9911796707
TMI Blog2024 (12) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the claim of the assessee that the net profit rate @ 0.59% was the actual profit earned by the assessee during the year under consideration is not verifiable. Also considered the prayer of the Ld. A.R. that direction may be given to complete the assessment by applying the net profit rate of 1% and the prayer of the Ld. Sr. D.R. that the file may be restored to the office of the AO. However, find that in the absence of comparative data, even the rate of 1% remains unverifiable and no useful purpose will also be served by setting aside the file to the office of the AO. Interest of justice would be served, if the net profit of 2% of the gross sales is applied. We direct the AO to complete the assessment and compute the tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit @8% on the turnover, which came to Rs. 32,43,137/-, and added the same to the income of the assessee. The AO, accordingly, completed the assessment under section 144 of the Act, assessing the total income of the assessee at Rs. 32,43,140/-. 3. The AO also initiated penalty proceedings under sections 270A, 272A(1)(d) and 271F of the Act. 4. Aggrieved, the assessee preferred an appeal before the Ld. First Appellate Authority. The appeal was migrated to NFAC, who estimated the profit margin @4% as against 8% estimated by the AO, by holding that the profit margin of 8% taken by the AO seemed to be on the higher side and that the profit margin of 4% was reasonable and possible in the business of sale of SIM Cards and Recharge Coupons. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t deliberate and was beyond the control of the assessee and therefore, the same may be condoned and the appeal be heard on merits. 7. The ld. D.R. had no objection to the delay being condoned. 8. In view of the prayer made by the Assessee, duly supported by Affidavit and no objection by the ld. Sr. D.R., I condone the delay in filing of the appeal and admit the appeal for hearing. 9. The Ld. A.R. submitted that the assessee is in the business of selling SIM Cards and Recharge Coupons of Airtel and although the return of income and Audited Balance Sheet and Profit and Loss Account were uploaded quite late, the assessee has earned net profit of 0.59% only, whereas the AO had estimated the same @8% and the NFAC had scaled it down to 4%. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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