conditions and limits specified under Section 40. So, for computing the deduction allowable from the income determined under Section 44AF, what is material ... conditions and limits specified in Clause (b) of Section 40'. When the proviso to Section 44AF subjects itself to 'conditions and limits specified
44AF read as under:
Special provisions for computing profits and gains of retail business.
44AF. (1) Notwithstanding anything to the contrary contained in Sections ... under Sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB
Cement Store on the basis of
provision of Sec.44AF
2. Income from Brick Kiln Rs.15,55,000/-
3. Unexplained credits in Bank ... Cement Store on the basis of
provision of Sec.44AF
2 . Income from Brick Kiln Rs.31,10,000/-
3. Unexplained credits in Bank
application u/s 154 by learned A.O. filed shown in paper book page
no. 28 submitted before the bench.
5. Section 44AF ... inserted by Finance Act, 1997 w.e.f.
1.4.1998. Sub-section (1) of Section 44AF clearly provides that where an
assessee is engaged
assessee
there is no basis for invocation of provisions of Section 44AF of the Act and
upholding the net profit rate ... U/s 44AB and the turnover as being admitted and specified in
the assessment order was much beyond the limit as prescribed U/s 44AF
plain reading of the section itself says that section 28
to section 43C of the I T Act that includes section ... there has been found a technical issue of Section 40A(3) of the Act.
(ii) Section 44AF begins with a non-obstante clause and
specifically
account are clearly enunciated in section 44AA of the Act. The assessee has
claimed deemed profits under section 44AF of the Act and offered ... gross receipts. However, to be eligible for the benefit of section
44AF of the Act, the proviso to sub-section (1) mandates that the total
secondly, the provision of section 44AF will
not be applicable in the case of the assessee because cash flow of
M/s. Vijay Cloth House ... loss account from his regular
books of account then provision of section 44AF cannot be held to be
applicable; and lastly, the Assessing Officer
assessee being retail business has opted for the provisions of section 44AF and filed the incometax return accordingly."
8. The Commissioner (Appeals) was noted ... assessee had been declaring income under the provisions of section 44AF was also not accepted. He was of the view that if any books
Income Tax Act , no section supports
such a wild decision of AO. However, the section 44AF if read carefully, reads
out the percentage assumed ... Income Tax Act , no section supports
such a wild decision of AO. However, the section 44AF if read carefully, reads
out the percentage assumed
