Interest on advances and applicability of Sec 44AD.

Assesse has been carrying on the business of lending money on interest, he has offered the income of interest u/s Section 44AD at 88% against the statutory requirement of 6%. 12% of the income have been incurred on expenses such as Bank charges, Depreciation, insurance of Car and its running expenses, salary of accountant/manager and Telephone Expenses. The case have been reopened for the A.Y. 2020-21 u/s 148 of the I.T Act, 1961 on the ground that income should have been offered under the head of Income from Other sources. Query: Whether the action of the A.O is justified? Any…

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  In the context of Section 148A and 148 of the Income Tax Act

Assessee is a partnership firm, which filed its return of income for A.Y 2015-16 on due date. The said return was selected for scrutiny and assessment u/s 143(3) was completed accepting the returned income. On the basis of information available for the past years where 25% of vehicle expenses were disallowed on account of personal nature.  In the assessment completed u/s 143(3) for A.Y 2015-16, no such disallowance was made. Based on this information, AO re-opened the concluded proceedings by issuing notice u/s 148 relying upon provisions of section 148 and 149(1)(b) of the Act. Assessee is of the view…

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