Held that incentive earned for achieving the sales target as per franchise agreement is part of business turnover which is includible in turnover business, not chargeable to tax under the head income from other sources. As regards reimbursement of expenses failure to file evidence assessable as income from house property and not includible as gross receipts. Interest on fixed deposit assessable as income from other sources cannot be included in business receipts for estimating net profit under section. 44AD. (AY. 2017-18)
Euro Homes v. Dy. CIT(2023) TTJ 17 (UO) Trib)
S. 44AD :Presumptive basis-Incentive earned for achieving the sales target as per franchise agreement-Part of business turnover-Includible in turnover business-Not chargeable to tax under the head income from other sources-Reimbursement of expenses-Failure to file evidence-Income from house property-Not includible as gross receipts-Interest on fixed deposit-Income from other sources-Cannot be included in business receipts for estimating net profit under section. 44AD. [S. 22, 56, 194IB]