TaxTMI 
TaxTMI 
2021 (2) TMI 642
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....ereinafter) dated 22.12.2017 for Assessment Year (AY) 2010-11. Though the appeal raises as many as six grounds, only Gd. 3, i.e., toward non-cognizance of the rectification dated 10.01.2019, revising the assessee's business income, was pressed before us. 2. The background facts of the case, to the extent relevant, are that the assessee is wife of Shri Ranjeet Shivhare, a key member of the Shivhare group, which (including the assessee) was subject to search action u/s. 132 of the Act on 07.01.2016. Incriminating documents were found and seized, and the assessment framed for AYs. 2010-11 to 2015-16 (u/s. 153A) and for AY 2016-17 (u/s. 143(3) on the basis thereof. The assessee failing to produce the books of account during the assessment pr....
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....ure action u/s 132 has been carried out in the case of appellant on 07.01.2016. During the course of search various incriminating documents were found and assessment has been completed after taking into account the seized material and other incriminating documents found during the search. As per para 14.0 of the assessment order, a show cause was given to the assessee to adopt net profit rate @ 8% and to reject books of account. As per para 14.2 net profit rate @ 4% has been adopted after rejecting the books of account. The books of account has been rejected after due application of law. After rejection of the books of account, the net profit has been calculated after estimating the turnover and net profit rate. The AO while passin....
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.... rejecting the books of account, the AO had estimated the turnover and net profit of the assessee's liquor business based on incriminating documents. The same, therefore, cannot be a subject matter of section 154. Further, no other material toward reduction in the estimated turnover and net profit rate was adduced by the assessee before him, so that no relief was exigible to her. The assessee's grievance before us is only with regard to the turnover and not the net profit rate, estimated by the AO at 4% as against the returned 3.6%. 4.2 The only issue qua turnover is whether the same stands estimated by the AO, and which, where so, would only be on the basis of some material. We find no reference to any material, or in fact any discussio....
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....e same is tabulated as under: A.Y. Total Turnover Net Profit (4% of Total Turnover) Net profit as per RoI Difference 2010-11 11,76,,50,385/- 47,06,015/- 3,80,792/- 43,25,223/- 2015-16 3,19,51,800/- 12,78,072/- 3,28,004/- 9,50,068/- 2016-17 3,72,23,847/- 14,88,953/- 5,21,356/- 9,67,597/- I am satisfied that assessee has concealed her total profit by concealing the original books. The penalty proceedings must be initiated for concealing income during AY 2010-11, 2015-16 & 2016-17. Hence, penalty proceedings u/s 271(1)(c) is hereby initiated for AY 2010-11, 2015-16 & u/s 271AAB for 2016-17. The RoI for AY 2010-11, 2015-16 & 2016-17 was filed by the assessee on 14.03.....
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.... to AYs. 2015-16 & 2016-17, for which years, again, the net profit of the assessee's liquor business has been uniformly estimated by the AO, and which was done by him by filing a supplementary Paper-Book on 04.02.2021, whereat the case was fixed for hearing, making reference to pages 25 and 11 thereof for AYs. 2015-16 & 2016-17 respectively. The adopted figures for these years by the AO (at para 14.2 of the assessment order) is in complete agreement with that as per the assessee's audited accounts, clarifying the basis on which the AO has taken the turnover figures for all the three years, i.e., the audited accounts furnished by the assessee. There is accordingly no manner of any doubt that the turnover for AY 2010-11, as stated at para 14.....