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2022 (11) TMI 274 - AT - Income TaxEstimation of income - percentage of the net profit as determined by the ld CIT(A) at 10% - HELD THAT:- A perusal of the order of the ld CIT(A) clearly shows that the highest percentage assessed by the AO is 6% for the assessment year 2004-05. For the assessment year 2006-07, AO has determined the income at 4.9% in the assessment u/s.143(3) of the Act. 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 CIT(A) and we do so. The findings of CIT(A) in regard to adoption of estimation of income of the assessee stands upheld and the estimation of income by the CIT(A) at 10% stands reduced to 8%. Addition of the protective addition - We are of the view that no interference is called for insofar as the addition made in the hands of the assessee was only protective and same CIT(A) has held the addition to be substantive in the hands of M/s. Serajuddin & Co. The addition, if at all, is on substantive basis in the hands of M/s. Serajuddin & Co. same can be challenged in the case of M/s. Serajuddin & Co. No other arguments in regard to legal ground which has been raised by the assessee, Ld AR submitted that he is not pressing the ground and has endorsed in the file to that effect. Consequently, the legal issue raised by the assessee stands rejected. Levy of penalty u/s 271F - HELD THAT:- As it is noticed that the facts in assessee’s case are similar to the facts in the case of Gobardhan Matia [2022 (11) TMI 214 - ITAT CUTTACK] in respect of levy of penalty under section 271F - Respectfully following the decision in the case of Gobardhan Matia [2022 (11) TMI 214 - ITAT CUTTACK] the penalty as levied u/s.271F by the AO and confirmed by the ld CIT(A) stands deleted.
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