No addition u/s 68 sustainable if assessee is not maintaining books of accounts due to presumptive scheme of taxation

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No addition u/s 68 sustainable if assessee is not maintaining books of accounts due to presumptive scheme of taxation 

 

 

ITAT MUMBAI

 

DINESH KUMAR VERMA VERSUS ITO, WARD -2 (1) , KALYAN

ITA No. 1183/MUM/2019

 

Short Overview of the Case: 

 

Addition u/s 68

unexplained cash deposits

 

Non maintenance books of accounts as the assessee filed return of income U/s. 44AD i.e. under presumptive tax scheme

 

Assessee was not maintaining books of account

 

ITAT held as under : 

 

The Co-ordinate Bench of the Tribunal in the case of Shri Kokarre Prabhakara vs. ITO [2020 (9) TMI 536 – ITAT BANGALORE], in a similar situation where the assessee had declared income under section 44AD of the Act without maintaining books and the Assessing Officer had invoked the provisions of section 68 of the Act, the Tribunal deleted the addition by placing reliance of various decisions of the Tribunal holding that where the returns are filed on the basis of income declared under section 44A of the Act, there cannot be any application of section 68 of the Act.

 

Thus, in the back drop of the facts, relevant provisions of the Act and case laws discussed above, no addition under section 68 can be made in the instant case. We find merit in ground raised by the assessee in appeal.

 

Conclusions :

 

No addition under section 68 can be made if assessee is not maintaining the books of accounts due to presumptive scheme of taxation

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