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TMI Blog2021 (4) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... d considering the fact that net profit rate from A.Y. 2007-08 to 2009-10 varied from 4.26% to 5.94% and the net profit rate for the current year was shown at 1.84%, estimation of net profit rate of 4.5% under the facts and circumstances of the case will meet the ends of justice. Accordingly, the order of the CIT(A) is modified and the AO is directed to adopt the net profit rate of 4.5% on the turnover of ₹ 14,85,42,058/- as the net income of the assessee. The grounds raised by the Revenue are accordingly partly allowed. - ITA No.2506/Del/2017 - - - Dated:- 8-4-2021 - Shri R.K. Panda, Accountant Member And Ms Suchitra Kamble, Judicial Member For the Assessee : Shri Abhimanyu Jhamba, Advocate For the Revenue : Shri Jagdish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee were not relevant for the verification of the expenses and that in the absence of proper documents the claim of various expenses debited in the Profit Loss Account remained unverifiable. However, the ld.CIT(A) accepted the additional evidences and, thereafter, accepted the offer of the assessee of additional income of 1% of the turnover in order to buy peace and to avoid future litigation. He accordingly directed the AO to make a further addition of 1% to the total turnover of ₹ 14,85,42,058/- which comes to ₹ 14,85,421/- to the returned income. Thus, the ld.CIT(A) sustained an addition of ₹ 14,85,421/- as against ₹ 2,22,81,308/- made by the AO. 4. Aggrieved with such order of the CIT(A), the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO at ₹ 2,22,81,308/-. Referring to para 2.11.4 of the order of the CIT(A), he submitted that the net profit before tax shown by the assessee for A.Y. 2007-08 was 4.26%, for A.Y. 2008-09 - 5.24%, and for A.Y. 2009-10, it was 5.94%. Therefore, it is not understood as to on what basis the ld.CIT(A) has arrived at the profit rate of 2.84%, i.e., 1.14% declared by the assessee and further addition of 1% as per his direction. He submitted that the ld.CIT(A) has not properly adjudicated the issue and the assessee was non-cooperative at the assessment stage and, therefore, the order of the CIT(A) be reversed and that of the order of the AO be restored or the matter may be set aside to the file of the AO for fresh adjudication. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Assessing Officer and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find, the assessee in the instant case, did not file the requisite details before the AO for which the AO held that the genuineness of the claim made in the P L Account and the correctness of the income as computed by the assessee remained unsubstantiated. He, therefore, rejected the book results and estimated the profit at 15% of gross receipt at ₹ 14,85,42,058/- and, accordingly, determined the total income at ₹ 2,22,81,308/- as against the returned income of ₹ 27,60,390/-. We find, the ld.CIT(A), on the basis of the offer given by the assessee to buy peace and to avo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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