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2016 (4) TMI 999 - AT - Income TaxNet profit determination - Held that:- We find that in Assessment Year 2008-09 also, the Assessing Officer applied net profit rate of 7% as against 8% in the present year and when the assessee carried the matter before the Ld. CIT(A), Ld. CIT(A) held that net profit rate of 4% should be applied subject to allowing of deduction for interest and salary paid to the partners. In this manner, Ld. CIT(A) reduced the assessed income to ₹ 16,01,949/- as against income computed by the Assessing Officer at ₹ 43,31,680/- in that year. Hence, we are of the considered opinion that regarding applicability of net profit rate of 4%, the issue is covered by the Tribunal’s order in assessee own case. Therefore, respectfully following the same, we hold that in the present year also, net profit of the assessee should be assessed at 4% of gross receipt as has been held by the Ld. CIT(A) because we do not find any reason to take a contrary view in the present year. In the present case, we find that initially the Assessing Officer issued notice u/s 142(1) of the Act but the same was not complied with and thereafter, the Assessing Officer issued notice u/s 142(1) again for which part compliance was made by the assessee by appearing before the Assessing Officer along with the copy of cash book and audit report of the assessee firm but the assessee firm did not comply fully to the questionnaire annexed to the notice u/s 142(1) of the Act. The assessee has not produced the copy of such questionnaire attached by the Assessing Officer along with notice issued u/s 142(1) and the letter submitted by the assessee before the Assessing Officer in compliance thereof. Hence, in the present case, it cannot be said that there is some non cooperation of the assessee making a difficult to determine the correct income but in the present case, there is substantial non compliance if not full non compliance by the assessee and therefore, in the facts of present case, this Tribunal’s order cited by Ld. AR of the assessee is not applicable. There is no other argument of the Ld. AR of the assessee as to why and how deduction should be allowed to the assessee in respect of interest and remuneration to the partners. Hence, on this issue, we find no reason to interfere in the order of Ld. CIT(A).
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