Entire Bank Credit is Business Receipts for Section 44AD Income Estimation: ITAT Chennai

Rahimathulla Abdul Rahman Vs ITO (ITAT Chennai) In the case of Rahimathulla Abdul Rahman vs ITO, the Income Tax Appellate Tribunal (ITAT) Chennai addressed the treatment of bank credits for income estimation under Section 44AD of the Income Tax Act. The case arose from a best judgment assessment for AY 2017-18, where the Assessing Officer (AO) estimated business income at 8% on Rs.119.80 lakh, the bank turnover, and added Rs.10.18 lakh as unexplained cash deposits during the demonetization period. While the Commissioner of Income Tax (Appeals) granted partial relief by excluding Rs.2.5 lakh fr...