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3. Aggrieved by the additions in the assessment order, the assessee filed appeal before ld. CIT(A). Before ld. CIT(A), the assessee filed detail written submission. In challenging the reopening under section 147 as well as issuance of notice under section 148 and addition on merit. The submission of assessee is recorded in para 5 at page no. 9 to 26 of order of ld. CIT(A). The assessee in its submission submitted that assessee has shown presumptive income under section 44AD of Rs. 1,25,570/-, income from other sources of Rs. 70,735/-, thus, gross total income of Rs. 1,96,305/- and after claiming deduction under Chapter VIA of Rs. 4,702/- shown taxable income at Rs. 1,91,603/-. During the year, the gross total turnover of assessee was Rs. 4,78,580/-. The assessee has declared presumptive business income under section 44AD of Rs. 1,25,570/-. The assessee is a small labour contractor. The assessee received labour contract from Art Cottage Co-operative Housing Society Ltd. of Rs. 1,52,850/- on which TDS ITA Nos. 1870, 1869 & 1868/Mum/2025 Priti Suresh Purhoit under section 194 of Rs. 3,057/- was deducted which is reflected in Form 26AS. There was other small receipt from other contract in cash of Rs. 3,25,730/- which is also offered for taxation under section 44AD. The assessee stated that her husband is civil contractor and she undertaken small labour contract with the support of her husband and executed such contract with also in the same business. No books of account were maintained by assessee. The assessee furnished his reply in response to show cause notice before assessing officer. The assessing officer rejected the reply of assessee and treated the entire receipt as unexplained. On the objection of assessing officer that assessee has not debited any expenses. The assessee explained that such expenses were incurred in cash which was met out from the cash receipt as well as some other cash withdrawal and there is no question of any entry as the assessee is not required to maintain any books of account. To support her submission, the assessee relied upon various case laws wherein it was held that books of account are not required under section 44AD returns. In her submission dated 25.01.2025, theassessee further submitted that 8% of total turnover of Rs. 4,78,580/- is only of Rs. 38,286/-, whereas the assessee offered income at Rs. 1,25,570/- which is much higher than the ratio of required presumptive scheme. During the search action, no unexplained cash has been found, so provision of section 69A cannot be applied. On the reliance of statement of assessee during the assessment, the assessee relied on the decision of Calcutta High Court in CIT vs Tara Chand Mahipal 65 taxmann.com 29 (Cal) wherein it was held that mere statement cannot be a material or information since it has to relate to some other ITA Nos. 1870, 1869 & 1868/Mum/2025 Priti Suresh Purhoit evidence, unless it is corroborated with other evidence it cannot be a basis for computation. Mere statement cannot be a basis for computation of income. Decision of Gujarat High Court in PCIT vs Nageswar Enterprise 122 taxmann.com 41 wherein the assessing officer made addition in the hands of assessee firm for unaccounted investment and purchases merely on the basis of statement of partner of assessee before Directorate of Revenue Independent (DRI) and no other evidence were brought on record, so additions were deleted.

4. The ld. CIT(A) on considering the assessment order and the submission of assessee including Circular of CBDT No. 5 of 2010 noted that assessee in her statement, recorded under section 132(4) stated that she is house-wife and does not have any source of income and not filed return of income. However, the assessee has shown contract receipt of Rs. 4,78,580/- under section 44AD. No supporting evidence in support of claim of presumptive income under section 44AD is filed. Further, there is no bank entry of expenses. Even during appellate proceeding, the assessee has not furnished any documentary evidence. The ld. CIT(A) referred the decision of Apex Court in CIT vs P. Mohana Kala 291 ITR 278, wherein it was held that money came by way of cheque and paid through process of banking transaction itself is of no consequences. The assessee is not carrying out any business activity. The assessee has not fulfilled this requirement of provision of business income under presumptive basis as there is no business activity. On the basis of aforesaid observation upheld the addition made by assessing officer. Further, aggrieved the assessee is filed present appeal before Tribunal.

8. I have considered the rival submissions of the parties and have gone through the orders of lower authorities carefully. I have also deliberated on the ITA Nos. 1870, 1869 & 1868/Mum/2025 Priti Suresh Purhoit various case laws.There is no much dispute on the facts of present case. In my view short dispute in the present appeals are as to whether the assessee's income is liable to be considered under section 44AD and/ or if not acceptable,addition under section 69A is justifiable. I find that revenue has not disputed the income of assessee form "other sources" which is in the form of interest income. The total receipt form contract as per details in Form-26AS is only of Rs.152,850/- and the assessee also claimed cash receipt of Rs. 3,25,730/- from small labour contract, thus aggregate of Rs.4,78,580/-. From business receipt the assessee has shown net income of Rs. 1,25,570/-, which is more than 26% of business receipt. Though, as per contention of the assessee she is no supposed to maintain books of account if the assessee is offering income under section 44AD. I am conscious of the facts that the assessing officer has not accepted income of assessee offered under section 44AD by taking view that the assessee does not fulfilled the conditions of eligible business. One of the reasons to suspect the activities of civil contract business is that during search action statement of assessee was recorded wherein she disclosed that she is house wife and not earning any income, but filing return of income. On the basis of such statement the assessing officer asked the assessee to furnish the details of business income. I find that there is no other corroborative evidence against the assesses own statement. Search was carried on 25.01.2023, however, the return of income was filed on 31.03.2021, much prior to the search action. The case of assessee was reopened on the basis of search action and addition in re-assessment order is passed under section 69A. I also find that ITA Nos. 1870, 1869 & 1868/Mum/2025 Priti Suresh Purhoit the assessee has also shown similar business income under section 44AD in AY 2023-24, which has been accepted in the assessment order, passed under section 143(3)dated 31.12.2024.

9. I find that the assessee before the assessing officer contended that she is doing small contract business and also claimed that TDS of Rs. 3057/- was deducted by payer from the contract receipt i.e. by Art Cottage Co-operative Housing Society Ltd. of Rs. 1,52,850/-, TDS is reflected in Form 26AS. There was other cash receipt from other contract in cash of Rs. 3,25,730/-. Thus, the assessee has reasonably explained the source of cash, which is also offered for taxation under section 44AD. In my view the assessee has discharged her primary onus in explaining source of money on which profit under section 44AD was offered to tax. The detail of payer is available in Form 26AS. Mere statement of assessee is not sufficient to make addition under section 69A. Once, the assessee has discharged her onus, there is no other burden on the assessee, the onus shifted on the assessing officer to prove otherwise by making further investigation and to bring adverse material. Similar view was taken by Hon'ble Punjab & Haryana High Court in CIT Vs Jawahar Lal Oswal (2016) 382 ITR 253/76 taxmann.com 168 (P&H). Thus, in my view income offered by assessee under presumptive income under section is liable to be accepted. In the result, the grounds of appeal raised by the assessee are allowed.