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2021 (5) TMI 634 - ITAT CUTTACKAddition as bills recoverable during the year - HELD THAT:- As the assessee has failed to prove that the amount is bills receivable during the year under consideration, therefore, the authorities below treated the same undisclosed bills receipts and added the same to the income of the assessee. Now, it is the contention of the assessee that the amount as already formed part of gross receipts disclosed as the same amount was received in subsequent year. Even otherwise, the contention of the assessee is that a profit percentage may be determined for the undisclosed receipts - we find force in the submission of ld. A.R. of the assessee that the profit percentage embedded the undisclosed receipts is to be taxed. To meet the ends of justice, if the profit percentage @ 5% on the undisclosed receipts is taxed in the hands of the assessee.. Therefore, direct the AO to determine the net profit @ 5% of the undisclosed receipts. Accordingly, this ground is partly allowed. Disallowance of 3.5% of the expenses - HELD THAT:- On perusal of the orders of lower authorities, find that since the assessee failed to submit the ledger accounts for expenses supported with bills & vouchers to the extent of ₹ 84,60,600/-, and considering the fact that the assessee has shown net profit @ 1.6% of the expenses, the AO disallowed the same on estimate basis @ 3.5% of ₹ 84,60,600/-, which comes to ₹ 2,96,121/-. The contention of assessee is that the percentage of profit determined by the AO is on higher side and requested to reduce the profit percentage. Ld. A.R could not explain as to why the assessee failed to furnish supporting bills and vouchers before the lower authorities and before the Tribunal. Therefore, CIT(A) has considered the issue correctly, which do not require any interference. Hence, this ground is rejected. Addition regarding deduction of TDS - HELD THAT:- CIT(A) has directed the AO to verify the claim of TDS and allow the credit as per law, as per the submission of the assessee. It was the submission of ld. D.R. that no credit can be allowed on the basis of TDS certificate without being demonstrated in the TDS portal. Hence, direct the AO to verify from the TDS portal and if the contention of the assessee is correct that TDS has been deducted, then same should be allowed.
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