was a failure on the part of the assessee to comply with the requirement of section 44AD of the Act and thereby claim loss. In such a situation, we are of the view that no interference to the order of the ld.CIT(A) in confirming the action of reopening the assessment on the part of AO is called for. Further, the decision relied upon by assessee are on different facts and are therefore not applicable to the present case. - Decided against assessee.
|