TMI Blog2017 (8) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... time, it is also a fact that despite repeated opportunities given by the A.O, the assessee has not produced books of accounts. We are of the considered opinion that adoption of 3% net profit on the gross receipts excluding service tax will meet the ends of justice. It may be pertinent to mention here that this rate of estimated profit is only for this year and cannot be taken as a precedent for other years. Grounds raised by the assessee are accordingly partly allowed. - ITA No. 978/DEL/2013 - - - Dated:- 19-4-2017 - SHRI R.K. PANDA ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER For The Assessee : Shri K. Sampath, Adv Shri V. Rajkumar, Adv For The Revenue : Smt. Bedobani Choudhary, Sr- DR ORDER PER R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return at ₹ 2,30,58,414/- and estimated the net profit rate at 8% on such receipts and arrived at net profit of ₹ 18,44,673/-. 4. In appeal, the ld. CIT(A) directed the A.O to verify the gross receipts which, according to him, comes to ₹ 1,79,18,998/- after reduction of service tax and directed the A.O to adopt N.P. of 5% of the gross receipts excluding service tax. The relevant observations of the ld. CIT(A) at paras 5 and 5.1 of his order reads as under: 5. I have considered the issue and the submissions made by the AR. From the copies of Form ST-3 filed with Service Tax Department, the gross receipts for the year under consideration are ₹ 1,60,96,091/-. If service tax of ₹ 18,22,707/- is added to this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Counsel for the assessee, referring to copy of assessment order for A.Y 2010-11 passed u/s 143(3) of the Act on 24.12.2012, a copy of which is placed at pages 4 to 6 of the paper book submitted that the A.O has accepted the book results and only nominal additions were made on account of certain expenses. Referring to the copy of the assessment order for A.Y 2011-12 passed u/s 143(3) of the Act on 26.12.2013, he submitted that for this year also books were not rejected and some minor disallowance of expenses have been made in the order passed u/s 143(3) of the Act. He accordingly submitted that estimation of profit at 5% of the gross receipt is on the higher side and therefore, it should be suitably reduced to 2 to 2.5%. 7. The ld. DR, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O has not rejected the books results and has made nominal additions on account of various expenses being unverifiable in nature. Therefore, adoption of 5% N.P. rate on gross receipts for the impugned A.Y appears to be on the higher side. At the same time, it is also a fact that despite repeated opportunities given by the A.O, the assessee has not produced books of accounts. Under these circumstances, we are of the considered opinion that adoption of 3% net profit on the gross receipts excluding service tax will meet the ends of justice. It may be pertinent to mention here that this rate of estimated profit is only for this year and cannot be taken as a precedent for other years. We hold and direct accordingly. Grounds raised by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
