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2016 (5) TMI 1257 - AT - Income TaxEstimation of profit on the sales @ 0.5% - Held that:- As per information received in pursuance to enquiry made under section 133(6) with the parties to whom the assessee claimed to have sold goods, all of them are not only existing entities but are having PAN and all of them confirmed of having transacted with the assessee. It is also found that one of the parties is a listed company. The learned Commissioner (Appeals) also found that the assessee is of a man of small mean and in fact an employee of Shri Ashok Jain. That being the case, in our view, 5% net profit rate adopted by the Assessing Officer for a non–existent business is on a very higher side. Moreover, it is observed by us in assessee’s own case for assessment year 2008–09, the Assessing Officer has estimated the net profit from the very same business at 0.03%. Taking that as an indicator, in our view, the estimation of profit @ 0.5% by the learned Commissioner (Appeals) is reasonable, hence, calls for no interference. - Decided against revenue Addition on account of unexplained outstanding balance of creditors - CIT(A) delted the addition - Held that:- Commissioner (Appeals) felt it necessary to conduct enquiry himself and obtain information for enabling him to dispose off the appeal, in our view, no fault can be found with such procedure adopted by the learned Commissioner (Appeals). A reading of the statutory provisions referred to above makes it clear that not only the learned Commissioner (Appeals) is empowered to conduct such enquiry for obtaining information but there is also no need for him to confront the same to the Assessing Officer. Therefore, in our view, the learned Commissioner (Appeals) was not required to obtained a remand report from the Assessing Officer on the basis of information obtained by him under section 133(6) before deciding the issue. Moreover, the learned Commissioner (Appeals) after examining the evidence brought on record having found that the creditors appearing in assessee’s books are genuine there was no logic in again remanding the matter to the Assessing Officer. In the aforesaid facts and circumstances, we do not see any reason to interfere with the order of the learned Commissioner (Appeals) in deleting the addition made under section 68 - Decided against revenue
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