TMI Blog2023 (12) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... al provision for computing profits and gains of business on presumptive basis in the case of an eligible assessee engaged in an eligible business. So far as estimating of profits is concerned, we notice that in the income tax return filed by the assessee on ITR 3 even though it has taken the column no account case but in the Form complete details of the audit report u/s 44AB of the Act are mentioned wherein the assessee stated that it is covered u/s 44AB of the Act and books of accounts have been audited by a Chartered Accountant. The assessee also mentioned the details of the Chartered Accountant company along with date of audit report which is 29.10.2018 and the same stands duly uploaded on the income tax portal. These glaring fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n short AY ) 2018-19 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the Act ) by ld. Commissioner of Income-tax (Appeals)-NFAC, Delhi [in short ld. CIT(A) ] dated 12.01.2023 arising out of the assessment order framed u/s 143(3) read with Sections 143(3A) 143(3B) of the Act dated 13.03.2021. 2. The assessee is in appeal before this Tribunal raising the following grounds: 1. For that the Ld. CIT(A) was not justified in confirming the addition of Rs. 85,59,348/- made by the A.O. under the head Income from Business Profession by estimating the business profit at Rs. Rs. 1,14,28,598/-, being 8% of the total turnover of Rs. 14,28,57,480/-. 2. For that, without prejudice to above, the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at Rs. 1,14,28,600/-. 4. Aggrieved, the assessee preferred appeal before ld. CIT(A) and stated that books of accounts were duly audited u/s 44AB of the Act and presumptive taxation u/s 44AD of the Act applies only where the turnover is less than Rs. 2 Crore. However, ld. CIT(A) after observing the details about the major purchases of the assessee from a specified person, disregarded the audited statement of the assessee and confirmed the action of the AO. 5. Aggrieved, the assessee is now in appeal before this Tribunal. Ld. CIT(A) referring to the paperbook dated 18.03.2023 containing 98 pages and also referring to the copy of income tax return for AY 2018-19 which was placed before this Tribunal on 26.03.2023 submitted that the boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to special provision for computing profits and gains of business on presumptive basis in the case of an eligible assessee engaged in an eligible business. As per Explanation to Section 44AD of the Act eligible business consists of (i) any business except the business of plying, hiring or leasing goods carriages referred to in Section 44AE; and (ii) whose total turnover or gross receipts in the previous year does not exceed an amount of two crore rupees. Considering the fact that the turnover of the assessee is Rs. 14.29 Crore, the provisions of Section 44AD of the Act cannot be applied in the case of assessee. So far as estimating of profits is concerned, we notice that in the income tax return filed by the assessee on ITR 3 even though i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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