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2020 (6) TMI 127 - AT - Income TaxEstimation of profits - Finding of the Tribunal on the itemised additions related to the business profits of the assessee/ appropriate GP rate - HELD THAT:- We have two rates for quantifying the additional profits i.e. 0.61% of CIT(A) and 0.51% of the Tribunal for the assessment year 2006-07. The turnover is found increased for the assessment year 2007-08. Considering the same, we are of the opinion that the additional profits at 0.51% needs to be revised marginally. If the same is done, we find the decision of the CIT(A) with 0.61% of additional profits should be considered proper and appropriate. In summary, we proceed to hold that the order of CIT(A) with 10% should be fair and reasonable on this issue of quantification of the business profits. Therefore, we proceed to confirm the manner of quantification of business profits at the rate of 10%. Accordingly, since we confirmed the order of the CIT(A), the relevant grounds/additional grounds raised by the assessee are dismissed. Accordingly, we order the Assessing Officer to quantify the profits of the business and delete all the business linked itemised additions. Additions u/s 40(a)(ia) - transport charges incurred related to the purchase of earth (murum) - HELD THAT:- We find there is need for undertaking the comparative analysis of facts of the cases cited above. For the said reason, we find it relevant to remand this issue to the file of the Assessing Officer. The Assessing Officer shall decided the issue after granting reasonable opportunity of being heard to the assessee in accordance with set principles of natural justice. Accordingly, this issue is allowed for statistical purposes. Quantification of the business profits of the assessee for A.Y. 2007-08 as well as the GP estimation as done by the CIT(A) - HELD THAT:- Additions and relied heavily on the order of the Tribunal [2019 (9) TMI 861 - ITAT MUMBAI]. Further, we also approved the estimation of profits at a percentage of profits. We have also approved the requirement of taxing the additional profits applying the rate of 0.61% on the total turnover of ₹ 137.13 crores of the assessee for the assessment year 2007-08. In the process, we slightly deviated from the 0.51% for assessment year 2006-07. In effect, the said grounds no.1 to 5 of the Revenue should be considered as adjudicated while dealing with the grounds no.2 to 7 of the assessee’s appeal. Miscellaneous receipts - HELD THAT:- On perusal of the Chart furnished before us on the gross receipts mentioned at sl. No. (a) to (f) of the Chart, we find some of the receipts should be taxed at the rate of 10% as done by the CIT(A) and others need to be taxed at the rate of 100%. Keeping the prima-facie opinion to the scrutiny of the authorities, we find it relevant to remand to the file of the Assessing Officer as requested by the counsels. We dismiss the AR’s contention not admitting the said ground since the issue cannot be said to be used for the first time considering the finding of the Assessing Officer in his odder and the manner of making of additions by way of itemised additions. Rejecting the legal jurisdictional issue raised by the ld. AR, we are of the considered opinion that this aspect of the taxation on such receipts requires to be remanded to the file of the Assessing Officer for fresh adjudication of the issue after granting reasonable opportunity of being heard to the assessee in accordance with set principles of natural justice. Accordingly, ground no.6 is allowed for statistical purposes. Addition u/s 69C - expenditure stated as “MLA Balance” - HELD THAT:- We find it is escapable discretion that the word used as “MLA Balance”. In our considered view that the expression ‘balance’ cannot be described as payment made in this regard. We perused the relevant discussion given by the CIT(A) on this issue and find the decision of the CIT(A) is fair and reasonable and it does not call for any interference. Accordingly, ground nos.1 and 2 of the Revenue are dismissed.
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