COMMISSIONER OF INCOME TAX Vs. KAMLESH

JUDGEMENT

(1.) This order shall dispose of afore-mentioned 17 appeals arising out of order dated 31.03.2010 passed by the Income Tax Appellate Tribunal, Delhi Bench 'D' New Delhi (for short 'the Tribunal') in respect of the assessment year 2006-07.

(2.) The Revenue has claimed the following substantial questions of law:

(3.) The assessees in the present cases, had filed return of income under the head 'Income from business or profession' after applying the provisions of Section 44-AD of the Income Tax Act, 1961 (for short 'the Act'). However, during the course of assessment proceedings, it was found that the assessees have not done any contract work of PACL India Limited. Since no work has been done by the assessees, therefore, no expense can be allowed. Thus, the receipts of the assessees from PACL India Limited were treated as income of the assessees under the head 'Income from business or profession' on protective basis. Such order passed by the Assessing Officer was challenged before the Commissioner of Income Tax (Appeals), Rohtak.