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TMI Blog2024 (8) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... r.w.s 144 of the Act passed by the NEAC (The A.O) ignoring the submission made by the appellant on 12.04.2024. GROUND II On the facts and circumstances of the case, and in Law, CIT(A) NFAC erred in confirming addition of Rs. 37,19,741/- by estimation net profit of 9.39% of turnover i.e. average of last three years Net profit ratio On the facts and circumstances of the case and in law the CIT and AO failed to appreciate the fact that: a) AO adopted the method of estimating the profit since under the pretext that the assessee has not filed the return u/s 148, which is factually incorrect. b) The assessee's financials were audited. The Tax auditor in his report had not made any adverse observations and qualifications AO resorted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return of income for the A.Y 2016-17 on 17.10.2016 disclosing a total income of Rs. 20,66,750/-. Subsequently, the Assessing Officer (AO) has received information about the business transactions and has reason to believe that there is income escaping the assessment and has issued notice u/sec 148 of the Act and there was no compliance. The AO on perusal of the financial statements found that the assessee has disclosed the income from salary of Rs. 15,00,000/- and income from business of Rs. 7,66,751/-.The A.O find that the assessee has disclosed net profit @ 1.94% for the year under consideration in comparison to preceding year @ 11.94%, therefore notice u/sec 142(1) of the Act was issued to explain the reasons for sudden dip in the profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the course of appellate hearings and details filed on 12-04-2024. Further the Ld.AR submitted that the assessee during the F.Y. 2015-16 was engaged in the business of wholesale trade and the profit margin in wholesale trade is very nominal and therefore cannot be compared to earlier years, where the assessee was engaged in the retail business. The Ld.AR mentioned that the assessee has a good case on merits and shall substantiate with the material evidences and supported the submissions with the factual paper book and the Ld.AR prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld. DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole matrix of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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