9911796707
TMI Blog2011 (9) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... ising out of order of CIT(A)-XXXVI, Kolkata in Appeal. No. 899/CIT(A)-XXXVI/Kol/Wd.56(3)/09-10 dated 07.02.2011. Assessment was framed by ITO, Ward-56(3), Kolkata u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for Assessment Year 2007-08 vide his order dated 31.12.2009. 2. The only issue in this appeal of revenue is against the order passed by CIT(A) in restrictin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the P L Account. Accordingly, he noted that the difference of transportation income and transportation charges paid is ₹ 28,18,290/- which is only .56%. The assessee was required to explain the reason for low percentage of profit in view of the fact that in the case of transporters, profit margin is 3.98% to 10.55% which is as under: Name of the parties M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 037.14 lakhs compared to last year s gross profit of 1.60% on a turnover of ₹ 873.41 lakhs. The Ld. AR of the appellant though filed a statistic explaining that the appellant had paid higher rate of hire charges and received lesser rate of hire charges per MT compared to the last year but failed to mention under what circumstances the appellant was compelled to do so. This is precisely the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, A,O s decision of application of last year s gross profit ratio on current year s turnover for estimation of profit cannot be considered reasonable. Considering all the issues as discussed above, in my opinion, it would be a fair and honest decision if the profit is estimated at 1% of the transportation charges receipts of ₹ 50,37,14,220/-, equaling to ₹ 50,37,142/-. The A.O. is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hire charges and received lesser rate of hire charges as per load of metric ton as compared to last year. In view of these reasons and also the fact that the books of account were not rejected, find no reason to interfere in the order of CIT(A) and accordingly the same is upheld. Revenue s appeal is dismissed. 5. In the result, appeal of revenue is dismissed. 6. Order is pronounced in open c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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