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TMI Blog2023 (10) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO - excess amount [Profit estimation] as wrongly adopted by the Learned Assessing Officer in the computation sheet - HELD THAT:- It is undisputed fact that profit is estimated @8% on gross receipts of Rs. 3,60,84,530/- which comes to Rs. 28,86,760/-, but an amount of Rs. 29,68,705/- was taken wrongly by the AO in the computation. Hence,direct the AO to adopt the correct amount of Rs. 28,86,760/- instead of Rs. 29,68,705/- in the computation and pass order accordingly. Accordingly, the ground raised by the assessee is allowed. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member For the Appellant : None For the Respondent : Shri Madhukar Aves, DR ORDER PER SHRI DUVVURU RL REDDY, JUDICIAL MEMBER : Condonation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case are that the assessee filed his return of income for the A.Y.2017-18 on 31.03.2018, declaring total income of Rs. 3,59,610/-. The return was selected for limited scrutiny under CASS to verify cash withdrawals. Accordingly, notices u/s 143(2) and 142(1) were issued and served on the assessee. During the course of scrutiny proceedings, the Assessing Officer(AO) observed that the assessee is doing business of buying bananas from farmers and selling them to traders. The assessee claimed before the AO that some traders transfer the amounts to his account, while some other traders deposit the amounts in his bank account. The assessee further claimed that he withdraws the cash from his bank accounts and makes payments to the farmers for ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in upholding the addition of Rs. 25,27,150/- made by the Learned Assessing Officer towards the estimated profit from the business. The Learned Assessing Officer is unjustified in estimating the profit at much higher side i.e.@8% on total gross receipts without any basis. The Learned Assessing Officer ought to have accepted the income returned by the appellant. 3. The CIT(A) is unjustified in upholding the income assessed by the Learned Assessing Officer at Rs. 29,68,705/-. In the assessment order issued by the Learned Assessing Officer, it is mentioned that Profit is estimated @8% on total receipts of Rs. 3,60,84,530/- which comes to Rs. 28,86,760/-. Whereas in the computation sheet issued along with the assessment order, the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hesitation to come to the conclusion that 8% of gross receipts is reasonable and therefore dismiss the ground raised by the assessee. 9. Ground No.3 is related to wrong assessment of income by the AO. The assessee contended that in the assessment issued by the Ld.AO, it is mentioned that profit is estimated @8% on total receipts of Rs. 3,60,84,530/- which comes to Rs. 28,86,760/-, whereas, in the computation sheet issued along with the assessment order, the profit from the business is wrongly taken as Rs. 29,68,705/-. Thus, an excess amount of Rs. 81,950/- (Rs. 29,68,705 Rs. 28,86,760) was wrongly adopted by the Learned Assessing Officer in the computation sheet. 10. The Ld.DR has not disputed the above fact. 11. I have heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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