9911796707
TMI Blog2025 (4) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is a Contractor/Builder with Material contract/Labour contract. Return of income for the A.Y. 2018-19 was furnished on Assessee by : Shri Kishor B. Phadke Revenue by : Shri Vinod Pawar Date of hearing : 24.12.2024 Date of pronouncement : 07.01.2025 29.08.2018 which was subsequently revised declaring total income of Rs. 2,98,410/-. After the case selected for Complete Scrutiny for verification of large commission expenses and low net profit, following by issuance of statutory notices u/s.143(2)/142(1), the assessee submitted partial details. From the ITR details, the Assessing officer observed from the profit and loss account that the assessee has debited Rs. 21,28,710/- as commission expenses. However, in response to notice u/s.14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ledger account of Construction Expenses is filed which mainly includes the amount incurred towards purchase of Bricks, Sand, and payment of labour. It is also claimed before me that the assessee fall under the Presumptive Taxation Scheme u/s.44AD of the Act and the income is estimated @8% of the gross receipts which comes to Rs. 2,41,008/-, however, the assessee has shown higher amount of Rs. 2,98,412/-. It is also claimed that unintentional mistake made by the person filing the income-tax return mentioned the word 'Commission' in place of 'Construction'' and the same should not be taken against the assessee. It is submitted that the assessee in response to notice u/s.142(1) submitted his explanation vide submission dated 30.01.2021, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and insisted on substaitating the 'Commission Expenses" of Rs. 21,78,710. 8. I reiterate that, in my activity of Material / Labour contractor, expenses of Rs. 21,78,710 were indeed incurred on 'Construction expenses' and not any 'Commission expenses'. It is my respectful submission that the error in filing the tax return deserves to be considered sympathetically." 7. From going through the affidavit as well as the details filed in the paper book which remains uncontroverted by the Departmental authorities at any stage, I find merit in the contentions made by ld. Counsel for the assessee and hold that the assessee has actually incurred 'Construction Expenses' at Rs. 21,28,710/- but due to inadvertent mistake committe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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