No addition could be made under section 68 if Assessee has declared income  under section 44AD: Mumbai ITAT

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No addition could be made under section 68 if Assessee has declared income  under section 44AD: Mumbai ITAT

 

Here is an interesting judgement by Mumbai ITAT which has held that no addition could be made under section 68 if Assessee has declared income  under section 44AD.

The case details is as under:

DCIT Vs. Kalpak Kantilal Gada

1531/MUM/2023

The appeal was filed by the Revenue against the CIT(A)’s order for the AY 2017-18 was heard by the Income Tax Appellate Tribunal, Mumbai. The assessing officer added the entire turnover of Rs. 1,88,98,744 under section 68 of the Income Tax Act, alleging non-genuine trading activity by the assessee.
However, the Tribunal ruled in favor of the assessee, stating that since the income was declared under section 44AD, no addition could be made under section 68, as the assessee was not required to maintain books of accounts

 

The copy of the order is as under:

1706610523-ITA No. 1531 Mum 2023-Kalpesh Kantilal Gada 1

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