9911796707
TMI Blog2015 (9) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 declaring total income of Rs. 3,59,100. During the course of assessment proceedings, notices under S.143(2) and S.142(1) were issued by the Assessing Officer fixing the case of the assessee for hearing from time to time. The said notices, however, remained un- complied with by the assessee and the Assessing Officer therefore, was left with no option but to complete the assessment of the assessee ex-parte under S.144 to the best of his judgment on the basis of material available on record. In the assessment so completed vide order dated 31.12.2010, he estimated the income of the assessee at Rs. 74,57,529 being the gross receipts of the business of the assessee as reflected in the TDS certificates. 3. Against the order passed by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the submissions made on behalf of the assessee as well as the material available on record, the learned CIT(A) held that in the absence of reliability of books of account produced by the assessee, the profit of the business was required to be determined on estimate basis. In this regard, he found that although the net profit of 11.43% declared by the assessee for the year under consideration before payment of partners remuneration and interest was higher than the net profit of 10% estimated for the immediately preceding year, i.e. 2007-08 and there was no ground for treating the entire Commission received by the assessee as its income, as done by the Assessing Officer. He held that in the facts and circumstances of the case inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation @ 15% because by following CIT(A)'s estimation, the net income works out to Rs. 4,15,732/- only, which is only 5.5% of the Commission received as against 10 to 15% discussed by the CIT(A) in Para 6.4 of the order. 5. The appellant crave leave to add to /alter/substitute the above grounds." 6. We have heard the arguments of both the sides and also perused the relevant material on record. Ground No.1 raised by the revenue is general in nature requiring no specific adjudication. In ground no.2, the Revenue has challenged the action of the learned CIT(A) in directing the Assessing Officer to allow deduction on account of remuneration and interest paid by the assessee firm to its partners from the profit estimated at 15% of the gross co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the time of hearing before us, the learned counsel for the assessee has contended that there was no failure on the part of the assessee firm as mentioned in S.144 and therefore, the provisions of S.184(5) are not applicable in the case of the assessee. A perusal of the provisions of S.144 however shows that the case of the assessee is squarely covered by clause (v) of sub-section (1) of S.144 inasmuch as the assessee having made a return has failed to comply with the notices issued by the Assessing Officer under S.143(2) and this position clearly evident from the record is not disputed even by the learned counsel for the assessee. We therefore, agree with the stand of the revenue on this issue that the provisions of S.184(5) are clearly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gross commission amount. We therefore, find no justifiable reason to interfere with the the impugned order of the learned CIT(A) on this issue and upholding the same, we dismiss ground No.3 of the Revenue's appeal. 9. As regards ground No.4 of the Revenue's appeal, it is observed that the issue raised therein has become infructuous as a result of our decision rendered on ground No.2 accepting the stand of the Revenue that once the income was estimated at 15% of the gross commission amount by invoking the provisions of S.144, no further deduction on account of interest and remuneration paid to the partners can be allowed as per the specific provisions of S.184(5) of the Act. This ground is accordingly treated as dismissed, having becom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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