Topic
ITAT Jaipur set aside an unexplained money addition of Rs.10,90,100 u/s 69A after finding assessee's cash withdrawals sufficient to cover credit card payments. The ruling clarifies that correlated withdrawals can rebut Section 69A additions, impacting taxpayers facing similar assessments.
The ITAT Pune has ruled that a partnership firm cannot claim presumptive taxation under Section 44AD once gross receipts surpass Rs. 1 crore, even if income was initially declared at 8%. Crucially, it directed the Assessing Officer to reconsider disallowed business expenses on remand, reinforcing that denial of presumptive benefit does not automatically justify blanket expense rejection without proper scrutiny.
ITAT Kolkata rules that presumptive taxation under Section 44AD of the Income Tax Act does not apply to businesses with turnover exceeding ₹2 crore, invalidating the 8% addition imposed by the AO. The tribunal reduced the addition to 4% of turnover, setting a precedent for taxpayers in similar disputes.
ITAT Ranchi slashed the presumptive profit rate from 8% to 3% for an unaccounted electronic goods business, ruling that tax authorities cannot impose arbitrary additions without rejecting books or proving higher margins. The decision reinforces that presumptive taxation under Section 44AD must align with actual business performance, protecting small traders from speculative assessments.
ITAT Pune upholds disallowance of unproven expenses and TDS non-compliance, affirming that mere audit certification does not absolve assessee of statutory burden of proof.