TMI Blog2022 (6) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... s of account. The net profit estimated by the Ld. AO @ 0.45% is on higher side. Taking the totality of facts and circumstances into consideration and the net profit percentage shown by RS Poultry and SA Poultry for the AY 2018-19 it would be fair and just to estimate the net profit from the suppressed sales at 0.25%. Thus, the AO is directed to estimate the net profit at 0.25% of the suppressed consignment sales turnover and re-compute the income for the assessment year under consideration. Grounds raised by the assessee are partly allowed. - I.T.A No.857/Del/2020 - - - Dated:- 22-4-2022 - SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER Assessee by None Revenue by Shri Om Prakash, Sr. DR ORDER This appeal is filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148 of the Act was issued on 28.03.2018 and in response to the said notice assessee filed return on 25.04.2018 declaring Nil income on gross turn-over of Rs.42,42,620/-. The Ld. DR submits that in the course of reassessment proceedings the assessee was required to give explanation as to why investment to the extent of Rs.24,09,07,084/- should not be treated as undisclosed income and also gross profit @6.96% on suppressed turnover of Rs.23,31,52,666/-. The Ld. DR submits that in the course of survey statements were recorded u/s 133A of the Act from Mohd. Ikrar (Munshi), wherein it was stated that RS Poultry Supplier a partnership firm was run by Mohd. Razwan. Ld. Dr submits that a statement of Mohd. Rizwan was also recorded by the Investig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by other assessees in that area and this was done only by Mohd. Rizwan in his individual capacity due to his personal relations with Sky Lark Hatcheries (P) Ltd. It was also contended by the assessee that similar value of transactions of purchase and sale which the assessee entered into in AY 2018-19 with R.S. Poultry and SA Poultry and the net profit plus interest and remuneration paid to partners were shown at 0.40% and 0.28% respectively and, therefore, assessee himself offered to estimate the profit element at 0.14% on consignment sales. Ld. DR submits that since the explanation given by the assessee was not convincing, the AO rejected the books of account of the assessee and estimated the net profit at 0.44% on suppressed consignmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 0.45%. In my opinion the AO is justified in rejecting the books of account as the assessee did not reflect the correct picture of its true profits as the consignment sales were not recorded in the regular books of account. However, the net profit estimated by the Ld. AO @ 0.45% is on higher side. Taking the totality of facts and circumstances into consideration and the net profit percentage shown by RS Poultry and SA Poultry for the AY 2018-19 it would be fair and just to estimate the net profit from the suppressed sales at 0.25%. Thus, the AO is directed to estimate the net profit at 0.25% of the suppressed consignment sales turnover of Rs.23,38,71,465/- and re-compute the income for the assessment year under consideration. Grounds raise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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