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TMI Blog2019 (10) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6,34,212/-: The Id. CIT(A) further erred in law as well as on the facts of the case in confirming the addition made by the AO by applying estimated NP rate @8% on the declared sales, as against the declared NP rate 3.40% only. The resultant addition of Rs. 6,34,212/- made by the AO and confirmed by the Id. CIT(A), being contrary to the provision of law and facts, kindly be deleted in full. 3. Rs. 1,59,500/-: The Id. CIT(A) further erred in law as well as on the facts of the case in confirming the addition made by the AO of Rs. 1,59,500/-as "income from other sources" ignoring the contention that the it was typographical mistake only committed while filing the original return of income showing wrong agricultural income. The authorities b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was carrying on liquor and truck hiring business. During the year under consideration, he filed his return of income of 12/07/2013 declaring income from truck hiring business and agricultural income but no income was declared from liquor business. During the assessment year, the assessee filed revised return of income on 30/08/2015 declaring total income of Rs. 6,38,900/- which includes income from liquor business of Rs. 4,68,895/-. Since the assessee has not produced books of account for verification, therefore, the A.O. invoked provisions of Section 145(3) of the Income Tax Act, 1961 (in short, the Act) and rejected the so-called book results. Even otherwise when the assessee has not declared any income in the original return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Mewara and submitted that the addition made by the A.O. may be deleted. 5. On the other hand, the ld. DR has submitted that the assessee is not maintaining any books of account and despite show cause notices issued by the A.O., the assessee failed to produce books of account in respect of liquor business. The A.O. has estimated the income by adopting N.P. rate at 8% as it is provided U/s 44AD of the Act which is a modified provision for estimation of income. He has relied upon the orders of the authorities below. 6. I have considered the rival submissions as well as relevant material on record. There is no dispute that the assessee has neither declared any income from liquor business in the original return of income filed on 12/07/2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly, estimation of income from the liquor business is restricted to 6%. 7. Ground No. 3 of the appeal is regarding addition on account of agricultural income treated as income from other sources. In the original return of income, the assessee has declared agricultural income of Rs. 2,50,000/-. In the revised return of income, which was filed belatedly and treated as nonest by the A.O., the assessee declared agricultural income of Rs. 90,500/-. The A.O. treated the differential amount of Rs. 1,59,500/- as income from other sources. 8. Before the Tribunal, the AR of the assessee has submitted that when the assessee has reduced its agricultural income from Rs. 2,50,000/- to Rs. 90,500/-, it cannot be a ground for making addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the same was treated as nonest. Further, even if, a wrong income is offered to tax, the same can be rectified, however, it is not a case of wrong income offered to tax but the assessee claimed agricultural income which is exempt from tax at Rs. 2,50,000/- and subsequently come out with the plea that the actual agricultural income is only Rs. 90,500/-. Thus, the assessee was not able to substantiate the claim of agricultural income of Rs. 2,50,000/- declared in the original return of income. Once the assessment is framed based only on original return of income then the excess claim of agricultural income in the original return of income is a subject matter of scrutiny and enquiry. The assessee himself has admitted that actual agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said provision of Section 44AE of the Act, the presumptive income comes to Rs. 2,70,000/- thus, he has submitted that the assessee has rightly offered the income in the revised return at Rs. 2,70,000/-. 13. On the other hand, the ld DR has submitted that the assessee has not filed any record or books of account in support of the claim even the registration certificate regarding the number of vehicles owned by the assessee was not produced before the A.O., therefore, the A.O. after considering the receipts deposited in the bank account from the truck hiring business, has estimated the income at Rs. 3,50,000/- which is fair and reasonable. He has relied on the orders of the authorities below. 14. I have considered the rival submissions as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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