2018 (9) TMI 1023

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....the net profit rate at 8% ignoring the assessee's passed records as well as the turnover of the business. Further that the income estimated by the Ld. CIT(A) at Rs. 27,32,914/- as against the declared income at Rs. 8,46,472/- is highly excessive and bad in law. 3. The brief facts leading to the case is that the assessee, a FIRM filed his return of income on 12.10.2010 showing a total income of Rs. 8,46,470/-. The same was processed in AST on 23.05.2011 resulting a demand of Rs. 1,65,990/- and selected for scrutiny assessment. 4. Notice u/s 143(2) of the Act was served upon the assessee on 28.09.2011 followed by notice u/s 142(1) of the Act dated 07.03.2012. The assessee sought for time by a letter dated 27.03.2012. Subsequently the as....

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..... He further makes an alternative argument that in the event the estimation of 8% net profit if confirmed by us then the salary of the partners and interest of the partners account are to be considered for deduction. On the other hand, the learned departmental representative relies upon the order passed by the authorities below. 6. We have heard the learned representative appearing for the parties, we have perused the relevant materials available on record. We have gone through carefully the order passed by the Ld. CIT(A) which is impugned before us whereby and whereunder Rs. 18,86,442/- has been confirmed after computing the net profit @ 8% of gross turnover of the business of the assessee. While making such confirmation of addition, th....

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....4895 and the other account is in AXIS Bank, Barrackpore Trunk Road, Account No. 236010200008020. Copy of the bank statement of both these accounts are there on record. Perusal of these bank statements show that the cheques are deposited and the money is immediately withdrawn by way of cash. It shows that substantial portion of expenditure are shown by the assessee in cash for which it has not submitted any evidence during the assessment proceedings. Even during the appellate proceedings, the AR of the assessee only produced some of the books. The cash-book, which contained major details of expenses was not produced for verification. Salary and wages register were produced, which were totally incomplete in nature and thus not reliable. In ma....