TMI Blog2023 (11) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... bjected that assessee has wrongly field return of income and split its turnover in two parts - assessee has offered Income from Other sources showing gross receipt and claimed expenditure u/s. 57, for which the assessee was unable to produce any documentary evidence HELD THAT:- Assessee is a contractor and has received payment from Mysore City Corporation for which the contractee has deducted TDS u/s. 194C. In the assessment order the AO has noted that assessee has split business income 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 pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. 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 below have failed to appreciate that though the provisions of section 44AD of the Act is not applicable in the given case, reference can be drawn from the rate specified under the provisions of section 44AD in o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 also order for the refund of institution fees as part of the cost. 2. The brief facts of the case are that the assessee filed return of income on 31.12.2018 declaring income of Rs. 22,59,870. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 before the CIT(Appeals) which has been incorporated in his order and he dismissed the appeal of the assessee. Accordingly, the assessee is in appeal before the Tribunal. 6. The ld. AR reiterate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 3,09,23,045, he fairly submitted that Net Profit @ 8.5% may be adopted in the absence of books of account and audit report. 8. The ld. AR placed reliance on the following decisions:- i. Deluxe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 offered 8.5% Net Profit rate looking to the past trend of the assessee which is fair enough as profit of the business of the assessee shown under the head Income from Other Sources and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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