No addition for discrepancies in books of account if income declared under presumptive income scheme

0 comments Friday, July 13, 2012

Allahabad High Court in an important judgement has held that where income is declared under presumptive income  scheme (i.e section 44AE in this case), no addition could be made on the ground that some discrepancies were found in account books and considering any sum as income from other source on the basis of such discrepancies. 
This judgement makes it clear that once income is declared under presumptive income scheme no books of account are required to be maintained by the assessee and if the books of account are being maintained by assessee even then no addition could be made on the basis of discrepancies found, if any in such books of account.
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