2011 (9) TMI 1146

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.... ORDER Per Mahavir Singh, JM This appeal by revenue is arising out of order of CIT(A)-XXXVI, Kolkata in Appeal. No. 899/CIT(A)-XXXVI/Kol/Wd.56(3)/09-10 dated 07.02.2011. Assessment was framed by ITO, Ward-56(3), Kolkata u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2007-08 vide his order dated 31.12.2009. 2. The only issue in this appe....

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....30/- as against transportation income of Rs. 50,37,14,220/- in the P&L Account. Accordingly, he noted that the difference of transportation income and transportation charges paid is Rs. 28,18,290/- which is only .56%. The assessee was required to explain the reason for low percentage of profit in view of the fact that in the case of transporters, profit margin is 3.98% to 10.55% which is as under:....

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..... AR of the appellant though filed a statistic explaining that the appellant had paid higher rate of hire charges and received lesser rate of hire charges per MT compared to the last year but failed to mention under what circumstances the appellant was compelled to do so. This is precisely the point queried by the A.O. which the appellant failed to explain satisfactorily during the time of assessm....

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....ation of profit cannot be considered reasonable. Considering all the issues as discussed above, in my opinion, it would be a fair and honest decision if the profit is estimated at 1% of the transportation charges receipts of Rs. 50,37,14,220/-, equaling to Rs. 50,37,142/-. The A.O. is directed accordingly. Thus, the appellant gets relief of Rs. 30,22,.285/- (Rs.80,59,427/- minus Rs. 50,37,142/-)."....