9911796707
TMI Blog2019 (7) TMI 1674X X X X Extracts X X X X X X X X Extracts X X X X ..... ee against the order of the CIT(A), Cuttack, dated 03.08.2017 for the assessment year 2012-2013, on the following grounds of appeal: 1) For that the order passed by the forum below is ex-facie illegal, excessive, bad in law and as such liable to be quashed in limine. 2) For that on the facts and under the circumstances of the case, the Ld. Forum below is not justified in estimating profit @ 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tutory notices were issued to the assessee. During the course of assessment proceedings, the AO noticed that the assessee has derived income from various sources and balance sheet and profit & loss account were produced but there were no details available as per the business carried on by the assessee in different sectors. The assessee was asked to produce separate balance sheet and profit and los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the books of accounts of the assessee as per Section 145(3) of the Act and framed assessment u/s.143(3) of the Act. The AO applied net profit @7% on the gross receipts of Rs. 40,22,57,024/- excluding other income shown by the assessee of Rs. 11,85,712/- i.e. Rs. 40,10,71,312/-. It was noticed by the AO that the assessee had shown net profit @5.53% before depreciation of gross receipts of Rs. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit @5% of the gross receipt in I.T.Appeal No.141/2014-2015, vide order dated 26.02.2016. Therefore, CIT(A) is not justified to estimate net profit @6.5% in the impugned year under consideration. The ld. AR of the assessee conceded that for the impugned year the net profit rate may be restricted to 6% of the total turnover undertaken during the year by the assessee. 6. On the other hand, ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the acceptance of net profit @5% by the CIT(A) in the immediate preceding assessment year as mentioned above. Looking to the voluminous nature of the business carried on by the assessee and considering the arguments advanced by both the sides, we restrict the net profit to 6% on the gross turnover of the assessee of Rs. 40,10,71,312/- as against 6.5% applied by the CIT(A) on gross receipts. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
