9911796707
TMI Blog2024 (7) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has himself claimed the profit at 20.58% during the year under consideration and 18.80% in the subsequent years and has suppressed the turnover which was detected by the AO, the assessee cannot be allowed to aprobate and reprobate in the face of admitted fact that the assessee has himself admitted turnover of Rs. 72,50,000/- during the year under consideration. So the Ld. CIT(A) has rightly confirmed the profit percentage of 20% for the year under consideration made by the AO. Decided against assessee. - SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER For the Appellant : Shri Devendra Jain, A.R. For the Respondent : Shri Ajay Singh, Sr. D.R. ORDER Per : Kuldip Singh, Judicial Member: 1. At the very o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beyond the control of the assessee viz. due to death of his real brother and due to marriage ceremony of son of the legal practitioner namely Shri Bhanaram Choudhary engaged by the assessee, the appeal could not be filed, which we find a sufficient cause to condone the delay in view of the settled principle of law laid down by the Hon ble Supreme Court in case of Land Acquisition Collector vs. MST Katiji Others 167 ITR 471 (SC) wherein the Hon ble Supreme Court has held that it is on contention of delay that when substantial justice and technical considerations are pitted against each other, the case of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1,62,660/- and revised return for Rs. 2,38,130/- was subjected to scrutiny the Assessing Officer (AO) who has noticed that the assessee has shown turnover of Rs. 14,69,895/- and declared the income of Rs. 3,02,525/-. From the perusal of the bank statement of current account No.CAPUB/50 of the assessee maintained with Saraswat Co-operative Bank Ltd. it was noticed by the AO that the assessee has deposited total cash amount of Rs. 26,99,300/- during the year under consideration. From the perusal of the bank statement of saving bank account maintained with Saraswat Co-operative Bank Ltd. the AO further noticed that during the period under consideration assessee had deposited Rs. 21,70,400/- which was regarding payment to various parties by c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession . 10.1. Hence, it is evidently clear that section 44AD does not states that only 8% profit is to be declared, but mentions that any sum higher than eight percent of the total turnover may be treated as profit, which has been declared @ 20% by the assessee himself while filing the return of income. Hence, profit @ 20% is found to be totally justified, on suppressed turnover of Rs. 57,80,125/- (72,50,000 14,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined with reference to the records available. First of all, the provisions of section 44AD does not put a ceiling of 8% rather 8% is the minimum of profit to be declared in case an assessee choose to adopt profit as per the provisions of section 44AD. The section provides that the income has to be declared at a higher percentage if the actual income is more then 8%. In the case of the appellant, he opted for declaring profit as per the provisions of section 44AD but the percentage of profit declared by him in his original return as well as in the revised return was near to 20% of the gross receipts. The AO while estimating the income on the suppressed gross receipts has also considered the percentage of profit declared by the appellant in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the year under consideration. It is also not in dispute that apart from the suppressed sale the assessee shown 20% profit element on the claimed turnover of Rs. 2,38,130/- during the year under consideration. It is also not in dispute that during the year and preceding years the assessee has consistently earned the profit @ 17.36% to 20.58% as shown in the table in para 7.4 of the impugned order passed by the Ld. CIT(A). 10. In the backdrop of the aforesaid undisputed facts the Ld. A.R. for the assessee contended that since the assessee is not maintaining books of accounts his profit on the admitted turnover of Rs. 72,50,000/- at the rate of 8% under section 44AD may be estimated. 11. We are of the considered view that when the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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