2014 (5) TMI 40

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....CIT(A) has erred in law and on facts in deleting the addition of Rs.33,47,155/- made by the AO on account of Gross Profit." 3. The learned DR submitted that the CIT(A) has wrongly deleted the trading addition by observing that the assessee was not given a show cause notice before the impugned addition. He submitted that the show cause notice was served on the assessee and ample opportunity was given to the assessee. The assessee has not availed the opportunty allowed to it. He submitted that the AO vide notice dated 21.12.2009 have asked the assessee why the GP rate at 25% should not be estimated. He submitted that the CIT(A) has not advanced any valid reason for deleting the trading addition made by the AO. The learned counsel for the ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d no reason has been advanced by the AO to disallow the same. In the facts and circumstances of the case, we are of the view that the rate applied at 25% on the gross receipts of the assessee is unjustified and that ends of justice shall be met if flat rate of net profit at 8% is applied on the gross receipts received by the assessee, without any further deduction of any expenses or depreciation, which comes to Rs.10,71,000/- and we direct the AO to adopt this figure of Rs.10,71,000/- as income from the transport business of the assessee, as against the income estimated by the AO at Rs.33,47,155/- and the ground no.1 of the Revenue is partly allowed. 5. The ground no.2 of the Revenue's appeal is as under: "2. The ld.CIT(A) has erred i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... as under: "3. The ld.CIT(A) has erred in law and on facts in admitting fresh evidences in violation of Rule 46A and not allowing the AO an opportunity to verify and comment upon the fresh evidences furnished by the assessee." 9. We have heard parties on this issue. We find that in view of our restoring the issue in the ground no.2 of the Revenue to the file of the AO for verification, and in view of our decision in applying the flat rate of net profit on the gross receipts of the assessee, this ground of the appeal of the Revenue has no merit, and accordingly, is dismissed. CO No.263/Ahd/2010 (Assessee's CO) 10. The CO of the assessee is barred by limitation by seven days. The assessee has filed an application for condolation of de....