TaxTMI 
TaxTMI 
2017 (4) TMI 340
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....inally, appeals in ITA Nos. 1656/Hyd/2012 & 1657/Hyd/2012 are dismissed for non-prosecution by the orders dt. 12-09-2013. However, a Miscellaneous Application was preferred by assessee. These were recalled by the order dt. 22-11-2013. Since the issues involved are common, these appeals are disposed-off by this common order. 2. Briefly the facts of the case are that, assessee is a private limited company. There were search and seizure operations in assessee's case and proceedings were initiated for all the assessment years from 2000-01 to 2006-07 and orders were passed. On further appeals, the matter was restored again and finally, the issue of determination of income was finalised by the order of the Co-ordinate Bench for the assessment ....
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....opted by the assessee was complex and the relevant data generated by the assessee based on Bills and Vouchers were not available with the assessee and part of the documents were seized by the department, which was used by the special auditor to recast the P&L A/c. The degree of reliance and reliability of information adopted by the special auditor is the main grounds of appeal by the assessee. There is no dispute that the special auditor had to rely on the information available with him & with the AO which were acquired due to search and seizure operation. The assessee also expressed in one of the communication with the special auditor that due to efflux of time, the assessee was not in a position to submit the relevant bills and vouchers e....
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....ted before us by both assessee & DR as the business of assessee is in real estate dealing only in buying, developing and selling lands. 13.5 The relevant data before us are (extracted from paper book Submitted by the assessee) Cumulative figures a) Cumulative turnover for 7 AYs (As per special audit report accepted by the assessee) 100.61 crores b) Income assessed by ACIT 21.20 crores (21.07%) c) Income assessed by CIT(A) 11.64 crores (11.57%) d) Income computed by special auditor 9.71crores(9.65%) While analyzing the above values, we are of the view that income assessed by ACIT is ruled out as it is at 21.07% as the above % is more than 15%, which was already rejected by ITAT and also the profit ar....
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...., sales, opening and closing stock. Based on the submissions of DR and assessee, we are of the view that the reliability of the special audit could be in between 80- 85%. On applying the reliability factor to the income determined by special auditor of 9.65%, we will end up arriving the income at 8%, which is similar to section 44AD. 13.7 On the other hand, the provisions of section 44AD proposed to adopt 8% of the total turnover or gross receipts of the assessee shall be deemed to be profits & gains of the business chargeable to tax. This section prescribes a thumb rule or presumptive net profit rate applied for those assessees whose turnover are less than one crore. No doubt, the turnover of the assessee is more than the prescrib....