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2023 (9) TMI 105 - AT - Income TaxEstimation of income @8% of gross receipts - as argued AO has not brought any comparable cases in the line of business with such high rate of profit, thus pleaded to estimate the income on gross receipts @2% in view of the principles of natural justice - HELD THAT:- As undisputed notices were issued on the assessee, but the assessee did not respond to the notices issued by the department. Hence, the assessee’s case was dismissed ex-parte by the lower authorities. On careful examination of the facts and circumstances of the case and business model of the assessee,we direct the AO to estimate the profit @6% on gross turnover. Assessee ground are partly allowed. Levy of interest u/s 234B - As submitted by the Ld.DR, charging of interest is consequential and interest is mandatory and not discretionary as held by the Hon’ble Supreme Court in the case of Anjuman H Ghaswala [2001 (10) TMI 4 - SUPREME COURT] and also the decision of CIT Vs. Hindustan Bulk Carriers [2002 (12) TMI 10 - SUPREME COURT] Therefore, direct the AO to restrict the charging of interest on the profit estimated @6% on gross turnover. Hence, the ground raised by the assessee is partly allowed.
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