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2013 (6) TMI 662 - AT - Income TaxExpenses made u/s 144 disallowed - CIT(A) allowed part relief - Held that:- As no appearance was made before the AO despite various opportunities it is a settled law that AO has to make a best judgment assessment, the same has to be judicious and on fair basis but in present case fair basis cannot be assessee's own results for earlier years because such assessment were never subjected to scrutiny. The assessee is engaged in the business of manufacture and sale of bottling plants and had turnover of Rs. 87,21,688/-. It is very difficult to believe that assessee has earned only a net profit of Rs. 32,799/- in the current year. In assessment year 2006-07, the assessee has shown only a profit of Rs. 103/-. Persuing the Profit and Loss account for last three years and it was noticed that assessee has not paid any salary or interest to the partners. As that assessee consists of two partners and the partners do not have any other income failure to understand how the assessee was running his household if no salary was drawn from the firm in the absence of any other income. In any case without any charge of interest and salary to partners net profit shown by assessee is unreasonably low. The estimate made by CIT(A) seems to be more than reasonable and therefore, nothing wrong with his order and confirm the same.
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