16 August 2010
Respected Sir My client has shown net profit Rs 0.85 lacs on total receipt from Civil works Rs. 37.69 lacs & also get audited his account for the assessment year2008-2009. Now case under scrutiny, can ITO taxed on such income which is more than 8% of gross receipt,i.e. after disallowance of expenditure the total profit is greator then the limit prescribed under section 44AF .ie. 8% of Total receipt 37.69 lacs. means 2.96 lacs.
can now assessee want show the profit under section 44AF. can he do
16 August 2010
AS YOU MENTION CIVIL WORKS THE SECTION WILL BE 44AD IF ASSESSEE DOES NOT OPT 44AD THEN THE ASSESSING OFFICER HAS NO RIGHT TO ASSESS THE INCOME U/S 44AD. BUT ASSESSEE MAY DISALLOW CERTAIN EXPENSES IF YOU DONT HAVE PROPER EVIDENCE.
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