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1.1 The return of income was filed by the assessee under section 44AD of the Act, there is no requirement of maintenance of any Books of Accounts.

1.2 Section 44AD of the Act provides for presumptive rate of taxation.

1.3 The amendment in section 44AD of the Act bringing curbs on cash deposits was not there in the extant assessment year. 1.4 Pr. CIT has erred in assuming jurisdiction, the captioned order being arbitrary, misconceived, erroneous and unlawful, must be quashed.

ITA Nos.928 and 929/Del/2025

6. The ld. Counsel for the assessee vehemently argued that the assumption of jurisdiction under section 263 by the ld. PCIT was wrong as the return was filed under section 44AD. The ld. Counsel argued that as per current statutory prescription, there is no need to maintain any books of accounts under section 44AD and hence invocation of section 68 was void ab initio. The ld. Counsel further submitted that the captioned assessment order is not erroneous and prejudicial to the interest of revenue as the assessee has filed its return of income under section 44AD of the Act which provides for presumptive rate of taxation and there is no requirement of maintenance of any Books of Accounts. It was argued that Sub-section (5) of Section 44AD of the Act which was substituted by the Finance Act, 2016 w.e.f 01.04.2017 is not applicable to the subject reassessment order. Reliance was placed upon latest decision of Hon'ble Supreme Court of India, Decision dated 04/04/2025 in the case of Pr. Commissioner of Income Tax-1, Chandigarh Vs M/s. V-CON Integrated Solutions Pvt. Ltd. in IA No. 79463/2025.

7. Per contra, the ld DR relied upon the orders of the PCIT, Faridabad.

8. We have noted that the solitary issue that deserves to be resolved is correctness of assumption of jurisdiction under section 263 by PCIT in a case where Return of Income was filed under section 44AD. We have noted that this issue was conveyed to the lower authorities, which was ignored by them. We have noted that the issue of assessee filing its Return of Income under section ITA Nos.928 and 929/Del/2025 44AD has been incorporated by the ld. AO on page-7 of his order dated 21.03.2023 under section 144 r.w.s. 263. It is trite law that once an assessee has surrendered itself to a particular statute, it gets entitled to all the attending benefits. The assessee under section 44AD is required to calculate its income on percentage basis of its turnovers and is not required to maintain any books of accounts, etc. That being so the directions of the PCIT u/s 263 become questionable. The Revenue has not doubted that the assessee was filing its Return of Income under section 44AD of the Act. We have noted that this Tribunal on identical facts in the case of Shri Rattan Singh ITA No.1373/Del/2016 dated 22.12.2022 held as under:-

7. Per contra, learned DR relied upon the orders of the Pr. CIT.

8. Upon hearing both the parties and perusing the records, we find considerable cogency in the submissions of learned ITA Nos.928 and 929/Del/2025 Counsel of the assessee. Since, the return of income was filed by the assessee under section 44AD of the Act, there is no requirement of maintenance of any Books of Accounts. Furthermore, section 44AD of the Act provides for presumptive rate of taxation. The amendment in section 44AD of the Act bringing curbs on cash deposits was not there in the extant assessment year. In this view of the matter, we are of the opinion that Pr. CIT has erred in assuming jurisdiction. Hence, in the background of the aforesaid discussion, we set aside the order of Pr. CIT and quash the order under section 263 of the Act.