2024 (5) TMI 764

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..... Once the nature of business of the assessee was accepted to be one arising out of income from commission then there was no question to dispute the declaration of profit u/s 44AD by questioning the quantum of receipts and corresponding expenditures. Doing so, the very purpose of section 44AD of the Act gets defeated. Learned CIT(A) thus erred in sustaining the addition. Appeal of the assessee is al .....

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..... ion that there were repeated cash deposits and credit entries in the bank account of the assessee. As per the information there were deposits of Rs. 22,50,000/- and Rs. 52,76,000/- in the two bank accounts of the assessee. The Assessing Officer noted that the assessee had not filed return of income. The Assessing Officer accordingly recorded reasons and issued notice u/s 148. The assessee filed th .....

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..... and purchase of property. Assessee is an expert in arranging land for prospective buyers as they are advancing money at various point of time for arranging lands for them and getting the land registered in their name whenever any good deal comes into his knowledge. As with regard to the deposit of Rs. 75,26,000/- in ICICI Bank accounts, the assessee claimed Rs. 44,00,000/- was from withdrawals of .....

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..... ceipts of Rs. 24,55,871/- claimed to be from the business of the appellant which were deposited in the bank accounts, only Rs. 4.5 lacs was withdrawn from the bank for meeting | office expenses and paying salary to the staff. In these circumstances, the appellant was not justified in declaring profit of Rs. 1,96,470/- against this | income u/s 44AD of the I.T. Act. As pointed out by the Assessing .....

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..... e of business of the assessee was accepted to be one arising out of income from commission then there was no question to dispute the declaration of profit u/s 44AD by questioning the quantum of receipts and corresponding expenditures. Doing so, the very purpose of section 44AD of the Act gets defeated. Learned CIT(A) thus erred in sustaining the addition. Grounds are allowed. Appeal of the assesse .....

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