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2022 (11) TMI 548 - HC - Income TaxEstimation of income - ITAT applied the progressive rate of estimated profit for 5 years from 10% to 25% - Assessee sought Net profit rate to the entire receipts both disclosed and undisclosed - separate addition of the gross amount of undisclosed receipts to the taxable income - whether the assessing officer was justified in applying the order passed by the tribunal only in respect of the disclosed income? - HELD THAT:- As mentioned manner in which the order of the tribunal is to be interpreted has been rightly interpreted by the learned tribunal in its order dated 20th February, 2015 by observing that profit has to be decided for turn-over in its entirety. If that be the case, then the contention raised by the appellant needs to be accepted. As could be seen from the giving effect to order passed by the assessing officer assessing officer had given effect to the order of the tribunal by understanding as if the tribunal directed the net profit estimation only in respect of the disclosed income. The tribunal having clarified that the profit has to be estimated in its entirety, the view taken by the assessing officer in its order is incorrect. Thus, for the above reasons, the assessee is entitled to succeed. - The assessing officer is directed to apply the net profit rate as ordered by the tribunal in its order therein to the entire receipts of the appellant/assessee both disclosed and undisclosed.
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