Pradeep Modi Vs ITO (ITAT Kolkata)
ITAT Kolkata held that duty drawback is part of gross receipts for the purpose of calculation of ‘gross receipts’ under the presumptive taxation as per section 44AD of the Income Tax Act. Thus, appeal allowed.
Facts- The assessee is engaged in export business of leather goods, filed its return of income for the AY 2018-19 showing net taxable income of Rs. 5,25,250/-. The further case of the assessee is that the appellant assessee during the said year made export sales of Rs. 64,74,859/- and declared profit @ 6% on presumptive basis as per the deeming provisions of Section 44AD of the Act. AO while computing the total taxable income added the amount of Rs. 57,071/- to the presumptive business income @ 6% of Rs. 9,51,201/- being difference in turnover as the AO found that there was a turnover of Rs. 74,26,060/- instead of Rs. 64,74,859/-. AO has further added an amount of Rs. 25,37,352/- i.e. Rs. 20,26,817/- on account of sale of license and Rs. 5,10,535/- against duty drawback receipts during the year and further added Rs. 6,36,509/- under the head ‘income from other sources’.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
