9911796707
TMI Blog2013 (6) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 for Rs. 4,43,000/- out of total disallowance of Rs. 6,48,000/- and thereby allowed only part relief of Rs. 2,05,000/- 2. That the above said order is bad in law and contrary to the facts of case. 3. It is therefore, prayed that the appeal may please be accepted and such relief may kindly be allowed which may be deemed fit and proper under the circumstances of the case. 3. After hearing both the parties we find that assessee's case was selected for scrutiny and various opportunities were given to assessee to present himself along with books of account, however, no compliance was made. The Assessing Officer ultimately framed assessment u/s 144 of the Act. He made various disallowances of expenses after perusing the details given in the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d received were handed over to the C.A. of the assessee and the assessee was always under the impression that C.A. has made appearances. In any case, the Assessing Officer has also levied penalty for non-compliance of notices u/s 271(1)(b) of the Act but when this fact was pointed out, the penalty proceedings were dropped, therefore, assessee has justified reasons for non appearing. On merit he reiterated the submissions made before the CIT(A) and emphasized that even when the best assessment is made, the same is on the basis of a fair estimate and the results of last year of the assessee are the best indicators for reaching such fair estimate. However, it was admitted that no scrutiny has been taken up in assessee's case for last many year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is very difficult to believe that assessee has earned only a net profit of Rs. 32,799/- in the current year. In assessment year 2006-07, the assessee has shown only a profit of Rs. 103/-. We have perused the Profit and Loss account for last three years and it was noticed that assessee has not paid any salary or interest to the partners. It was stated before us that assessee consists of two partners and the partners do not have any other income. We fail to understand how the assessee was running his household if no salary was drawn from the firm in the absence of any other income. In any case without any charge of interest and salary to partners net profit shown by assessee is unreasonably low. The estimate made by Ld. C IT(A) seems to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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