Assessment Set Aside as AO Incorrectly Applied Section 44AD to Transport Income

Kulandaivel Thaalamuthu Vs ACIT (ITAT Chennai) The appeal concerns the assessment year 2016-17 and challenges an order dated 23 October 2024 of the Commissioner of Income Tax (Appeals), NFAC, confirming the rejection of a rectification application under Section 154 of the Income Tax Act. The assessee, engaged in the transportation business under the name “Sri Ram Transport,” filed his return on 7 March 2017 declaring income of ₹3,50,610, computed presumptively under Section 44AE. The case was selected for limited scrutiny to verify whether contract receipts were correctly offered. During...