Shri Kokkarne Prabhakara Vs. ITO (ITAT Bangalore)
Asking the assessee to prove to the satisfaction of the Assessing Officer, the expenditure to the extent of 92% of gross receipts, would also defeat the purpose of presumptive taxation as provided under section 44AD of the Act or other such provision. Since the scheme of presumptive taxation has been formed in order to avoid the long drawn process of assessment in cases of small traders or in cases of those businesses where the incomes are almost of static quantum of all the businesses, the Assessing Officer could have made the addition under section 69A of the Act, once he had carved out the case out of the glitches of the provisions of section 44AD of the Act. No such exercise has been done by the Assessing Officer in this case.
I am of the opinion that once the assessment of the assessee was completed u/s. 44AD, there cannot be any application of sec. 68/69A of the I.T. Act. Being so, I direct the AO to delete the addition made by the AO and confirmed by the CIT(A) at Rs.3 lakhs.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order of the CIT(A) dated 14/03/2019.
1.1 There was a delay of 3 days in filing the appeal before the Tribunal. The assessee filed condonation petition stating that the assessee sent the appeal papers through VRL courier on 24/05/2019. Further, the bus which was carrying the appeal papers met with an accident and it was delivered only on 28/05/2019 which resulted in delay of three days.
1.2 I have gone through the condonation petition. I find that there is good and sufficient cause for filing the appeal belatedly. Accordingly, I condone the delay of three days and admit the appeal for adjudication.
2. The assessee has raised the following grounds:
