9911796707
TMI Blog2024 (6) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 63,27,044/-, as contended by the assessee, and also in the absence of any books of account and bills vouchers etc., for verification to substantiate the cash deposits, taking into account the earlier years disclosure of gross profit by the assessee, the Ld. AO estimated the income of the assessee @8% and on appeal the Ld. CIT(A)-NFAC has granted considerable relief to the assessee by directing the Ld. AO to estimate the GP @ 6%. No hesitation to come to a conclusion that there is no infirmity in the order of the Ld. CIT(A)-NFAC and it does not call for any interference. Accordingly, the grounds raised by the assessee are dismissed. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Bank, Narasannapeta u/s. 133(6) of the Act. Subsequently, the Ld. AO issued summon u/s. 131 of the Act, dated 4/9/2019 and in response, during the course of sworn statement, the assessee submitted that the assessee-firm has closed its business and stated that the evidence for cash deposits would be submitted before the Ld. AO by 13/09/2019. However, the assessee failed to do so, and did not produce the books of account and bills and vouchers etc. In the absence of any verifiable evidence / documents substantiating the cash deposits in the assessee s bank account during the FY 2016-17, the Ld. AO completed the assessment u/s. 144 of the Act based on the material available on record. Accordingly, the Ld. AO taking into account the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upholding the action of the AO in treating the entire deposits of Rs. 6,87,17,587/- in the bank account as turnover of the appellant as against actual turnover of Rs. 6,23,90,543/-. 3. The Ld. CIT(A) is not justified in directing the Ld. AO to estimate the gross profit @ 6% of the turnover which is on higher side. 4. Any other ground may be urged at the time of hearing. 4. At the outset, it is the submission of the Ld. Authorized Representative [AR] that while estimating the income of the assessee, the Ld. Revenue Authorities ignored the fact that all the credits in the bank account of the assessee are not the turnover of the assessee-firm. He further submitted that as per the VAT returns of the assessee, the total sale without VAT during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material available on record as well as the orders of the Ld. Revenue Authorities. For the AY under consideration, the assessee has not filed its return of income. During the assessment proceedings for the AY 2017-18, the Ld. AO observed that the assessee has made substantial cash deposits in its Corporation Bank, Narasannapeta Branch. From the assessment order, it is apparent that the assessee has not responded to any of the notices issued / turned out until the summon u/s. 131 was issued by the Ld. AO. While giving reply to the summon, the assessee made a sworn statement before the Ld. AO and stated that it would produce all verifiable evidence for cash deposits by 13/9/2013 but did not happen. Furthermore, the assessee has not even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to establish its lower GP rate in the earlier AYs as well as in the AY under consideration. Considering all the facts and circumstances as well as the material available before him, the Ld. CIT(A)-NFAC has directed the Ld. AO to estimate the gross profit @ 6% against @ 8% made by the Ld. AO by observing (at Page 9 of the CIT(A)-NFAC s order) as under: The appellant has itself disclosed gross profit @ 4.6% and 4.7% in AY 2015-16 and AY 2016-17. However, it may be noted that these income tax returns were not subject to scrutiny and therefore, its authenticity has not been established. Since the appellant has not been able to justify with documentary evidence its actual profits, it would be deemed fit to estimate the gross profit at the rat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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