TMI Blog2020 (7) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... n the turnover which has already been taxed in the hands of M/s. Satyam Builders as a firm. What should be the percentage of the gross receipt to be taken as net income from the suppressed turnover? - In case of M/s. Satyam builders, partnership firm, in the assessment proceeding u/s 143(3) read with section 147 of the Act for Ay 2008-09, the ld AO himself accepted it @8%. There is no change in the business model of the partnership firm as well as the business of the assessee. Therefore, we direct the ld AO to adopt the profit ratio of 8% as net profit on the gross receipts. Accordingly, ground Nos. 4 and 5 of the appeal are allowed. - ITA No. 3735/Del/2018 (Assessment Year: 2008-09) - - - Dated:- 20-5-2020 - MS SUCHITRA KAMBLE, JU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion of the assessee that the reassessment order passed by the AO is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and have been recorded without application of mind on the part of the AO. 4. On the facts and circumstances of the case, learned CIT (A) has erred, both on facts and in law in rejecting the contention of the assessee that AO has no jurisdiction to re-open the case of the assessee since the belief has already been formed in the case of M/s Satyam Builders (Prop. Sh. Rajesh Gupta) by serving statutory notice of reopening assessment by AO of Ward 62(3). 5. On the facts and circumstances of the case, the learned CIT(A) has erred in confirming the addition of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y stayam builders of assessee and other partnership firm namely M/s. Satyam Builders. Before the Investigation Wing the assessee did not file any information. On verification of the ITD software it was noted that for Assessment Year 2008-09 during the course of enquiry the assessee has surrendered ₹ 14.25 lacs for Assessment Year 2008-09. On perusal of the bank account, it was found that assessee has cash withdrawal of ₹ 1260648/-, therefore, his case was reopened as per reasons recorded on 31.03.2015. The assessee has filed the higher return of income in response to notice u/s 148 of the Act of ₹ 2197077/- compared to the return filed u/s 139 of the Act of ₹ 766780/-. During the assessment proceedings it was found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the partnership firm as well as the proprietary concern. He further stated that in case of M/s. Satyam Builders the ld AO himself for Assessment Year 2008-09 has accepted net profit ratio of 8%. He further referred to the order passed u/s 250 of the Act on 27.04.2018 by the ld AO giving effect to the appellate order of the ld CIT(A), he submitted that the ld AO has not accepted that order of CIT (A) that turnover has to be been taxed only in case of one assessee , i.e. either in the hands of the assessee individual or in the case of the partnership firm. 7. The ld DR vehemently supported the order of the ld CIT(A). 8. We have carefully considered the rival contentions and also found that the issue where one turnover can be taxed in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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