9911796707
TMI Blog2021 (4) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... ed its return of income on 31st March, 2011 declaring total income at Rs. 27,60,390/-. The case was selected for scrutiny. However, a perusal of the assessment order shows that on seven occasions there was non-attendance from the side of the assessee starting from the date 08.09.2011 to 15.02.2013. Subsequently, towards the fag end of the assessment proceedings, the assessee filed certain details, but, neither the books of account were produced nor full details were filed before the AO to verify the genuineness of the claims made in the P&L Account and the correctness of the income as computed by the assessee remained unsubstantiated. The AO, therefore, rejected the book results and determined the profit at Rs. 2,22,81,308/- by estimating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the Ld. CIT (A) has erred in allowing additional evidence produced by the assessee and in negating the action of the AO of estimating the income of the assessee at 15% of the gross receipt i.e. Rs. 2,22,81,308/- ignoring the fact that the assessee had failed to substantiate its claim by producing/furnishing the requisite documents/information during the assessment as well as remand proceedings. 2. The appellant craves leave for reserving the right to amend, modify, alter, ground(s) of appeal at any time before or during the hearing of this appeal." 5. The ld. DR strongly challenged the order of the CIT(A). He submitted that the assessee has filed the return declaring total income at Rs. 27,60,390/- and the AO had determined the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow the documents to Mr. Jitender Kumar, Inspector of the Ward. Referring to the various papers in the paper book, he submitted that full details were filed before the CIT(A) who has called for a remand report and, thereafter only he has passed the order accepting the offer of the assessee of additional income of 1% of the turnover. Referring to the copy of the assessment orders for A.Y. 2011-12 and 2012-13, copies of which are placed at paper book pages 123-132, he submitted that in both the years the book results have been accepted. In A.Y. 2011-12, the addition was only on account of disallowance u/s 43B and for A.Y. 2012-13 the disallowance is on account of 20% of computer expenses shown under the head 'Administrative expenses.' He accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to how and why the ld.CIT(A) has accepted the offer given by the assessee of additional income of 1% of the turnover which makes the net profit rate of 2.84%. Considering the totality of the facts of the case and considering the fact that net profit rate from A.Y. 2007-08 to 2009-10 varied from 4.26% to 5.94% and the net profit rate for the current year was shown at 1.84%, estimation of net profit rate of 4.5% under the facts and circumstances of the case will meet the ends of justice. Accordingly, the order of the CIT(A) is modified and the AO is directed to adopt the net profit rate of 4.5% on the turnover of Rs. 14,85,42,058/- as the net income of the assessee. The grounds raised by the Revenue are accordingly partly allowed. 9. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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