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2022 (9) TMI 1093 - AT - Income TaxTaxability at the rate prescribed u/s 115BBE - unexplained investment - Return u/s.44AD declaring income @8% on sales - assessee is engaged in business of sale and purchase of jewellery and filed return declaring income under presumptive scheme at 8% of the gross revenue - HELD THAT:- As seen that the assessee has been regularly engaged in the jewellery business. He has declared revenue of Rs.62.03 lakh for the year under consideration. It goes without saying that no business can be carried out without maintaining stock, more specifically if it is business of jewellery. Once the assessee has declared his income u/s.44AD and it is a no-account case, the AO cannot resort to the balance sheet filed by the assessee during the course of assessment proceedings to pick up the item of inventory of gold and make addition for the same. If that be the logic, then the AO will end up making addition for all the items of assets shown in the balance sheet, which is unfounded. We, therefore, order to delete the addition. Appeal is partly allowed.
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