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2019 (6) TMI 1365 - AT - Income TaxAddition u/s 68 - assessee opted to declare income u/s 44AD @ 8% - HELD THAT:- Section 44AD gives an option to the assessee to offer income on presumptive basis. These are special provisions. The assessee has opted for the same and offered to tax income at the rate of 8% of his turnover. The issue is whether, the AO can examine statement of accounts in such cases, make additions towards undisclosed purchases, undisclosed expenditure, under valuation of closing stock etc., The turnover declared by the assessee is accepted by the revenue. In my considered opinion such additions go against the spirit of the Act. Section 44AD was introduced to help the small traders who have difficulties in maintaining books of account and other records. Tax is levied on presumptive basis. Thus delete the addition in question. The case-law relied upon by the CIT(A) are not applicable to the facts of the case, as in that case what was held is that an addition u/s 68 could be made when income has been estimated. AO nor the CIT(A) have given any reason as to why the provisions of Section 44AD of the Act are not applicable to this case. Hence, we delete all the addition made in this case. The income returned, is directed to be accepted, by the Assessing Officer. - Appeal of the assessee is allowed.
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