TaxTMI 
TaxTMI 
2020 (2) TMI 447
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....l late. After perusing the condonation petition and considering the submissions of the rival parties, we are satisfied that there was reasonable cause in filing the appeal after delay of 14 days. Hence, we condone the delay and admit the appeal for adjudication. Admission of additional Grounds. 3. Ld counsel for the assessee submitted that in the present case, Ld Pr. CIT, Cuttack has modified the assessment order dated 30.12.2016 on two points viz; (i) to add the entire undisclosed contract receipts of Rs. 15,67,677/- and (ii) to estimate the net profit @ 8% on the disclosed contract receipts instead of income returned by the assessee. 4. Ld counsel for the assessee further submitted that in the main ground, the assessee has challenge....
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....assessment year 2013-14. In this chart, the assessee has shown net profit before allowing salary and interest on capital to partners and after allowing salary and interest on capital to partners which has not been disputed by ld. Pr. CIT. 7. Ld counsel for the assessee submitted that the net profit declared by the assessee on contractual receipts before salary and interest on capital to partners for assessment year 2013-14 is 5.72% and net profit after allowing salary and interest on capital to partners at 2.67%, which is quite justified and reasonable in view of earlier and subsequent assessment years results. Therefore, ld counsel for the assessee prayed that the modification order of ld Pr. CIT in directing the AO to estimate net profi....
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....s income of the assessee. 11. Ld counsel for the assessee submitted that as per the decision of Hon'ble M.P.High Court in the case of CIT vs Balchand Ajit Kumar, 263 ITR 610 (MP), the undisclosed credit sales does not represent the profit of the assessee, therefore, the addition cannot be made on entire sale but only the net profit element has to be adopted for the purpose of taxation in the hands of the assessee. Ld counsel also placed reliance on the order of the ITAT, Cuttack Bench in the case of R.R.Carrying Corporation vs ACIT, 126 TTJ (CTK) 240 and submitted that the entire addition of undisclosed receipts or contractual receipts cannot be taxed but only the net profit embedded in the contractual receipts can be taxed. 12. Replyin....