High Court allows appeal on delay, dismisses appeal on Net Profit Percentage reduction. No substantial question of law found.

The High Court allowed the appeal by condoning the delay in filing it under Section 260A of the Income Tax Act, 1961. However, the appeal was dismissed regarding the reduction of Net Profit Percentage from 8% to 0.6% by the Income Tax Appellate Tribunal. The Court found no substantial question of law, noting the consistency in the assessee's Net Profit percentages in previous years and the absence of errors in the audited accounts. Consequently, the High Court upheld the Tribunal's decision on the Net Profit Percentage issue, leading to the dismissal of the appeal.

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Issues:
1. Condoning delay in filing the appeal.
2. Reduction of Net Profit Percentage from 8% to 0.6% by the Income Tax Appellate Tribunal.

Condoning Delay in Filing the Appeal:
The High Court considered the affidavit filed in support of the petition and found sufficient cause for not being able to prefer the appeal within the period of limitation. The delay in filing the appeal was condoned, and the petition was allowed. The appeal was filed under Section 260A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal relating to the Assessment Year 2012-2013.

Reduction of Net Profit Percentage:
The revenue raised a substantial question of law regarding the reduction of Net Profit Percentage from 8% to 0.6% by the Income Tax Appellate Tribunal. The Court analyzed whether the Net Profit arrived at by the Tribunal at 0.6% was just and proper. It was noted that the Tribunal considered the Net Profit declared by the assessee for previous assessment years, which ranged from 0.2% to 0.29%, and even in scrutiny proceedings, Net Profit was estimated below one percent. The Tribunal found that there was no change in the business over the years, the books of accounts were duly audited, and no errors were pointed out. Consequently, the Court held that the matter was factually correct, and no substantial question of law arose for consideration. Therefore, the appeal was dismissed.

Overall, the High Court's judgment involved condoning the delay in filing the appeal and addressing the issue of the reduction of Net Profit Percentage by the Income Tax Appellate Tribunal, ultimately dismissing the appeal based on factual correctness and absence of substantial legal questions.

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