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2017 (2) TMI 1532 - AT - Income TaxAddition on account of purchases made in contravention of provisions of Section 40A(3) - assessee had purchased in cash gold and silver - assessee has filed his return u/s 44AF - HELD THAT:- From perusal of records, it transpires that the issue under consideration has already been decided by the Coordinate Bench of the ITAT in assessee’s own case [2016 (4) TMI 1440 - ITAT JAIPUR],[2016 (10) TMI 1373 - ITAT JAIPUR] for the assessment years 2006-07 and 2007-08 wherein respectfully following the decision of ITAT Ahemdabad Bench in the case of Gopalsingh R Rajpurohit [2004 (7) TMI 271 - ITAT AHMEDABAD] hold that once the assessee has filed his return u/s 44AF, no further disallowance can be made u/s 40A(3). It is noteworthy that in this case no trading irregularity was found and addition has been sustained only on technical issue of Section 40A(3) of the Act. The presumptive system of tax u/s 44AF starts with nonobstante clause and overrides other provisions. In view thereof, there is no justification in making the addition which is deleted. Since the addition is deleted on merits, there is no need to go into alternative ground. Thus the appeal of the assessee is allowed.
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