All bank deposits not automatically taxable income under Section 44AD: ITAT
The ruling came in the case of a Surat fruit trader, who had opted for the presumptive taxation scheme under Section 44AD of the Income Tax Act.
The Income Tax Appellate Tribunal has ruled that all bank deposits under Section 44 AD are not automatically considered taxable income. This decision was made in a case involving a Surat fruit trader who opted for the presumptive taxation scheme under Section 44AD. The trader had declared ₹14.57 lakh in his Income Tax Return, but the tax department assessed his income to be around ₹5.09 crore.
The discrepancy arose from the tax department's addition of ₹2.43 crore in bank deposits and credits, as well as other sources of income. The tribunal found significant errors in the tax officer's data and acknowledged that not every amount deposited in a bank account is taxable income. The case was remanded to the tax officer for further verification.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
