Neeraj Dewangan Vs ITO (ITAT Raipur)
The Income Tax Appellate Tribunal (ITAT), Raipur, dismissed the assessee’s appeal against the order of the CIT(Appeals)/NFAC dated 19.03.2026 for Assessment Year 2024-25, upholding the application of the presumptive taxation provisions under Sections 44AA and 44ADA of the Income Tax Act. The assessee had filed the return under Section 139(1) by declaring presumptive income under Section 44AD and reported total income of ₹6,92,100. The assessee operated a proprietorship concern, M/s Geophoenix, engaged in execution-based and support services, including liaison and facilitation for obtaining statutory NOCs from Government Departments and coordinate marking as per clients’ instructions.
The case was selected for scrutiny under CASS on the ground that substantial receipts were subjected to TDS under Section 194J while income had been declared under Section 44AD instead of Section 44ADA. During assessment, the Assessing Officer issued notices under Sections 143(2), 142(1), and 133(6) to the assessee and certain clients. The clients confirmed deduction of tax at source under Section 194J on receipts aggregating to ₹37,80,000. The Assessing Officer treated the receipts as professional income covered by Section 44ADA and made an addition of ₹14,17,500.
Before the CIT(A), the assessee contended that deduction of TDS under Section 194J by clients was beyond his control and could not determine the nature of income. The CIT(A) observed that the assessee had not produced any corrected Form 26AS or other corroborative evidence to support the claim that Section 44AD remained applicable. Accordingly, the addition made by the Assessing Officer was confirmed and the appeal was dismissed.
