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TMI Blog2023 (10) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... controverted by the revenue authorities. So far as the year under consideration is concerned, we notice that better net profit rate i.e. 0.49% has been declared. As per judicial precedence, normally average of 3 years profit rate / gross profit rate is adopted to estimate the income. However, since the assessee did not appear before the lower authorities, we estimate the net profit @ 0.50% and applying the same on the turnover of the assessee, the net profit will amount to Rs. 10,83,808/- and accordingly, the income shall be calculated and remaining addition stands deleted. Thus, ground no. 6 7 are partly allowed. Addition of interest income - As we notice that the said interest income is duly disclosed in the books of account an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Memo of Appeal. 5. For that the Ld. CIT (A) is bad in law since the order passed is not any speaking order nor the CIT(A) has looked into the assessment records and relevant materials to conclude that the order of the ld. AO cannot be interfered with. 6. For that the ld. CIT(A) erred in affirming the action of ld. AO in determining the net profit of the appellant on estimate basis at 8% of the net turnover without rejecting books of accounts of assessee. 7. For that even otherwise, the net profit rate applied by the ld. Assessing Officer is arbitrary and excessive. 8. For that the ld. CIT(A) erred in affirming the action of ld. AO in making addition of Rs. 1,55,791/- as interest income in spite of the fact that ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied with the above order, the assessee preferred an appeal before the ld. CIT(A) where the appeal filed by the assessee was dismissed. 4. Aggrieved by the above order, assessee preferred the appeal before the Tribunal raising multiple grounds of appeal. However, going through the same we notice that the core issue in the appeal involved in ground no. 6 by which the ld. AO determining the net profit of the assessee on estimated basis @ 8% on the net turnover without rejecting its books of account filed by the assessee. Therefore, we are going to adjudicate the instant issue. 5. At the time of hearing, ld. counsel for the assessee contended that addition made by the AO on estimated basis @ 8% on turnover of Rs. 21,67,61,571/- is not sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities in the past from setting aside the issue on merits to the lower authority and decided to adjudicate here itself. We find that the assessee is a partnership firm engaged in the business of trading in jute, fertilizers, seeds etc. In the preceding past two financial years, net profit declared was 0.22% and 0.19% arrived at after claiming of incidental expenses including the interest in remuneration paid to partners. The preceding two financial years are on the basis of audited financial statement and the same has not been controverted by the revenue authorities. So far as the year under consideration is concerned, we notice that better net profit rate i.e. 0.49% has been declared. As per judicial precedence, normally average of 3 years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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