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TMI Blog2024 (8) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... ted and was not considered by the CIT(A). AR submitted that the assessee in the F.Y. 2015-16 was engaged in the business of wholesale food items and therefore the profit margin based on the Turnover/volume will be lower and the AO comparing with the net profit rate of earlier years, where the assessee was engaged in the retail trade and the profit margin differs. AR submitted that the assessee has a good case on merits and shall substantiate with material evidences that the assessee s wholesale business profit margin is between 2% to 3%. Therefore, we considering the facts, circumstances and the principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and infor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts filed, nor rejecting the books of account. c) During the AY 2013-14, AY 2014-15 and AY 2015-16, the assessee was engaged in different nature of business. During the impugned year, the assessee was engaged in trading of corn where turnover is high and profit margin are low. Thus NPR of earlier year are not comparable. The appellant therefore prays that addition of Rs. 37,19,741/- may please be deleted. GROUND III On the facts and circumstances of the case, and in Law, CIT(A) NFAC erred in disallowing Rs. 2,00,000/- u/s 24(b) of the Act On the facts and circumstances of the case and in law the CITA failed to appreciate the fact that:- a) AO did not allow assessee s claim of deduction u/s 24(b) without making any express disallowance in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notices issued nor any information was filed with corroborative evidence. Therefore the AO based on the information available on record has dealt on the facts of earning of net profit for the A.Y 2013-14, A.Y 201415 A.Y 2015-16 and observed that the net profit range is between 8.44% to 11.65% and computed average net profit percentage of three years which works out to @9.39%. Finally the A.O has computed business income @ 9.39% on the turnover of Rs. 3,96,13,850/- which works out to Rs. 37,19,741/- and assessed the total income of Rs. 52,19,740/- and passed the order u/sec 147 r.w.s 144 r.w.s 144B of the Act dated 23.09.2021. 3. Aggrieved by the order the assessee has filed an appeal before the CIT(A), where the CIT(A) considered the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO overlooking the submissions made by the assessee in lieu of the notice issued on 06.04.2024 to file the reply on or before 12.04.2024. The Ld.AR has demonstrated the information and details filed before the CIT(A) on 12.04.2024, which is not disputed and was not considered by the CIT(A). Further the Ld.AR submitted that the assessee in the F.Y. 2015-16 was engaged in the business of wholesale food items and therefore the profit margin based on the Turnover/volume will be lower and the AO comparing with the net profit rate of earlier years, where the assessee was engaged in the retail trade and the profit margin differs. The Ld.AR submitted that the assessee has a good case on merits and shall substantiate with material evidences t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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