2003 (4) TMI 217

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..... f Rs. 1,24,770 on reasonable ground while the ITO of Ward-4, Gwalior, assessed the abovementioned total income by imposition of the provisions under ss. 44AD and 44AE of the Act for single source of business. (ii) The CIT(A) was not justified in upholding the additions made in total income by the ITO but rejected the clause of said additions, i.e., s. 44AD. (iii) The CIT(A) was wrong in accept .....

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..... counsel further submitted that the income from so called contract could not be estimated @ 8 per cent because the assessee was not a civil contractor. He, therefore, submitted that the income of Rs. 44,000 shown by the assessee from that work should have been accepted. 4. The learned Departmental Representative, on the other hand, supported the order of CIT(A). 5. I have considered the rival .....

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..... f the Act. 8. On appeal by the assessee, the CIT(A) upheld the order of AO on the ground that technically s. 44AD may not be applicable but 8 per cent profit was not an unreasonable profit. 9. I have considered the rival submissions and the facts and circumstances of the case. 10. After careful consideration of the totality of the facts and circumstances of the case I am of the opinion that .....

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..... e declared the income by following the second method because admittedly, he had not maintained the books of accounts. Under these circumstances, the method adopted by the assessee could not be rejected straightway. The only aspect to be seen was the reasonableness of profit of transportation contract. 12. So far as the assessee's case is concerned, he himself has declared income from transport c .....

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..... labour, the provisions of s. 44AD were not applicable. 13. In view of above facts and circumstances, I am of the opinion that the income declared by the assessee was quite reasonable and there was no necessity of making any further addition. Order of CIT(A) is, therefore, set aside and AO is directed to accept the returned income. 14. In the result, assessee's appeal is allowed.
Case laws, .....

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