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2020 (12) TMI 332 - AT - Income TaxUnexplained cash credits - Assessee depositing the cash to the savings bank account - assessee offered income u/s. 44AD of the Act which has been accepted by the AO - CIT(A) enhancing the assessment without giving mandatory notice u/s. 251(2) - HELD THAT:- The assessee’s turnover was ₹ 9,45,200/- and offered income of ₹ 4,84,158/-- u/s. 44AD of the I.T. Act. If the AO wants to make any addition, he shall ignore income returned by the assessee and proceed to scrutiny the accounts so as to make any addition. Therefore, in our opinion, this income offered us. 44AD of the Act is to be accepted. Now, there is no necessity of maintaining books of accounts and production of bills and vouchers Accordingly, we delete the addition made by the AO and confirmed by the CIT(A). Further, at this stage, it is observed that the CIT(A) is not justified in enhancing the assessment without giving mandatory notice u/s. 251(2) of the I.T. Act. This ground of appeal of the assessee is allowed.
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