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2022 (5) TMI 1412 - HC - Income TaxUnaccounted credit in the savings bank account - unexplained investment u/s 69 - According to the appellant, the said sum is to be taxed at 8% as per section 44AD as the same is her business receipts - HELD THAT:- There is no dispute with regard to the legal position that Section 44AD was inserted by Finance Act, 1994 with effect from 01.04.1994. 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 the previous year on account of such business or a sum higher than the aforesaid sum as may be declared by the assessee in his return of income notwithstanding anything to the contrary contained in Sections 28 to 43C - This income is to be deemed to be the profits and gains of the said business chargeable of tax under the head “profits and gains” of business. The said provisions are applicable where the gross receipts paid or payable does not exceed Rs.40 lakhs. As evident from the records that the appellant did not prove her nature of business and the source of credit of Rs.25,00,000/-; and she put forth different stand before the authorities below. Though the learned counsel for the appellant raised a plea that the appellant was represented by an Income Tax Practitioner, who did not properly represent the case before the respondent and failed to give the details with regard to the credit in her savings bank account and explain the sources of credit of Rs.25,00,000/- in a proper manner, this court is not inclined to accept the same, in view of the categorical finding rendered by the appellate authorities, while dismissing the appeals filed by the appellant, to the effect that the appellant failed to co-relate the source of cash deposits. No substantial question of law.
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