Section 44AD Applies to Retail Business; Gross Deposits Taxable at 8% as Net Profit

Santosh Kumar Vs ITO (ITAT Jaipur) ITAT Jaipur ruled on the applicability of Section 44AD of the Income Tax Act in assessing the taxable income of Santosh Kumar, a retail trader in Kota stones. The case arose after the assessee failed to file a return for the 2011-12 assessment year despite depositing Rs. 25.56 lakh in cash at ICICI Bank. The Assessing Officer (AO) treated the amount as income from undisclosed sources under Section 144. The assessee’s appeal was dismissed by the Commissioner of Income Tax (Appeals) [CIT(A)], who also rejected additional evidence under Rule 46A, citing non-co...