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2022 (4) TMI 851 - AT - Income TaxComputation of income in a presumptive basis u/s.44AD - addition of trade creditors - Whether no addition u/s.28 to 43C can be made when the Assessee has filed return of income u/s.44AD? - HELD THAT:- Admittedly, the Assessee’s trading turnover is to the extent of ₹ 60,87,980/-. Assessee has declared profit on the same at ₹ 4,98,560/-, i.e. net profit and had paid taxes on the same. Assessee has fulfilled all the conditions provided u/s.44AD as the Assessee has got his accounts audited and that the Assessee is in retail trade. Further, the Assessee has not claimed any deduction. Assessee, being an individual, is eligible for claim on presumptive taxation u/s.44AD of the Act. Assessing Officer has gone into the sundry creditors which are appearing in his accounts but there is no such condition provided in the provisions of Section 44AD of the Act and the CIT(A) has rightly held that, even the provisions of Section 41(1) of the Act does not apply, as there is no cessation of liability. In view of the above, we confirm the order of the CIT(A) on this issue. Assessee has also interest income received from fixed deposits made in the Bank for ₹ 2,09,084/- and this cannot be covered under presumptive taxation. Revenue has pointed out from the Assessee’s accounts that it has made fixed deposits at Electricity Department, Bank of Baroda, Federal Bank, Syndicate Bank, Rent deposit and Sales Tax Deposits. According to the Revenue, this interest income is earned by the Assessee on fixed deposits made with the Banks. According to us, this is income from other sources and it has to be assessed separately. Hence, we direct the Assessing Officer to add this income apart from the income declared by the Assessee u/s.44AD of the Act and re-compute the income accordingly. This appeal of the Revenue is partly allowed
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