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TMI Blog2024 (11) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) to 25% on his own without bringing on record any notice for enhancement as required under section 251(2) of the Act and thus such action is unsustainable and hence quashed to the extent of increase in the rate of gross profit. Accordingly, we uphold the order passed by the AO whereby he has estimated profit @ 8%. Since no other ground except than that of enhancement is taken before us, it is not required to comment on the reasonableness of estimation or any other addition perpetrated by the AO. Thus, all the grounds raised by the assessee are allowed. - Shri V. Durga Rao, Judicial Member And Shri K.M. Roy, Accountant, Member For the Assessee : None For the Revenue : Shri Sandipkumar Salunke ORDER PER K.M. ROY, A.M. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd served on the assessee. The assessee had filed his return of income for the assessment year 2017-18 under section 139(1) of the Act on 20/03/2018, declaring total income at ₹ 13,21,270. In response to the notice issued under section 153C of the Act, the assessee further filed his return of income on 18/07/2021, declaring total income at ₹ 13,21,270. During the survey at the premises of office of Narayana Educational Society credit note regarding purchase of books amounting to ₹ 11,79,866, was detected. The assessee had not disclosed the income earned on the above purchases and therefore, the gross profit @ 8% was applied by the Assessing Officer as profit earned on the above purchases and accordingly an amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, was of the opinion that the gross profit @ 8% is on the lower side considering nature of business transactions. Hence, considering the facts circumstances and the submissions of the assessee, the learned CIT(A) ultimately directed the Assessing Officer to assess gross profit @ 25% on undisclosed turnover and dismissed the appeal filed by the assessee. In effect, there was an enhancement of assessment by estimating higher amount of gross profit under section 251(1)(a) of the Act. 6. There was no representation from the side of the appellant. Since the facts lie in a narrow compass, with the able assistance of the learned Departmental Representative on our own, the issues are being delved into. We find that the Assessing Officer est ..... X X X X Extracts X X X X X X X X Extracts X X X X
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