9911796707
TMI Blog2012 (7) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... e details filed by assessee AO observed that no TDS has been recovered but as the assessee has disclosed the profits more than 8% of the gross receipts and there is no dispute in receipt of the gross receipts the addition made u/s 40(a)(ia) is not sustainable - decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ought into the picture. It is not acceptable that the firm does not maintain any books of accounts when the A/r had famished lots of information at. the time of filing return as well as at the time of scrutiny proceedings. Ii. is only to avoid the liability of deducting lax at source that the aspect of section 44AD has been brought into picture. So, keeping in view the discussion above and the facts and circumstances of the case, the contention of the A/r is not tenable, hence rejected. Now, let us come to the findings in the case. The assessee firm had made certain payments to the following parties during the entire financial year against which tax was required to be deducted at source: Name Amount Nature of Business 1. M/s,Aashirbad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Now the important question is whether the gross receipt paid or payable to the assssee in the previous year on account of such business is Rs.40,00,000/- or less or not. It is seen that the work-in-progress of Rs. 65,45,500/- has been shown by the assessee for the residential flats which are being constructed by it but which were not complete by the end of the previous year under consideration. The assessee has claimed that the construction of these flats was completed in the next financial year and thereafter only the possession was handed over to the buyers. Thus it can be accepted that the partly constructed flats were work-in-progress for the assessee and the money received from the buyers for these flats was an advance and not a rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 8% of the gross receipt of the assessee all the deductions to be allowed or disallowed as provided in section 28 to section 43C are considered to have been taken into consideration. If the assessee has shown more than this 8% in its return then that higher value is to be adopted. In the facts of the above case the 8% of gross receipts comes to Rs. 1,57,689/- and the profit declared by the assessee is Rs. 1,64,814/-. Therefore, the profit of Rs. 1,64,814/- declared by the assessee is to be adopted u/s 44AD and there will not be any scope for making addition u/s 40(a)(ia). The argument of the A.O. that the assessee has got its account audited and has prepared proper P & L A/c and Balance Sheet therefore, its case will not be covered u/s 44 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 44AD of the Act the law does not require to maintain books of accounts u/s 44AA of the Act and audit its accounts u/s 44AB of the Act. However, if the assessee has done so it cannot be held against the assessee. Similarly, if the assessee has mentioned certain details about his financial transactions in the return of income on the basis of the books of accounts which cannot be used as an evidence against the assessee. Therefore he requested to upheld the action of ld. CIT(A). 6. After hearing the rival submissions and on careful perusal of materials available on record, it is observed that the observations made by ld. CIT(A) in the impugned order which are incorporated in the preceding paragraphs, in our opinion, is in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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