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2018 (4) TMI 1903 - AT - Income TaxAssessment ex parte u/s 144 - estimation profit @ 5% of the turnover - CIT(A) reduced the rate of profit from 5% to 1% after considering the past history of assessee - HELD THAT:- The audited financial statement of the current year as well as profit declared by assessee in earlier years cannot be ignored while estimating the profit under best judgment assessment. The assessee for all the years had duly filed return of income which was not selected under scrutiny u/s 143(3) of the Act. Regarding the selection for scrutiny proceedings it is the policy of the Revenue and the assessee has no role to play in selecting the same under scrutiny. Therefore, in our considered view, it is imperative to take the guidance from the history of assessee. Rate of profit estimated by Ld. CIT(A) is correct and in accordance with the provision of law. Thus, we uphold the order of Ld. CIT(A) and this ground of Revenue is dismissed. Treating 1% of sale value of DEPB as income of the assessee - In the instant case, AO has treated the revenue from the sale of DEPB as income from other source. However, Ld. CIT(A) reversed the order of AO by holding that the amount of sale for DEPB is part and parcel of the total turnover of assessee. Now the issue before us arises whether the amount of DEPB represents the income from other source or income from business. We find that there is a explicit provision u/s 28(iiib) of Act which clearly says that the amount of DEPB will be taxed under the head “income from business and profession”
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