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2016 (5) TMI 1176 - AT - Income TaxGenuineness of the production and sale of fertilisers and the amount of subsidy received from the Government of Uttar Pradesh - Held that:- Commissioner of Income-tax (Appeals) has recorded the findings that the assessee was engaged in manufacturing and sale of fertilisers and such findings have been made based on the remand reports and the orders of the trade tax authorities and the Central Excise authorities and the Directorate of Agriculture, U. P. Government. The learned Commissioner of Income-tax (Appeals) has also based his findings on the order of the Meerut court in an first information report filed against the assessee for showing fictitious production of fertilisers which was upheld by the High Court. We find that it could not be shown by the Revenue to us as to how such findings are not in consonance with the material on record. In view of quite speaking order based on evidence passed by the Commissioner of Income-tax (Appeals), we uphold the order of the Commissioner of Income-tax (Appeals). - Decided against revenue Estimation of net profit - Held that:- We agree with the contention of the learned authorised representative that the estimation of net profit in any case should be on a reasonable basis and we find that the maximum assessed profits shown by the assessee in the earlier years is 8.42 per cent. Further, since no other reasonable basis has been given by the learned Departmental representative, we hold that the reasonable net profit rate taking into consideration the past history of the assessee be taken at 8.5 per cent. and the income of the assessee be calculated accordingly. - Decided partly in favour of assessee
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