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TMI Blog2021 (1) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of section 44ADA of the Act (though it was inserted by finance Act 2016 w.e.f. 1/4/2017). In the peculiar circumstances in the case of the assessee 50% of the gross consultancy receipts should be treated as the expenditure incurred by the assessee for earning income from consultancy services. Accordingly, we hereby direct the Ld. AO to grant deduction of ₹ 17,65,696/- ( of ₹ 35,31,392/-) towards the expenditure incurred by the assessee towards earning income from providing consultancy services while computing the income of the assessee under the head income from profession and treat the balance amount of ₹ 40,42,376/- as income under the head salary . It is ordered accordingly. - ITA No. 2209/Hyd/2018 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id of ₹ 50,000/- aggregating to ₹ 13,47,509/-. 3. The brief facts of the case are that the assessee is an individual earning income from salary, consultancy services and interest filed his return of income on 30/07/2014 declaring total income of ₹ 47,69,660/-. Subsequently, the case was taken up for scrutiny and the assessment was completed by the Ld. AO by passing an ex-parte order U/s. 144 of the Act due to non-appearance, wherein he made additions towards the difference of salary income stated in Form 26AS and the salary income disclosed in the return of income amounting to ₹ 35,06,316/-, disallowance of deduction under Chapter VI-A ₹ 1,10,000/- and disallowance of interest on housing loan for ₹ 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O observed that in the Form 26AS salary income earned by the assessee was stated as ₹ 75,48,692/-. However, the assessee has disclosed his salary income in his return only ₹ 40,42,376/-. Therefore, the Ld. AO added the difference of the salary income disclosed in his return and form 26AS amounting to ₹ 35,06,316/- as the undisclosed income of the assessee. Before the Ld. CIT (A) the assessee has clarified that he had received ₹ 40,18,200/- as salary from his employer M/s. Google India Pvt. Ltd., Bangalore and the remaining amount of ₹ 35,31,392/- was received from his profession as consultancy services provider as he had quit the job. The assessee also furnished the details of the expenditure incurred for earni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee for earning income from consultancy services. Accordingly, we hereby direct the Ld. AO to grant deduction of ₹ 17,65,696/- ( of ₹ 35,31,392/-) towards the expenditure incurred by the assessee towards earning income from providing consultancy services while computing the income of the assessee under the head income from profession and treat the balance amount of ₹ 40,42,376/- as income under the head salary . It is ordered accordingly. 6. Before parting, it is worthwhile to mention that this order is pronounced after 90 days of hearing the appeal, which is though against the usual norms, we find it appropriate, taking into consideration of the extraordinary situation in the light of the lock-down due to Covid-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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