9911796707
TMI Blog2016 (12) TMI 1778X X X X Extracts X X X X X X X X Extracts X X X X ..... vey proceedings were conducted u/s 133A of the Act on 2.8.2011. The assessee maintained books of accounts in computer at the business premises situated at 5A, Industrial Area, Bhagirathpura, Indore. The assessee has surrendered Rs. 5,27,17,556/- on the basis of net profit and Rs. 1,51,27,608/- u/s 40A(3) of the Act. When the assessee filed return of income after one and half month of survey on 30.9.2011 it showed income from b business at Rs. 3,65,38,115/- and additional income surrendered during survey of Rs. 1,51,80,793/- and Rs. 2,42,98,628/-. Thus, the assessee has shown the gross total income of Rs. 7,60,17,536/-. On perusal of profit and loss account for the year ended on 31st March, 2011 it was noticed that the assessee has shown rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on reasonable and specific grounds yet while estimating the profits, has not brought on record any material and basis to enhance the profit by 2% on the total receipts minus receipts from Mumbai. The contention of the appellant has been found reasonable to the extent that during the year under consideration the net profit has been shown at 5.14% as against 4.84% stated by the A.O. in the assessment order. The net profit for the A.Y. 09-10 and A.Y. 10-11 has been shown at 5.28% and 5.75% respectively. Therefore, if the 2% increased is considered, the net profit for the relevant assessment year with go upto 7.14% which is much higher than the average net profit in the above mentioned assessment years. In my considered opinion, the estimation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have considered the submissions of both the sides. We find that the net profit for the A.Y. 09-10 and A.Y. 10-11 has been shown by the assessee at 5.28% and 5.75% respectively. Therefore, if 2% increase is considered, the net profit for the relevant assessment year with go upto 7.14% which is much higher than the average net profit in the above mentioned 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 vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
