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2019 (4) TMI 1910 - AT - Income TaxEstimation of NP - assessee has filed return u/s 44AD - HELD THAT:- Enhanced sales as upheld by the ld. CIT(A), a further credit of ₹ 10.00 lacs is required to be given and on the balance, the Assessing Officer is to estimate the profit. Looking to the nature of the assessee trade, estimation of net profit @ 6% as against N.P. disclosed by the assessee @ 4.43% will be reasonable without given any reason the Assessing Officer has applied NP rate of 8.33% which was offered by the assessee on the sales in the year ending on 31/3/2014. During the year under consideration the turnover of assessee has increased substantially which is possible at a sacrifice of some margin profit rate. There is no justification for applying the NP rate at 8.33% of earlier year wherein the assessee has filed return u/s 44AD. Accordingly the Assessing Officer is directed to recompute the addition by applying 6% NP rate on the turnover suggested by me hereinabove. Addition u/s 69 with respect to stock in trade and cash balance - HELD THAT:- Assessee has not filed any details of such stock and cash in hand in its return of earlier year. By the impugned order, the ld. CIT(A) had given credit of ₹ 13,57,810/- by observing that the assessee had shown closing stock with the VAT return and the VAT department has accepted the return filed by the assessee wherein closing stock was shown at ₹ 13,57,810/-. There is no reason to give any further relief to the assessee in respect of closing stock. As found that the ld. CIT(A) has also accepted the cash balance. Accordingly, ground No. 2 raised by the assessee is dismissed.
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