9911796707
TMI Blog2021 (8) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and in law. Therefore, the income declared based on closed books of accounts should have been accepted in the facts and circumstances of the case. 2. That in any view of the matter the additions of Rs. 2,92,147/- in Singh Transports as made by the Assessing Officer and confirmed by the Ld. CIT(A) by applying Net Profit Rate of 4.5% as against the Net Profit Rate of 3.96% disclosed by the assessee is highly unjustified. 3. That in any view of the matter the additions of Rs. 2,50,907/- in Singh Traders as made by the Assessing Officer and confirmed by the Ld. CIT(A) by applying Net Profit Rate of 1% as against the Net Profit Rate of 0.13% disclosed by the assessee is highly unjustified. 4. That in any view of the matter the findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted. 4. On the other hand, the learned DR has submitted that the higher amount of depreciation considered by the Assessing Officer has resulted the higher rate of net profit declared by the assessee before depreciation and therefore, the said mistake of the Assessing Officer is not prejudicial to the interest of the assessee. He has pointed out that if the correct amount of depreciation is taken into consideration then the net profit declared by the assessee would come at a lower rate than considered by the Assessing Officer. He has relied upon the orders of the authorities below. 5. I have considered the rival submissions as well as the relevant materials available on record. The Assessing Officer rejected the books of accounts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which are not in dispute are as under:- SINGH TRANSPORT AGENCY A.Y. RECEIPTS SHOWN NET PROFIT NP RATE 09-10 2,08,35,640 3,12,597 1.52% 10-11 2,82,81,064 4,23,316 1.49% 11-12 8,44,29,722 8,65,990 1.02% 12-13 7,68,88,281 9,22,659 1.20% 7. Once the net profit declared by the assessee in the preceding year is available and is accepted by the Revenue then the estimation of the income ignoring the past history or any other reasonable basis on the part of the Assessing Officer is not justified. The Assessing Officer has adopted net profit rate of 4.5% but has not given any basis much less of reasonable ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f bricks, purchase of sand and transport work. The Assessing Officer then pick up the purchase and sale of brick activity and estimated the profit by applying net profit rate of 1% on the sale amount. Hence, the Assessing Officer has made an addition of Rs. 2,50,907/- to the profit declared by the assessee of Rs. 65,275/-. The assessee challenged the amount of the Assessing Officer before the CIT(A) but not succeeded. 9. Before the Tribunal, the learned AR of the assessee has submitted that the assessee has explained the reasons for low profit in the business of purchase and sale of bricks and sands due to the reason that the tender of sand was awarded to sand mafia and therefore, the assessee had to purchase the sand at an exorbitant rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even the amount received for transport work has also not generated any profit then this explanation of the assessee cannot be accepted for doing the trading activity of bricks and sand without any income. It is pertinent to note that after rejection of books of accounts the income of the assessee was required to be estimated on some reasonable basis. The assessee has also not brought on record any past history of net profit declared by the assessee as well as any comparable rate to contradict the net profit rate applied by the Assessing Officer at 1%. Accordingly, in the facts and circumstances of the case, when the assessee has not produced any material or facts to dispute the reasonableness of the net profit applied by the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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