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2022 (12) TMI 1215 - ITAT GAUHATIDetermination of undisclosed business turnover, arbitrary application of net profit rate at 8% - HELD THAT:- As assessee has stated to be a commission agent for selling fish imported from M/s. Babul Enterprises of Bangladesh and copy of consignment agreement has also been filed before the ld. CIT(A). Assessee was to get commission at 1% of the sale value. Application of net profit rate at 8% on the total undisclosed business turnover would be excessive and higher, which will hit the assessee. We, therefore, in order to bring an end the controversy and also in the interest of justice and being fair to both the parties and also considering the fact that there was undisclosed sales prior to 1.8.2014, the assessee himself has offered the N.P rate at 2.03% on the disclosed turnover also, estimating the net profit @ 4% will meet the end of justice. Thus, the estimated net profit on undisclosed business turnover, will works out at Rs.50,56,562/- and the same stands confirmed and remaining addition stands deleted. Thus, ground nos. 2 to 5 are partly allowed. Addition for undisclosed interest - HELD THAT:- We are of the considered view that since we have already estimated the business income of assessee for the year under consideration, we do not find any merit in the action of the ld. AO making the said addition. The same stands deleted. Ground no. 7 is allowed. Unexplained investment - HELD THAT:- We find that in the undisclosed bank account held with Axis Bank the initial funding towards investment was made. Considering the returned income and additions confirmed by us we are of the view that assessee has sufficient creditworthiness to explain the source of Rs.49,999/- and therefore, no addition is called for. Thus, finding of the ld. CIT(A) is reversed and ground no.8 is allowed. Credit of tax, which has been deducted at source from the assessee - HELD THAT:- We find merit in this ground of assessee and thus, restore this issue to the ld. AO, who shall examine the veracity of claim of assessee and if credit is not given for the tax deducted at source, the same should be allowed. Thus, ground no. 9 of assessee’s appeal is allowed for statistical purpose. Not allowing proper opportunity of bearing heard - HELD THAT:- We fail to find any merit in this submission of assessee as S/Shri Deb Roy & Sudeb Roy appeared and filed written submissions/explanation, which has been duly considered by the ld. CIT(A). Therefore, there is no merit in ground no. 6 raised by the assessee.
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