NARESH KUMAR CHAPARIA,BURDWAN vs. ITO, WARD 1 (3), ASANSOL, ASANSOL

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ITA 382/KOL/2017Status: DisposedITAT Kolkata12 September 2018AY 2006-072 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that no separate addition can be made when the income is already assessed under the presumptive provisions of Section 44AD. The addition made under Section 40(a)(ia) was deleted.

What were the facts?

The assessee's income was assessed under the presumptive provisions of Section 44AD of the Income Tax Act. The Assessing Officer made a separate addition to the income.

What were the issues?

Whether a separate addition can be made when income is assessed under Section 44AD. Whether disallowance under Section 40(a)(ia) is permissible in such cases.

Which sections of the Income-tax Act were involved?

Section 44AD,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH ‘D’ KOLKATA

Before: Hon’ble Shri J.Sudhakar Reddy, AM & Shri S.S.Viswanethra Ravi, JM]

Heard together (3 matters)

ITA No.382/KOl/2017
ITA No.319/Kol/2017
ITA NO.308/HYD/2009

Read from the judgment's own cause title. This page is filed under one of them.

This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax-(A)-Asansol dated 16.12.2016 passed u/s 250 of the Income Tax Act, 1961 (the ‘Act ‘) relating to A.Y. 2006-07.

2.

The only issue that arises for our consideration is whether, a separate addition can be made when the income of the assessee is assessed by applying the presumptive provisions and income is determined u/s 44AD of the Act. The assessee relies on the following decisions to the proposition, that no separate disallowance can be made, when income of the assesee has been assessed at the presumptive rate precribed u/s 44AD of the Act : a)ITA No.319/Kol/2017 in the case of ITO vs NareshKumar Chaparia order dated 08.06.2018 b) in the case of Teja Constructions vs ACIT order dated 23.10.2009 3. No contrary decision is brought to our notice by the learned Departmental Representative. Under the circumstances, we respectfully following the decisions of Naresh Kumar Chaparia A.Y.2006-07 2 the coordinate bench of the Tribunal cited above and delete the addition made u/s 40(a)(ia) of the Act as the income in this case has been assessed u/s 44A of the Act.

4.

In the result the appeal of the assessee is allowed.

Order pronounced in the Court on 12.09.2018.

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