The Tax Publishers2021 TaxPub(DT) 0063 (Mum-Trib)

INCOME TAX ACT, 1961

Section 68

Since section 44AD does not obligate assessee to maintain books, provisions of section 68 could not be invoked where assessee had filed return of income under provisions of section 44AD without maintaining books of account.

Income from undisclosed sources - Addition under section 68 - Assessee not maintaining books of account and this case covered by under 44AD -

Assessee challenged addition made by AO under section 68 pleading that assessee filed return of income under section 44AD, i.e., under presumptive tax scheme, and, therefore, assessee was not maintaining books of account. Held: Maintaining books of account is sine qua non for making addition under section 68. Since section 44AD does not obligate assessee to maintain books, provisions of section 68 could not be invoked where assessee had filed return of income under provisions of section 44AD without maintaining books of account.

Relied:CIT v. Bhaichand N. Gandhi (1983) 141 ITR 67 (Bom.) : 1983 TaxPub(DT) 582 (Bom-HC), Madhu Raitani v. Asstt. CIT (2011) 10 Taxmann.com 206 (Gaw) (TM) : 2011 TaxPub(DT) 1943 (Gau-Trib), Manasi Mahendra Pitkar v. ITO (2016) 160 ITD 605 (Mum-Trib.) : 2016 TaxPub(DT) 4025 (Mum-Trib) and Kokarre Prabhakara v. ITO, ITA 1239/Bang/2019, DoD 11-9-2020.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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