ANANDKUMAR Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) is directed against the order dated 30.01.2019 passed by the Income Tax Appellant Tribunal, 'A' Bench, Chennai (hereinafter referred to as 'the Tribunal') in I.T.A.No.573/CHNY/2018 for the assessment year 2012-13.

(2.) The present appeal has been filed raising the following substantial questions of law:

(3.) The assessee is an individual, a partner in M/s.Kumbakonam Jewellers, M/s.ANS Gupta and Sons and M/s.ANS Gupta Jewellers. The assessee filed his return of income for the assessment year under consideration admitting a total income of Rs.43,53,066/-. The assessment was selected for scrutiny and it was finalized under Section 143(3) of the Act by order dated 03.03.2015 disallowing the claim made by the assessee under Section 44AD of the Act. While filing the return of income, the assessee had applied the presumptive rate of tax at 8% under Section 44AD and returned Rs.4,68,240/- as income from the remuneration and interest received from the partnership firm. The Assessing Officer did not agree with the assessee and opined that Section 44AD is available only for an eligible assessee engaged in an eligible business and that the assessee was not carrying on business independently but only a partner in the firm. Further the assessee did not have any turnover and receipts of account of remuneration and interest from the firms cannot be construed as gross receipts mentioned in Section 44AD of the Act. Aggrieved by the assessment order dated 03.03.2015, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), Salem [CIT(A)]. The said appeal was dismissed by order dated 22.12.2017. Aggrieved by the same, the assessee preferred appeal before the Tribunal which was dismissed by the impugned order.