TMI Blog2022 (9) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the assessee. However, it is noticed that both the authorities below have applied net profit on estimation basis, without verifying it by making field inquiries. CIT(Appeals) has applied net profit @ 8%. Both the lower authorities have not considered comparable instances from market regarding similarly situated traders.It would sub-serve the interest of substantial justice if 5% is adopted as a net profit. AO is, therefore, directed to adopt 5% as net profit and re-compute the addition accordingly. The grounds of appeal are partly allowed. - ITA No. 1043/DEL/2018 - - - Dated:- 30-8-2022 - Shri Kul Bharat, Judicial Member For the Appellant : None For the Respondent : Sh. Om Prakash, Sr. DR ORDER PER KUL BHARA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts without any basis and purposed, the estimation of Net Profit @8% which is illegal bad in law and without jurisdiction and against the principle of natural justice. 6. That, the CIT (A) has erred in confirming the estimation of turnover Rs.2,29,82,999.00 by the assessing officer against the turnover declared by the assessee of Rs.21,94,930.00, which is without any basis and purely bases on wrong presumptions. 7. That, the CIT (A) has erred in estimating Net Profit @8% o n total Cash Deposit of Rs.2,29,82,999.00 without any basis and making a addition of Rs.18,89,615.00 to the income of the assessee on account of Low Net Profit without appreciating the facts. The assessing officer has not rejected the books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n up for hearing in the absence of the assessee and is being disposed of on the basis of material available on record. 4. Facts giving rise to the present appeal are that in this case the assessee had filed his return of income manually on 30.1.2015 declaring income of Rs. 1,99,540/-. The case of the assessee was picked up for scrutiny assessment on the basis of cash deposit in the savings bank account. In response to the statutory notice the authorized representative of the assessee attended the proceedings and sought adjournment. However, at two occasions the authorized representatives were changed by the assessee and on 8.2.2016 one Shri Nayab Arshad, CA, learned authorized representative of the assessee attended the proceedings and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rader. However, no such evidence was provided. 8. I have heard the learned DR and perused the material available on record. It was stated before the learned CIT(Appeals) that the assessee has been engaged in carrying on trade of live stock on small scale. Before the authorities below it was stated that the entire cash deposit was not the turnover of the assessee. The gross turnover receipts of the assessee was at Rs. 21,94,930/-. It was contended that the authorities below grossly erred in treating the total cash deposits as the turnover of the assessee. However, both the authorities below disregarded this version of the tax payer. It is well settled principle of law that the holder of account is under legal obligation to explain source ..... X X X X Extracts X X X X X X X X Extracts X X X X
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