ACIT v. Shubhasish Acharyya [ITA No. 1050/Kol/2013, dt. 15-4-2016] : 2016 TaxPub(DT) 2114 (Kol-Trib)

Disallowance under section 40A (3) whether independent of presumptive taxation

Facts:

Assessee in the business of construction was subjected to assessment on net profits. Further additions were made by assessing officer under section 40A(3) which was nullified by the Commissioner (Appeals) on premise that once NP is estimated then separate disallowance under section 40A(3) is uncalled for. On further appeal:

Held in favour of the assessee that once net profit is estimated no disallowance under section 40A(3) is warranted.

Applied: (i) CIT v. Mohammad Dhurabudeen (2008) 4 DTR (Mad) 218

(ii) CIT v. Banwarilal Banshidar (1998) 229 ITR 229(All)

(iii) CIT v. Santosh Jain (2008) 296 ITR 324(P&H) 159 Taxman 392(P & H)

(iv) CIT v. Purushottamlal Tamrakar Uchehra (2003) 184 CTR (MP) 349, (2004) 270 ITR 314(MP)

(v) Indwell Construction v. CIT (1999) 232 ITR 776(AP)