9911796707
TMI Blog2010 (12) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... CE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. Rishab Kapoor, Advocate for the appellant. Mr. Vivek Sethi, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. The appeal was admitted by this Court on May 20, 2008 for determination of the following substantial question of law:- Whether the Tribunal is justified in arriving at the conclusion towards net profit rate estimation on the basis of fresh and new base never pleaded by the litigants? 2. The facts necessary for adjudication as pleaded in the present appeal are that the assessee is doing the business of purchasing yarn from the market and selling the same to the wholesalers after getting it manufactured from outsiders. The assessee filed its re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the parties. 4. The Tribunal while partly allowing the appeal of the revenue had held that the net profit rate as per books of accounts of the assessee worked out to 0.34% on sales of Rs.58.50 lacs and the books of accounts had rightly been rejected. The assessee's failure to produce the books of account along with bills and vouchers to justify that the sales made to its sister concern were at the market rate, it was taken to be fair and reasonable to estimate the income by applying net profit rate of 5% of the sales. The relevant observations of the Tribunal are as under:- However, the Tribunal while sustaining the order of the CIT(A) observed that the case was distinguishable from the case relied upon by the Ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te; and that this was first year of assessee's business, we are of the considered opinion that it would be fair and reasonable to estimate the income by applying net profit rate of 5%. No further disallowance of commission from the income so computed would be separately made. Accordingly, the order of the CIT (A) is set aside. While the ground of appeal relating to deletion of trading addition is partly allowed, the ground relating to deletion of disallowance is rejected. 5. Learned counsel for the assessee was unable to point out any illegality or perversity either in the findings recorded or in the approach of the Tribunal in adopting net profit rate of 5% of the sales made in the facts of the present case, which may warrant interfer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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