We have heard the rival contentions and gone through the facts of the case. We find that the AO has applied the provisions of section 44AD and 44AF of the Act in assessing assessee’s income of Rs.40,81,308/- under totally misunderstanding of facts and law. We find that the assessee’s total turnover is at Rs.20,40,65,412/- and being a Limited Company, it’s accounts are audited as per provisions of the Companies Act, 1956 and under the provisions of section 44AB of the Act. Even otherwise the AO could have resorted to another provision in case the assessee fails to produce the books of accounts. The provisions of section 44AD/44AF of the Act apply only to
presumptive assessment, where the turnover is Rs.40.00 lacs or less and not the cases, where turnover is more than that. Accordingly, we are of the view that the CIT(A) has rightly deleted the addition and we confirm the same.9. In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on 20/07/2016.