9911796707
TMI Blog2015 (3) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. 2. The assessee in the present case is a partnership firm which is engaged in the business of transport contractor. The return of income for the year under consideration was filed by it on 14.10.2008 declaring total income of Rs. 11,55,210. During the course of assessment proceedings, the assessee could not produce the books of account as well as the supporting vouchers and bills for verification of the Assessing Officer. The Assessing Officer therefore, rejected the book results declared by the assessee and estimated the business income of the assessee by applying a net profit rate of 10% to the gross transport receipts of Rs. 3,65,22,768. The amounts of incentive and bonus received by the assessee from its clients totaling to Rs. 11, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected by the authorities and flat rate is applied for estimating the book profit, no other addition can be amade separately relying on the very same books of account. 4. The CIT(A) found merit in the submissions made on behalf of the assessee, and accordingly restricted the estimation of income made by the Assessing Officer by adopting the net profit rate of 5% instead of 10% applied by the Assessing Officer, and that too by including the amounts of incentive and bonus in the gross receipts of the transport business, by recording the following observations in paragraph 5 of the impugned order-. "5. I have gone through the averments made by the appellant and also seen the assessment order besides perusing all other information available o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stimation at 5% instead of 10% adopted by him. In as much as the second part of turnover consisting of bonus, incentives etc. for better performance and the things like that is concerned, the Assessing Officer has added the entire amount of Rs. 11,49,056/- to the total income while finalising the assessment proceedings. The appellant's stand, as explained by the AR is that such receipts of bonus; incentives, etc. were received in the course of business activities and for the same activities, but nomenclature is changed. The stand of the AR that such second part of turnover is not a new item and in the earlier years the Department has accepted the same as returned, as forming part of turnover, has to be appreciated here also. For this year, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver since the assessee himself has stated that the receipt of bonus and incentive was for the same activities and the nomenclature is changed. 6. The ld. CIT(A) ought not to have directed to estimate the profit on incentive and bonus, as the assessee need not incur any exp for earning such incentive/bonus. 7. Any other ground(s0 that may be urged at the time of hearing." 6. We have heard the arguments of both the sides and also perused the relevant material on record. Grounds No.1 and 7 raised by the assessee in this appeal are general seeking no specific adjudication. AS regards the issue involved in grounds No.2 to 4 relating to the adoption of the net profit rate for estimating the income of the assessee from transport business, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee from transport business is quite fair and reasonable, and upholding the impugned order of the CIT(A) on this issue, we dismiss ground Nos.2 to 4 of the Revenue's appeal. 7. As regards the issue involved in grounds No.5 and 6 relating to the inclusion of incentive and bonus by the learned CIT(A) in the gross transport receipts for the purpose of applying the net profit rate instead of adding the said amounts separately to the total income of the assessee as done by the Assessing Officer, the learned Departmental Representative has submitted that the assessee is generally not required to incur any expenditure for earning the income in the nature of incentive and bonus. He has contended that the amount of incentive ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
