TaxTMI 
TaxTMI 
2013 (11) TMI 124
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.... of income under section 139(1), a notice under section 142(1) was issued on December 10, 2004 and served on December 16, 2004 calling for the return. In response thereto the assessee had filed its return of income on January 28, 2005 admitting total income at Rs. 68,614. Thereafter, notice under section 148 was issued on November 22, 2006 and the same was served on November 24, 2006, to which the assessee did not respond. Subsequently, a notice under section 142(1) was issued and served on November 6, 2007 requiring the products of books, documents, etc. Since there was no compliance, another opportunity was afforded. The partner, Mr. Sanjay Kumar Bopay, attended on December 19, 2007 requesting for time until December 28, 2007. The Assessi....
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....ciation, at 8 percent of the turnover of Rs. 32,65,486, which worked out to Rs. 2,61,238. On further appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer for initiating proceedings under section 147. With respect to the estimation of net income at 8 percent of the sales by the Assessing Officer, the authorised representative for the assessee submitted before the Commissioner of Income-tax (Appeals) that the Assessing Officer is not justified in estimating the net income from trading activity at 8 percent When the books are not available, the provisions of section 44AF apply and according to the said provisions, the income would be 5 percent of the....
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....not applicable. It was pointed out by the Commissioner of Income-tax (Appeals) that the assessee in his return of income has neither enclosed the profit and loss account nor any balance sheet or any other statement of accounts. Neither during the assessment proceedings, nor during the appellate proceedings, any information regarding sales, purchases or expenses was provided by the assessee and, hence, there was no option with the Assessing Officer, but to estimate the net profit of the assessee. The Commissioner of Income-tax (Appeals) concurred with the Assessing Officer that the assessee has randomly estimated its net profit at 6 percent of the turnover and also claimed further deductions without providing any proof for the same and confi....
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....ified in clause (b) of section 40. (3) The written down value of any asset used for the purpose of the business referred to in sub-section (1) shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years. (4) The provisions of sections 44AA and 44AB shall not apply in so far as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the total turnover or, as the case may be, the income from the said business shall be excluded. (5) Notwithstanding anything contained in the foregoing provisions of this section, an assessee may claim lower profits a....
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....5/HYD/09 for the assessment year 2004-05-Appeal by the Revenue The Revenue is in appeal against the action of the Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 21,70,000, as ground No. 1. The Assessing Officer was of the view that the assessee could not explain the sources for making the purchases of Rs. 21,97,000, which were outside the books of account. On appeal before the Commissioner of Income-tax (Appeals), the assessee submitted that what was found by the Assessing Officer is information regarding demand drafts sent and there is no information that the said remittance is an addition to the turnover admitted. The assessee further submitted that during the calendar year 2003 and the festival of Diwal....
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.... Revenue is in appeal before us. Learned counsel for the assessee submitted that the assessee has not denied that the demand drafts were sent by them. However, it has been clearly stated that on October 25, 2003, the festival of Diwali was cele- brated. Since most of the sales takes place in cash during this season, the sources of the demand drafts was the cash available from pre-diwali and diwali sale of crackers. He further submitted that although the Assessing Officer has confirmed with M/s. Standard Fire Works Ltd., Sivakasi that purchase of Rs. 21,97,000 were made by the assessee, nothing has been placed on record to indicate that the purchases relevant to the turnover shown by the assessee, i.e., Rs. 32 lakhs approximately were mad....