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TMI Blog2010 (6) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer, holding that the cash credits were out of business receipts falling u/s 44AD when at no stage the assessee had filed any evidence to show the nature of business and the details of parties from whom so called contract receipts were received and also ignoring the fact of non-deduction of tax on these so called contract receipts." 2. The assessee filed its return of income on 16.11.2005 declaring an income of Rs.1,40,120/-. The said return had been filed showing the business income of Rs.1,60,120/- under Section 44AD of the Act. The Assessing Officer did not accept the return and made an addition of Rs.14,95,300/- in respect of the cash deposited in the bank account during the year. On appeal, the Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- i.e. 8% of the gross receipts of Rs.20 lacs. The total cash credits in the bank statement are lower than the business receipts shown by the assessee. 12. The non-compliance made by the assessee appears to be on account of his nature of work and having no fixed place of business. He remains on tour, etc. In fact, the notices sent by this office could also not be served on the assessee as he was not available. I am in agreement with the contention of the assessee that it is no account case and the return was filed u/s 44AD. The assessee is not required to maintain regular books of account if the turnover is below Rs.40 lacs and the assessee files return u/s 44AD. In view of these facts, the addition made by the assessing officer is delet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not exceed Rs.40 lacs. 8. Once under the special provision, exemption from maintaining of books of account has been provided and presumptive tax @ 8% of the gross receipt itself is the basis for determining the taxable income, the assessee was not under obligation to explain individual entry of cash deposit in the bank unless such entry had no nexus with the gross receipts. The stand of the assessee before Commissioner of Income-tax (Appeal) and the ITAT that the said amount of Rs.14,95,300/- was on account of business receipts had been accepted. Learned counsel for the appellant with reference to any material on record, could not show that the cash deposits amounting to Rs.14,95,300/- were unexplained or undisclosed income of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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