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2022 (3) TMI 1274 - ITAT ALLAHABADBest Judgement assessment u/s 144 - Estimation of income - Validity of assessment framed for want to service of notice u/s 143(2) - HELD THAT:- Department has filed the relevant record including the order-sheet of the assessment proceedings as well as the copy of the notice issued u/s 143(2) dated 14.09.2016 which was received by the assessee/AR on 16.09.2016. The assessee has not disputed the signature acknowledging the receipt of the said notice on behalf of the assessee. Accordingly, in view of the facts and circumstances of the case, the notice issued under section 143(2) dated 14.09.2016 was duly served on the assessee on 16.09.2016 which is within the period of limitation therefore, this ground of the assessee's appeal is de-void of merit and the same is dismissed. Addition while passing ex-parte assessment order u/s 144 - estimation the income of the assessee - AO applying net profit rate at 10% on the receipts as found deposited in the bank account of the assessee - CIT(A) restricted the addition to 5% as against 10% net profit rate applied by the Assessing Officer - HELD THAT:- There is no dispute that the return of income filed by the assessee does not disclose and contain the necessary information and details as required. Except the total income declared nil, no other details are given in the return of income. The Assessing Officer issued notices under section 143(2) as well as various notices issued under sections 142(1) alongwith the questionnaire to the assessee however, the assessee has not responded to the notice issued by the AO and consequently the assessment was framed under section 144 on the basis of the material available on record. CIT(A) has restricted the net profit applied by the Assessing Officer to 5% which shows that the adoption of net profit upon Assessing Officer was excessive and arbitrary however, the CIT(A) has also not given any basis for applying the net profit @ 5%. The assessee has not disputed the fact that for the assessment year 2014-15, the addition confirmed by the CIT(A) for applying profit rate at 5% is accepted and the dispute is settled under Vivad Se Vishwas Scheme, 2020. Since the computation of gross receipts/turnover of the assessee requires a proper verification of the details and facts to be produced by the assessee and consequently the estimation of the income is also required to be on the basis of some reasonable and proper criteria as a guidance for estimation of income therefore matter is set aside to the record of the Assessing Officer for the adjudication of these two issues for computation of gross receipts/turnover of the assessee and estimation of income by giving one more opportunity to the assessee to furnish the relevant details. Appeal is allowed for statistical purposes.
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