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TMI Blog2022 (6) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... ct with respect to the profit arising to it from the trading of spare parts of the DC motors. AR in support of assessee s claim has also filed the order of the ITAT in the own case of the assessee which is placed on record. However, we note that the learned CIT-A has already allowed the relief to the assessee with respect to the profit arising to it from the trading activities of spare parts by allowing the exemption under section 10A of the Act. Accordingly, we hold that there was no grievance to the assessee with respect to the trading activities as contended in the written submissions. Thus we note that there is no grievance to the assessee with respect to the gross profit estimated by the AO at the rate of 38% of the turnover. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.16,61,725/- ought to have been confirmed. The same needs substantial reduction. 5. Without prejudice, the assessment proceedings are bad in law deserves annulment. 6. Without prejudice, no reasonable opportunity has been given by the Ld. A.O. while completing assessment. The same needs annulment. 7. Without prejudice, no reasonable opportunity has been given by the Ld. CIT(A) while completing appeal proceedings. The same needs annulment. 8. Without prejudice, the assessment is based on the notices which are not served legally and the same being invalid. The assessment needs annulment. 3. The only issue raised by the assessee is that the learned CIT-A erred in estimating the gross profit at 30% of the turnover whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of salary. 5. Based on the above, the AO concluded that the actual profit of the assessee cannot be deduced and therefore he invoked the provisions of section 145(3) of the Act for rejecting the books of accounts. The AO further estimated the gross profit taking the average of last 2 years and the year under consideration which was worked out at 38% of the turnover. Accordingly the gross profit amounting to ₹ 60,28,939.00 was worked out being 38% of the turnover of ₹ 15865628 whereas the assessee declared the gross profit at Rs.27,05,489.00. Accordingly the differential amount of gross profit at Rs.33,23,450.00 (6028939-2705489) was worked out on which exemption to the tune of 50% was allowed. As such the balance amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant was Rs.1,88,25,454/- which was reduced to Rs.1,58,65,628/- as net turnover by the AO for computing the declared Gross Profit Ratio of 17.05%. On this very net turnover he applied the Gross Profit Ratio on 38% to arrive at the addition on account of Gross Profit estimation. Thus the Debit note of Rs.29,59,826/- remained outside the computation of Gross Profit before as well as after the substitution of Gross Profit Ratio. It is pertinent to note that expense of this Debit note has already been claimed by the appellant in its Profit and Loss account and AO has also not disturbed the same. The AO has arrived at the new Gross Profit Rate of 38% by taking average of last 3 years of Gross Profit Ratio including current year Gross Profit Ratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR and perused the materials available on record. On perusal of the grounds of appeal raised by the assessee, we note that the assessee was aggrieved for estimating the gross profit at the rate of 38% of the turnover. But there was no contention raised by the learned counsel for the assessee in the written submission filed him qua the grievance raised in the grounds of appeal. In the written submission the assessee has sought the relief/ exemption under section 10A of the Act with respect to the profit arising to it from the trading of spare parts of the DC motors. The learned AR in support of assessee s claim has also filed the order of the ITAT in the own case of the assessee which is placed on record. However, we note that the learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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