Determination of turnover for presumptive taxation u/s 44AD - ...

Turnover calculation dispute under presumptive taxation resolved in taxpayer's favor.

Case Laws     Income Tax

November 9, 2024

Determination of turnover for presumptive taxation u/s 44AD - The assessee contended that receipts cannot be treated as ancillary receipts as the assessee had already offered income at 6% of the total turnover from eligible business as part of the business income, not on an item-wise basis. The CIT(A) considered the sale bills and ledger account and accepted the assessee's case regarding genuine turnover of Rs. 64,74,859/- and not Rs. 74,26,060/-. The ITAT held that Section 44AD is applicable to the assessee for the relevant AY 2018-19. The decisions relied upon by the CIT(A) dealt with Section 80IB, which is distinct from Section 44AD. The assessee offered to pay tax as per Section 44AD on the total turnover at 6%. The ITAT accepted the assessee's contention, set aside the CIT(A)'s order, and directed the AO to accept the new offer to tax as mentioned by the assessee. The assessee's appeal was allowed.

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