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TMI Blog2024 (9) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... red a net profit of Rs. 10,93,391/- i.e., @ 8.24%. For Assessment Year 2017-18, the books of accounts were audited under section 44AB of the Act. Therefore, the figures for Assessment Year 2017-18 are more dependable and can be relied on. Assessee was carrying on the same line of business and was having gross receipts more or less of the same range for the relevant Assessment Year as well as in the Assessment Year 2017-18. Taking into account the expenses incurred for hiring transport of vehicle from others for the assessee s business of transportation of goods, net profit rate of 8.24% declared in the return of income and accepted by the AO for Assessment Year 2017-18 needs to be adopted in this year also. Accordingly, direct the AO to ado ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26AS that the total contract receipts during the relevant year was Rs. 1,05,90,912/-. In response to the notice, assessee filed reply by stating that there was an error in the original return filed by the ITP. It was stated that assessee accepts the mistake that the contract receipts is Rs. 1,05,90,912/- as noted in Form 26AS instead of Rs. 9,50,000/- declared in the return of income. It was further stated that assessee is ready to offer net profit / taxable profit upto 8% of the gross receipts to Rs. 1,05,90,912/. The AO was of the view that the request of the assessee to tax at 8% on the turnover is not reasonable and completed the assessment under section 143(3) of the Act vide Order dated 19.12.2018. In the said Assessment Order, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rs. Rs. 1,05,90,912/-. The AO on the undeclared receipts of Rs. 96,40,912/- estimated the profit @ 30% and made addition of Rs. 28,92,274/-. The appellant has declared the gross profit in his returns. which is tabulated as under: SI.No. AY Gross Turnover in Rs. Net Profit % of profit declared 1 2014-15 92,880 20,000 21.53% 2 2017-18 1,32,55,955 10,93,391 8.24% 3 2018-19 1,62,47,629 12,99,811 8% For the year under consideration, as the assessee himself has declared income @ 6.84% taking into consideration the entire gross receipts of Rs. 1,05,90,910/-. the estimation made by the AO @ 30% on undeclared turnover of Rs. 96,40,912/-appears to be high. especially in the line of hiring of transport vehicle business. Hence it would be justifia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/- (i.e., declared income of Rs. 7,25,000/- + impugned income of Rs. 28,92,274/- being 30% of the undeclared gross receipt of Rs. 96,40,913/-). It is further submitted that NFAC / FAA s Order reducing the net profit rate to 15% which comes to Rs. 14,46,137/- is also on the higher side. 9. I notice that the net profit rate subsequent to the FAA s Order is at 20.5% after taking into consideration the declared income of Rs. 7,25,000/-. It is an admitted fact (which is also noted by the AO) that for Assessment Years 2014-15 and 2018-19 in assessee s case, income was declared on a presumptive basis under section 44AD of the Act (8% of the gross receipts). For Assessment Year 2017- 18, on a gross turnover of Rs. 1,32,55,955/- assessee had declar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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