TMI Blog2008 (4) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... ttedly, gross receipts were above 40 lacs – tribunal could not have assumed the estimated profit at 8% - tribunal directing AO to restrict addition by estimating net profits at 8 % of unaccounted receipts is not proper - 1164 of 2006 - - - Dated:- 25-4-2008 - MADAN B. LOKUR and MANMOHAN SINGH JJ. R.D. Jolly for the appellant. Salil Kapoor for the respondent. JUDGMENT The judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter being looked into by the Assessing Officer, he was of the view that the Assessee was required to account for receipts to the extent of Rs. 62,39,536/-. The Assessee was able to give an explanation with regard to a part of the amount and accepting that explanation, the Assessing Officer added an amount of Rs. 42,45,036/- out of the receipts of Rs.62,39,536/-. 4. Against the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at 8% and directed the Assessing Officer to levy tax accordingly. 7. Learned counsel for the Revenue has pointed out that the provisions of Section 44AD(1) of the Act would not apply if the gross receipts are over Rs. 40 lakhs. 8. Section 44AD (1) of the Act, along with the proviso, reads as under :- "44AD(1). Notwithstanding anything to the contrary contained in Section 28 constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We find that Section 44AD(1) of the Act does not deal with undisclosed receipts but deals with gross receipts. Therefore, we cannot accept the contention of learned counsel for the Assessee. 11. Since the provisions of Section 44AD(1) of the Act do not apply, the Tribunal could not have assumed the estimated profit at 8% which it has done as per Section 44AD(1) of the Act. In fact, by estim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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