Agra has erred in holding that the provisions of
section 44AF do not apply without giving any reasons for such a finding and
directing ... Pune), the Tribunal has held
that section 44AD (Analogous to section 44AF ) applies even in search cases. If it is applied in
search cases, then
section 40A(3)
of the I.T. Act, are not applicable in all cases where the
assessment is completed u/s. 44AF . Section 44AF ... assessee that provision section 40A(3) are not applicable as the
assessee has filed the return u/s. 44AF . However, the submission of
the assessee
bank deposits u/s 69 of the Act
which are having direct nexus with receipts of the assessee being assessed under section
44AF ... under section 143(2) of the Act were issued
and assessments were framed by passing assessment orders under section 143(3) read with
Section
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 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
small
trader and is covered by the provisions of Section 44AF on which the profit
rate of 5 % is to be applied. However, in place ... valid as books maintained
manually. As per provisions of Section 44AF when the assessee is not
required to maintain regular books of account and profit
which is fully covered u/s. 44AF of the Act. It is to be mentioned
that assessee has not disclosed any business or any turnover ... that the
assessee's business fall under the computation of u/s. 44AF of the Act for the
following reasons:-
"© The income from
account cases of retail business as per provisions of Section
44AF of the I.T.Act, hence the addition of Rs.18,335 deserves ... books of accounts in accordance with the provisions
contained in Section 44AF of the I.T.Act since the turnover of the assessee
was less
parties and considering the information on record and the
provisions of section 44AF, we are of the considered opinion that CIT(A)
was right ... income u/s 44AF of the Act and as per
section 44AF is not required to maintain books of account and he has
to declared
retail
trader and his income is declared as per provisions of Sec. 44AF of the Act.
She further submits that once the income is accepted ... income on the presumptive basis as per the provisions of
Sec. 44AF of the Act.
3 ITA . No.1418//PN/2010
Sandeep Madanlal Agrawal
