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2022 (11) TMI 215 - AT - Income TaxDetermination of income of the assessee - Estimation of income - AO completed the assessment by adopting the turnover of the assessee as adopted on M/s. Serajuddin & Co., and granting the assessee a reduction of 30% towards expenses - HELD THAT:- Details in the diary only show the details for 4 months. It is also an admitted fact that no books of accounts and vouchers have been maintained by the assessee, which is evident from the fact that the search did not bring out any books of account. However, in the assessment order, the AO refers to profit and loss account in his order. How this profit and loss account has been prepared is not ascertainable. AO had no details with him except the turnover of the assessee, which has also been extracted from the books of account of M/s. Serajuddin & Co. This being so, a perusal of the order of the ld CIT(A) clearly shows that he has taken into consideration all the issues to come to the conclusion in paras 5.1 & 5.2 of his order that the estimation of income of the assessee is the best method to determine the income of the assessee. We find no reason to interfere with these findings of the ld CIT(A) in respect of estimation of income insofar as neither the assessee nor the revenue has been able to dislodge the findings of the ld CIT(A). Percentage of the net profit as determined by the CIT(A) at 10% - A perusal of the order of the ld CIT(A) clearly shows that the highest percentage disclosed by the assessee is 6%. This being so, we are of the view that the interest of justice would be served if the estimation of the percentage of net profit is taken at 8% as against 10% directed by the ld CIT(A) and we do so. The findings of CIT(A) in regard that he is not pressing the legal grounds taken in Ground Nos.1 to 5 of cross objections. Consequently, Ground Nos.1 to 5 of cross objections stand dismissed as not pressed. Ld AR submitted that Ground Nos.6 to 8 are against the estimation as done by the ld CIT(A) at 10%. As we have reduced the estimation of the net profit of the assessee from 10% to 8%, Ground Nos.6 to 8 on merits stands partly allowed.
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