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2023 (2) TMI 410 - ITAT KOLKATAEstimation of net profit - CIT(A) has adopted 6% net profit rate as against 0.25% disclosed by the assessee - As submitted that this Tribunal in assessee’s own case for AY 2012-13 [2021 (12) TMI 353 - ITAT RANCHI] has applied net profit rate of 1% and therefore, for the year under appeal, similar rate may be applied - HELD THAT:- Considering the fact that the assessee has himself prayed for the application net profit rate of 6% placing reliance on various judgments including that of Hon'ble Patna High Court in the case of Shyam Bihari [2012 (8) TMI 420 - PATNA HIGH COURT] we fail to find any merit in the ground raised by the assessee for applying net profit rate @ 1%. Thus, no interference is called for in the finding of ld. CIT(A). We accordingly dismiss ground nos. 1 & 2 raised by the assessee. Computation of interest u/s 234B - As contented same should be applied only on the returned income - HELD THAT:- As per provision of Section 234B(1) of the Act and Explanation 1 has a direct bearing on this issue we observe that it refers to ‘assessed tax’ which in case of regular assessment is a tax on total income determined under such regular assessment. Nowhere in this provision, it is stated that Section 234B of the Act, in the case of regular assessment, is to be computed on the returned income and not on the assessed income. Though the assessee has referred to the judgment in the case of Ajay Prakash Verma [2013 (1) TMI 140 - JHARKHAND HIGH COURT] however he failed to convince us that the said judgment is applicable in the instant case pertaining to AY 2010-11, for which the position of law is very clear as provided u/s 234B of the Act. Therefore, we are inclined to hold that interest for default in payment of advance tax u/s 234B of the Act in the case of regular assessment needs to be computed on the assessed tax as provided in Explanation 1 to Section 234B(1) of the Act. Thus, ground no. 3 raised by the assessee is dismissed.
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