filed
showing the business income of Rs.1,60,120/- under Section 44AD of
the Act. The Assessing Officer did not accept the return ... inserted by Finance Act, 1994
w.e.f. 1.4.1994. Sub-section (1) of Section 44AD clearly provides that
where an assessee is engaged
gross receipts
do not exceed Rs. 40 lacs, the provisions of section 44AD
are applicable and income of the contractor in such cases is
determined ... made keeping in view of the
provisions of Section 44AD , the decision of the Hon'ble
Supreme Court in the case of Brij
total contract receipts (as
compared to 8% fixed under Section 44AD) and 10%
assessed by Assessing Officer in reassessment ... profit rate of 8% on the gross receipts provided in
Section 44AD , the profit worked out to be Rs.2,19,431/- as against
other
documents. In response to notice under Section 158BC , the assessee filed
return as per Section 44AD . Assessment was made in respect of
undisclosed income ... could not be treated as undisclosed income in view of
provisions of Section 158BB(1)(d) of the Act. We are unable to accept
This appeal has been filed by the revenue under Section
260A of the Income Tax Act, 1961 (in short "the Act") against ... notice under Section 142(1) of the Act was
issued on 22.10.2003. The assessment was completed by applying
the provisions of Section 44AD
which the assessee had applied
the presumptive rate of 8% under Section 44AD of the Act, thereby
declaring an income
which is fair and judicious keeping in view the
provisions of Section 44AD of the Income Tax
Act,1961, especially when the assessee failed ... appellant has invited the
attention of this Court to Section 44AD of the
Income Tax Act, 1961, and inter alia, contended,
firstly, that the respondent
