Presumptive Taxation under Section 44AD Shields Business Receipts from Separate Additions

Pragjibhai Parshotambhai Patel Vs ITO (ITAT Surat) The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2014-15 and deleted all additions made by the Assessing Officer. The Tribunal held that the addition of ₹10 lakh on account of alleged difference in opening cash balance was unsustainable, as the assessee had plausibly explained the difference as arising from a clerical error in the preceding year’s return and the Revenue failed to bring any material to establish unexplained income. Since the assessee was declaring income under section 44AD and not maintaining regular books...