9911796707
TMI Blog2024 (10) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... presumptive basis in case of an eligible assessee engaged in an eligible business a sum equal to 8% of the total turnover or gross receipts of the assessee or a sum higher than 8% shall be deemed to be profits and gains of such business. Admittedly, there was no dispute the business of the assessee falls under the category of an eligible business attracting provisions of section 44AD of the Act. We note that there was no evidence brought on record by the AO in the remand proceedings showing the sum is not arising from business and further, we find the AO has not disputed the business activity of the assessee. In the absence of any evidence contrary to the submissions of the assessee, we hold the assessee s business is an eligible business a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls in respect of cash deposits. The Assessing Officer proceeded to complete assessment proceedings in the absence of assessee and added entire cash credit of ₹. 26,90,210/- to the total income of the assessee vide his order dated 28.11.2018 under section 144 r.w.s. 147 of the Act. 5. As the assessee aggrieved by the order of the Assessing Officer, filed an appeal before the ld. CIT(A). It was contended that there was no sufficient time to make compliance with AO s notice. Further, it was submitted that the last opportunity to file objection was on or before 20.11.2018 and the assessment order was passed on 28.11.2019. Further, it was also brought to the notice of the ld. CIT(A) that the reasons for non-filing of return of income and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Tamilnadu Public Health Subordinate Services in August, 2009, relevant to the assessment year 2010-11, thereby, the assessee offered profit of business receipts as found in the way of cash deposits in the two bank account by applying 10% under section 44AD of the Act. The extent of addition confirmed by the ld. CIT(A) was also a part of business receipt prior to the appointment of assessee in Govt. Job. The Assessing Officer erred in saying that the assessee could not produce any evidence towards the addition confirmed by the ld. CIT(A). The ld. AR vehemently argued that the assessee was a contractor and all cash deposits found in the two bank accounts were business receipts arising out of contractual activities. The assessee has no o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to show copy of the labour bills to an extent of ₹. 20,23,250/- and for the remaining amount, he held that there is no evidence. Admittedly, the assessee was a contractor before his appointment and there is no dispute in this regard by the Revenue. The dispute is only with regard to non-submission of any evidence with regard to the extent of addition as confirmed by the ld. CIT(A). We note that the provision under section 44AD of the Act provides for computing profits and gains of business on presumptive basis in case of an eligible assessee engaged in an eligible business a sum equal to 8% of the total turnover or gross receipts of the assessee or a sum higher than 8% shall be deemed to be profits and gains of such business. Admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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