{"id":23305,"date":"2022-01-02T11:31:43","date_gmt":"2022-01-02T06:01:43","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&p=23305"},"modified":"2022-01-05T06:10:24","modified_gmt":"2022-01-05T00:40:24","slug":"addition-in-153c-assessment","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/addition-in-153c-assessment\/","title":{"rendered":"addition in 153C assessment"},"content":{"rendered":"

Assessee is an Individual engaged in the retail business and disclosing his income u\/SEc. 44AD of the Income tax. Assessee has made the booking of flat with builder. On the basis of some noting on the loose paper found during the course of search with the builder and on the basis of his statement U\/Sec. 132(4) about acceptance of On Money from flat holders, Notice U\/Sec. 153C was served.<\/p>\n

Assessee filed returns for 6 A.Y. and asked for the copies of seized papers, statement of builder and opportunity of cross examination. However the opportunity of cross examination the builder does not turn up and A.O. provided the declaration given by builder stating that what ever he has said in the statement U\/Sec. 132(4) and accepted by him is truth.<\/p>\n

The Assessing officer made the addition on the basis of noting on the seized paper on account of On Money and also made addition on the ground that assessee has not explained the nature of business, type of products traded and copies of sales bills etc. in support of its income U\/Sec. 44AD and therefore the claim of turnover cannot be characterized as business receipts to qualify for presumptive tax scheme and made the addition of entire turnover disclosed by assessee as unexplained receipts u\/s 69A of the Act and taxed the same u\/s 115BBE for the 6 years.<\/p>\n

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  1. Whether assessing officer can make addition in the assessment completed u\/s 153C r.w.s 143(3) without having any incrementing material about his business the income for which is offered u\/s 44AD ?<\/li>\n
  2. Whether action of assessing officer adding the entire gross receipts u\/s 69A on the ground that assessee has not explained the nature of business, type of products traded and copies of sales bills etc. in support of its income U\/Sec. 44AD.<\/li>\n
  3. Whether addition made on the basis of noting and the statement of builder about acceptance of on money is justified?<\/li>\n
  4. Whether denial of opportunity to cross examine the builder on the ground of his declaration about whatever stated by him in the statement u\/s 132(4) is true, is justified and legally correct ?<\/li>\n<\/ol>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[139],"qa_category":[23],"qa_tag":[477,202,470],"class_list":["post-23305","qa","type-qa","status-publish","hentry","qa_expert-research-team","qa_category-income-tax","qa_tag-addition","qa_tag-search-assessment","qa_tag-section-153c"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/23305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=23305"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=23305"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=23305"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=23305"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=23305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}