9911796707
TMI Blog2023 (11) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Commissioner of Income Tax, NFAC, under section 250 of the Act in so far as it is against the Appellant is opposed to law, weight of evidence, probabilities, facts and circumstances of the Appellant's case. 2. The appellant denies himself to be assessed at Rs. 3,13,27,530/- as against the returned income of Rs. 22,59,870/- for the assessment year 2018-19 on the facts and circumstances of the case. 3. Grounds on merits of the matter: a. That the authorities below have failed to appreciate that the income from contract business has been estimated under the head 'income from other sources' as the appellant has not maintained any books of accounts on the facts and circumstances of the case. b. That the authorities b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest under section 234A, 234B and 234C of the Act in view of the fact that there is no liability to additional tax as determined by the learned assessing officer. Without prejudice the rate, period and on what quantum the interest has been levied are not in accordance with law and further are not discernible from the order and hence deserves to be cancelled on the facts and circumstances of the case. 6. The appellant craves to add, alter, amend, substitute, change and delete any of the grounds of appeal. 7. For the above and other grounds that may be urged at the time of hearing of the appeal, the Appellant prays that the appeal may be allowed and justice rendered and the appellant shall be awarded cost in prosecuting the appeal and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to expenses/deductions claimed of Rs. 2,90,67,660. However, the assessee did not respond till the date of assessment. 4. The AO noted that the assessee has received payment of Rs. 4,19,15,171 as reported by Mysore City Corporation in Form 26AS and assessee has split its business income in two parts i.e. Rs. 1,09,92,126 as income u/s. 44AD and rest of the amount of Rs. 3,09,23,045 as income from other sources and claimed expenditure of Rs. 2,90,67,660 u/s. 57. However, the assessee could not produce any document for justifying the claim u/s. 57. Accordingly, the AO disallowed the entire expenditure as claimed by the assessee u/s. 57 of Rs. 2,90,67,660. 5. Aggrieved from the above order, the assessee filed detailed written submissions b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fair, objective and rationale while framing scrutiny assessment and has instructed not make high pitched assessment without proper application of mind by the AO. 7. During the hearing, the ld. AR also accepted that the assessee should have offered income under the head Profits & gains of business or profession and the assessee has not maintained books of accounts and also not received audit report from the CA within the specified date. He also submitted that in the previous AYs 2016-17 & 2017-18, the assessee has offered income @ 8% Net Profit and filed return u/s. 44AD. He further submitted that the AO has accepted business income offered by the assessee @ 6% on the turnover of Rs. 1,09,92,126 and for the rest of turnover of Rs. 3,09,23, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t business income of Rs. 4,19,15,171 into Rs. 1,09,92,126 and Rs. 3,09,23,045, which shows that the AO has accepted that it is business income of the assessee. There is no doubt that the amount received by the assessee from Mysore City Corporation should be considered under Chapter IV - Part D - Profits & gains of business or profession. We further note that on the amount of Rs. 1,09,92,126, the assessee has offered it as business income during the impugned assessment year declaring profit @ 6% u/s 44AD to which the AO has accepted. Therefore, the rest of the amount of Rs. 3,09,23,045 should have also been considered by the AO under Chapter IV - Part D - Profits & gains of business or profession. During the hearing, the ld. AR fairly offere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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