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TMI Blog2024 (9) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... troversy, otherwise it will lead to nowhere. We, therefore following rule of consistency, direct AO to take profit of Rs. 0.50 per kg for assessment year 2011-12 and Rs. 0.75 per kg for assessment year 2014-2015 as both assessment years are prior to assessment year 2015-2016. Therefore, the ld. Assessing Officer will re-compute the income keeping in mind the consequential relief, if any as prayed in the grounds of appeal. Penalty proceedings u/s 271(1)(c) - furnishing inaccurate particulars of income - In our considered opinion, additions which are mere estimated additions do not attract penalty u/s. 271(1)(c) of the Act and it is not a fit case of levy of penalty. The decision of Sri Saibaba Guest House[ 2021 (8) TMI 1421 - ITAT CHENNAI] w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d payable. 4. The CIT(A) failed to see that the AO in similar reopening cases for other AYs:2011-12, 2012-13 and 2014-15; computed the income at Rs. 0.50/- per kg of broiler chicken purchased for the respective assessment years, but denied when the same was prayed by the appellant for the present AY:2013-14. 5. The CIT(A) ought to have seen that the assessment order does not contain the reason for opting a different method of estimation of income from that of the previous assessments. 6. The CIT(A) erred in computing the income of the appellant, without considering the expenditure and losses incurred by the appellant during the course of business, and the nature of business. 7. Any other ground that may be raised at the time of the hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee for the period from 01.04.2011 to 31.03.2017 (FY 2011-12 to FY 2016-17 e.g. AY 2012-13 to AY 2017- 18). Upon perusal of the ledger for the period 01/04/2012 to 31/03/2013, it was found that the assessee had purchased cull birds amounting to Rs. 3,70,25,571/-, However, the turnover shown in the return of income filed on 27.05.2013 for the AY 2013-14 was only Rs. 37,65,895/- The assessee submitted before the AO, an estimation of income at a rate of 0.50 paise per kg of chicken purchased. This estimation was based on previous assessments conducted by the Assessing Officer, where the net profit from the wholesale business of trading in broiler chicken was determined at the same rate. However, the provided evidence and supporting documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit percentage on the purchase works out to 0.82% (= profit/ turnover in %i.e. 3,03,781/3,70,25,571) which is ridiculously low. No business man would do business by involving considerable capital say 20% of the purchases (Rs. 74,05114) to earn a paltry sum of Rs. 3,03,791/- or 0.82%. It is true that the authorities cannot dictate as to how the assessee has to conduct his business, but the financials which he has submitted in the ITR must be logical and reliable. The principle of res judicata (a thing or matter that has been judicially decided on its merits and cannot be litigated again between the same parties) does not apply to income tax proceedings. It was incumbent upon the assessee to come up clean before AO and substantiate his ave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AR took us to the assessment orders for the assessment years 2011-12, 2012-13 and 2014-2015 which were completed u/s. 143(3) r.w.s. 147 of the Act. The relevant portion of ld. Assessing Officer s order for assessment year 2011-2012 is reproduced as under:- With a view to adopt a correct selling price of the chicken, a letter to the Deputy Director of statistics was issued calling for price details for the financial year 2010-11. In response to this office letter, the Deputy Director (Statistics) vide his letter dated 12/12/2018 submitted chicken live medium retail price on various dates during the financial year 2010-11 which is annexed along with this report. A proposal for completion of assessment dated 18/12/2018 was sent to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.50/- per kg which amounts to Rs. 4,16,725/- (8,33,450 x 0.50). Hence, this income of Rs. 4,16,725/- is added to the total income of the assessee . The aforesaid assessment orders have been accepted by the assessee. 5. Per contra, ld. Departmental Representative supported the orders of the lower authorities and prayed for dismissing the appeal. 6. We have heard the rival submission, perused the orders of lower authorities, paper books and citations referred. We find substance in the submissions of the assessee that a reasonable estimate may be taken seeing the past and subsequent years profits of the assessee. It is true that doctrine of res judicata does not aply to income tax proceedings but rule of consistency should be maintained for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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