Presumptive taxation under Section 44AD doesn’t bar Section 68 additions

Hemant M. Shah HUF Vs ITO (ITAT Mumbai) In a significant ruling for taxpayers opting for presumptive taxation schemes, the Income Tax Appellate Tribunal (ITAT) Mumbai bench has held that choosing the presumptive taxation scheme under Section 44AD of the Income Tax Act does not grant immunity from additions made under Section 68 for unexplained cash credits, particularly in cases of suspicious transactions. The decision came in the appeal of Hemant M. Shah HUF versus the Income Tax Officer (ITO), where the assessee challenged an addition of Rs. 53,09,550/- related to alleged fictitious purchase...