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TMI Blog2018 (1) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... i D.K. Chhabra ORDER This appeal under Section 260-A of the Income Tax Act, 1961 (herein after referred to as "the Act") has been filed by the appellant - Department against order dated 15.12.2016 (Annexure 'C'), passed by the learned Income Tax Appellate Tribunal, Indore Bench, Indore in Income Tax Appeal No.509/Indore/2016 and Income Tax Appeal No.672/Indore/2016 for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as selected for compulsory scrutiny under Section 143 (2) of the Act and accordingly notice was issued on 05.09.2012, which was duly served on the assessee on 06.09.2012. Subsequently, notice under Section 142 (1) of the Act and query letters were issued from time to time. Authorized representative of the assessee appeared before the Assessing Officer and filed written submission. The assessee sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal filed by the assessee in part and directed the Assessing Officer to recompute the profits by increasing the same at the rate of 1% as against 2% applied in the assessment order. In the appeal filed by the Department, the learned Income Tax Appellate Tribunal, considering the fact that in Assessment Years 2006-07, 2007-08, 2008-09, 2009- 10 and 2010-11, the net profit ratio comes to 4.88%, 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned assessment years. We are, therefore, of the opinion that the estimation of profits by the A.O. has not been found based on some cogent and relevant material. Therefore, the learned CIT (A) was reasonable in increasing the profit by 1% which will take the net profit for the relevant year at 6.14% which will still be much higher than 5.5%, the average of two preceding assessment years. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer to levy assessment on the basis of best judgment is not an arbitrary power; it is an assessment on the basis of best judgment. Therefore, the Tribunal was in error in confirming the decision of the Commissioner of Income Tax (Appeal). 6. No case to interfere with impugned order dated 15.12.2016 (Annexure 'C') passed by the learned Appellate Tribunal, as prayed for, is made out; nor a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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