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TMI Blog2022 (11) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed in the hands of the assessee. Thus ground partly allowed. Addition being made for excess wastage of bricks shown by the assessee - HELD THAT:- We find that the assessee gave complete production details of the manufacturing of bricks before ld. AO and against the total consumption of 1,29,845 Cubic Feet of soil purchased from West Bengal Government, the assessee manufactured a saleable quantity of 6,18,000 pieces of bricks. AO has only referred to the excess wastage as suppressed sales. However, looking to the consistency of the business carried out by the assessee in the past and the financial statements being audited and accepted by the Revenue authorities, we, in order to bring the end to the controversy and being fair to both the parties estimate a net profit of 8% on the gross turnover of M/s. Maa Bricks Field shown and compute the profit and after deducting the profit offered by the assessee in the profit loss account the remaining amount is the income confirmed in the hands of the assessee. Assessee gets relief of Rs. 7,99,477/-. Thus, ground of the assessee s appeal is partly allowed. - I.T.A. No.: 969/Kol/2017 - - - Dated:- 11-11-2022 - Sh. Sanjay Garg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee declared income of Rs. 41,01,170/- in the return of income filed on 12.10.2010 for AY 2010-11. After the case being selected for scrutiny followed by serving of notices u/s 143(2) 142(1) of the Act. Ld. AO called for various details from the assessee about the two sole proprietorship concerns. Part of the details were filed but for lack of proper submissions, ld. AO estimated the profit from the contractual activity at 30% of the contract value of Rs. 1,61,65,022/- and calculated it at Rs. 48,49,506/-. Ld. AO also made the addition for undisclosed income of C F commission at Rs. 63,30,042/-, unaccounted rent income from Lafarge India Pvt. Ltd. at Rs. 5,31,743/- and interest income from Lafarge India Pvt. Ltd. at Rs. 1,76,198/-. Similarly, ld. AO also made addition for supressed sales of bricks at Rs. 17,37,648/-. Income assessed at Rs. 1,47,65,772/- and assessment was completed u/s 143(3) r.w.s. 144 of the Act. 4. Aggrieved, the assessee preferred appeal before ld. CIT(A) and partly succeeded, however, most of the additions confirmed by ld. AO were further confirmed by ld. CIT(A). 5. Aggrieved assessee is now in appeal before this Tribunal raising various grounds o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment has been framed and thus, the assessment order cannot be said to be bad in law. Thus, ground nos. 1, 2 3 are dismissed. 10. As regards ground nos. 4, 5 6 of the assessee s appeal are concerned they relate to the addition made on various counts including estimation of interest income, estimation of C F commission @ 50% and then estimation of profit on the sales made during the year under the business carried out in the name of M/s. Chakraborty Enterprise. We observe that the assessee is regularly maintaining the books of account in the past and copies of audited profit loss account for FYs 2006-07, 2007-08 and 2008-09 are placed on record. So far as the details for AY 2010-11 is concerned though the assessee could not furnish the books of account nor could file the audited financial statement but certain other details are furnished which includes the statement of net profit ratio for the year under appeal and the preceding three years, copy of VAT returns for the FY 2009-10 and also statement of income and expenditure of M/s. Chakraborty Enterprise which is prepared taking the basis of the receipts shown as per Form no. 26AS which shows the receipts during the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.61% net profit on the gross receipts which is higher than the net profit rate offered in the past and also observing that the net profit rate adopted by ld. AO 46.62% is much higher and that too for the reason that the assessee could not produce books of accounts and audited report since they were lost and the assessee could not find the copy of the same, the assessee will be hit hard if the net profit rate of 46.62% is applied on the assessee. Looking to the consistency of the business, C F charges and commission income being received from limited company and the receipts are duly accounted for in Form no. 26AS and they are also getting reflected in the bank statement and there being no other business carried out under the name of M/s. Chakraborty Enterprise which remained undisclosed and simultaneously also considering the fact that both the lower authorities could not examine the correctness of the assessee s income for the year due to lack of evidences and necessary details, we, in order to put an end to the controversy and in the interest of justice and being fair to both the parties, hold to apply net profit rate of 14% on the total turnover of M/s. Chakraborty Enterpri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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