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2012 (7) TMI 363 - AT - Income TaxComputation of Income - CIT(A) restricted the income of assessee to Rs.3 Lakh as against AO's declaration of at Rs.10,51,812/- treating it to be excessive and on higher side - assessee contested that AO erred in clubbing the purchases of both the entities in the hands of the appellant estimating the sales of both the entities in the hands of the appellant - Held that:- The assessee claimed in the profit and loss account, payment of license fees of Rs.6,00,000/- which was paid for both the concerns and report of the Excise Inspector also confirmed it and the assessee also claimed deduction of total license fees of both the concerns in the profit and loss account. Therefore, from the conduct of the assessee, it was clear that the assessee has shown ownership on both the shops in question and when the assessee was confronted of the fact and was called upon to file rejoinder to the remand report, the assessee did not say anything and stated that it is a matter of record of the AO. Assessee's claim that both the entities of AOP is to be assessed separately is found to be afterthought because no return of income for the assessment year under appeal was filed for AOP. The return of AOP was filed for the first time for subsequent assessment year 2005-06 after completion of assessment of assessee. Thus, no reliance can be placed in the assessment year under appeal that any valid AOP exists as claimed by the assessee - as the assessee did not file the allotment letter of D.M. in respect of shop and no documentary evidence has been filed in support of any of the contentions. The CIT(A) was justified in upholding that both the shops were operated and owned by the assessee and estimate of profit of both the concerns in the hands of the assessee was justified - estimation of the figure of net profit at Rs.3,00,000/- which was in proportion to the income declared by the assessee in the return of income on the basis of declared purchases was correct - against assessee.
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