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TMI Blog2013 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... firming the income estimated by the Assessing Officer. 3. The facts relating to the case are stated in brief. The assessee is engaged in the business of running a bar hotel at Nilambur. The return of income filed by the assessee for the year under consideration was taken up for scrutiny by the Assessing Officer. When the case was posted for hearing, the assessee could not furnish any details with regard to the various expenses claimed by it on the reasoning that the business was taken over by another group. Under these circumstances, the Assessing Officer proceeded to estimate the income of the assessee. 4. The Assessing Officer noticed that the rate of gross profit reported by the assessee works out to 21.61% on the total turnover report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t file the appeal in time before the Ld. CIT(A). The Ld. Counsel submitted that the assessee has established that there was a reasonable cause in not filing the appeal in time and hence contended that the Ld CIT(A) was not justified in refusing to condone the delay. The Ld Counsel further submitted that the Ld. CIT(A), after refusing to condone the delay, has disposed the appeal on merits also. 7. On the other hand, the Ld. DR strongly defended the order passed by the Ld. CIT(A). 8. We have heard the rival contentions and carefully perused the record. In the instant case, we notice that the Ld. CIT(A), after refusing to condone the delay, has disposed of the appeal on merits. Now the question that arises is whether the Ld. CIT(A) was righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nswered in favour of the assessee and against the Revenue". In the instant case also, the Ld CIT(A) has disposed the appeal on merits, after recording that he is not inclined to condone the delay. In view of the decision rendered by Hon'ble Madras High Court, the delay in filing the appeal before the Ld. CIT(A) is deemed to have been condoned by the Ld. CIT(A). 9. Now we shall consider the grounds raised on merits. We notice that the Assessing Officer has adopted G.P. ratio of 32% in place of 21.61% reported by the assessee. In this regard, the Assessing Officer has considered the Gross Profit ratio reported in the following cases, which are engaged in the same line of business: (a) M/s. Hotel Samrat 31.22% (b) M/s. Hotel Swagath 28.92% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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