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TMI Blog2021 (1) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, in the interest of justice, the Ld. CIT(Appeals) had applied the rate of 8% as per Section 44AD of the Act to the income of the assessee considering his area of business. Thus, the findings of the Ld. CIT(Appeals) are absolutely reasonable and as per law. Therefore, the same does not call for any interference. Hence, the findings of the Ld. CIT(Appeals) are upheld. - Decided against assessee. - ITA Nos. 1708 to 1711/PUN/2015 - - - Dated:- 12-1-2021 - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER And SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Assessee by : None Revenue by : Shri S.P. Walimbe ORDER PER PARTHA SARATHI CHAUDHURY, JM These four appeals preferred by the assessee emanates from the common ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Assessee did not reply to various notices issued by Assessing Officer whereupon the Assessing Officer had resorted to estimate assessee's income u/s.144 of the Act through best judgment assessment. He has found that in reply to Question No.18 in the statement recorded under section 133A of the Act, the assessee has offered income @10% on the receipts and had stated that taxes would be paid on this amount. The Assessing Officer also noted that books of account were not maintained and audited. Therefore, Assessing Officer has adopted a rate of 10% in all these years and assessed the income accordingly. 4. That in the Appellate Proceedings before the Ld. CIT(Appeals), it was contended by the assessee that the Assessing Officer has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow 8%, he must maintain books of account and get them audited and these conditions, the assessee has to comply with. In the present case, the assessee did not comply with the same. Therefore, the profit below 8% was not accepted by the Ld. CIT(Appeals). On the other hand, he opined that there was no justification for taking the profit rate of 10% on the basis of statement u/s.133A of the Act which has no evidentiary value. The Assessing Officer should have used this statement as a starting point and marshaled further facts from impounded materials to justify the rate of 10%. That in order to balance between the interests of assessee as well as that of Revenue, the Ld. CIT(Appeals) adopted a rate of 8% as per Section 44AD of the Act in conso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... %. That further, the assessee was also not given copy of the statement recorded in the course of survey and neither, the copy of seized materials was provided to the assessee. That similarly, the Ld. CIT(Appeals) has also observed that the figures of income returned by the assessee were also not sacrosanct as his books of accounts were not audited. That as per Section 44AD of the Act, the prescribed rate as a thumb rule in assessee,s line of business is 8% of turnover. In case an assessee claims that his profits are below 8%, he must maintain books of account and get them audited. These exercises were not done by the assessee. 7. Therefore, in the interest of justice, the Ld. CIT(Appeals) had applied the rate of 8% as per Section 44AD of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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