above said facts, only addition of the
net profit as per section 44AF as was there at that time @5% of the total
deposit, could ... 44AF of the Act. Section 44AF for the
relevant year
44AF. (1) Notwithstanding anything to the contrary contained in sections
chapter VIA
(LIC u/s 80C ) for an amount of `13,252/-, the income was shown at
1,11,998/-. Section 44AF of the Income ... section 4 of
this section an assessee is also not liable to maintain books of
account as prescribed under section 44AA and 44AB
drastic variation in net profit rate. It is
mentioned that Section 44AF also envisages a profit rate of 5% on
turnover in the retail trade ... profit is only in the case where the conditions of Section 44AF of
the Act are satisfied. In the case of the appellant since
Notice u/s 148 is not a legal and valid notice, as
notice u/s 148 is issued when time available for issuing
notice ... absence of the books of account
being produced, provisions of section 44AF of the Act were applied for
estimating the net profit @ 5%. The addition
required, vide notices/questionnaires.
The AO therefore felt that provisions of section 44AF were applicable in case
of assessee who was a retailer ... books of account not being audited u/s.
44AB was misplaced. The AO has taken recourse to section 44AF without
detailing
notice u/s. 148 of the Act
on 23.3.2016. Thereafter notice u/s. 142(1) of the Act dated
27.6.2016 alongwith questionnaire and notice ... declared the net profit of
Rs. 2,38,810/- under section 44AF . The assessee was specifically
asked to furnish the justification of applying the provision
case
by rejecting the assessees' plea that provisions of
Section 44AF are not applicable to the assessee and
upholding the order ... that the case would be finalized under
3
the provisions of Section 44AF of the Act, consequently, some
details called for by the AO vide
profit may be estimated @5%
as per the provisions of section 44AF of the Act. The CIT(A) considered the
submission of the assessee ... these
transactions and since the profit is more than 20%, Section 44AF of the Act as
contended by the assessee cannot be accepted
account as the assessee was following
presumptive method of taxation u/s. 44AF of the Act.
4. Ms. Hiral Sejpal appearing on behalf ... section 44AA of the Act. Further, if the assessee was not maintaining books of
accounts and was following presumptive method of taxation u/s. 44AF
2008 declaring total income
of Rs. 86,954/-u/s 44AF, which was processed u/s 143(1)
of the Act on 06/06/2009 ... revenue
authorities and turnovers have also been accepted as per
section 44AF of the Act. Considering the submissions of the
ld. AR of the assessee
