9911796707
TMI Blog2018 (9) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... lume of gross receipts and the audit reports filed by the assessee before the AO. The Authorities below, therefore, were also not justified to apply the profit rate of 8% in view of section 44AD without examining the previous and subsequent history of the appellant and without referring to any comparable case in the line of assessee’s business. Best judgment assessment should not be based on simple presumption, but should have a reasonable basis, as held in several decisions - restore the matter back to the file of Assessing Officer for passing the assessment order de-novo after giving one more opportunity to the assessee of being heard - Appeal is allowed for statistical purposes. - ITA No. 1330/Del/2015 - - - Dated:- 4-9-2018 - Shri Bh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances of the case and in law, both Ld AO and learned CIT-A erred in separately assessing the business (interest) income already offered to taxation as income from other sources which is not supported by applicable legal provisions. 2. The brief facts of the case are that the assessee is a contractor and filed its return of income on 28.09.2010 declaring income of ₹ 51,09,000/- out of total receipts of ₹ 11,97,88,637/- at the profit rate of 4.26%. In the assessment proceedings, the AO gave more than sufficient opportunities to the assessee to furnish the requisite details, but the assessee failed either to furnish the requisite details or to produce any books of account before the AO. The details of opportunities gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished before the AO and therefore, the Authorities below were not justified to apply the provisions of section 44AD of the Act. It was submitted that the authorities below have erred in justifying the profit rate of 8% ignoring the fact that in assessment year 2013-14, the Assessing Officer itself has assessed the profit of the assessee by applying the profit rate of 4.25% of the gross receipts of assessee. It was submitted that no comparable case has been cited by any of the authorities below. It was also submitted that the interest income shown in the credit side of profit and loss account was the business income of the assessee which has wrongly been treated as income from other sources. 5. On the other hand, the ld. DR relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in view the volume of gross receipts and the audit reports filed by the assessee before the AO. The Authorities below, therefore, were also not justified to apply the profit rate of 8% in view of section 44AD without examining the previous and subsequent history of the appellant and without referring to any comparable case in the line of assessee s business. As a matter of fact, the best judgment assessment should not be based on simple presumption, but should have a reasonable basis, as held in several decisions. In the totality of facts and circumstances narrated above, we think it appropriate in the interest of justice to restore the matter back to the file of Assessing Officer for passing the assessment order de novo after giving one ..... X X X X Extracts X X X X X X X X Extracts X X X X
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