2021 (3) TMI 826

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..../s 143(3) of the Income Tax Act, 1961 (for short 'the Act'). 2. Brief facts of the case are that the assessee being Association of Persons (AOP) filed its return of income for the assessment year under consideration declaring total income of Rs. 1,56,765/-. Since the case was selected for limited scrutiny, notice us/s 143(2) of the Act was served upon the assessee. Subsequently, the AO issued notice u/s 142(1) of the Act. In response thereof, the assessee filed written submissions and furnished the documents called for by the AO. It was noticed that as per form No. 26AS for the AY under consideration, the assessee received an amount of Rs. 5,58,46,055/-, however, declared commission income of Rs. 6,80,400/- and interest income of....

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.... part relief of only 0.5%, the net profit rate from 2% of gross receipts as estimated by the AO and, therefore, has erred in confirming the commission income of Rs. 8,37,690//- being 1.5% of the gross receipts of Rs. 5,58,46,055/- of the assessee. 3. That the Worthy CIT (A) has erred in not considering that the appellant earned gross transportation receipts of Rs. 5,58,46,055/- on behalf of its members, who owned the trucks & performed the work of goods delivery and that such proceeds were passed to the members based on the work done by them, after deducting commission income from the same, which has been duly offered to tax by the assessee and, thus, no addition was called for in this regard. 4. That the Worthy CIT(A) has....

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....re is a delay of 44 days in filing the present appeal, the assessee has filed an application for condonation of delay. The Ld. Counsel submitted before us that the order u/s 250(6) was passed on 20.2.2020 and served upon the assessee on 13.3.2020. Therefore, the appeal was to be filed on or before 16.5.2020. However, due to the outbreak of COVID-19, the appeal could not be filed within limitation period. The Ld. Counsel further pointed out that the Hon'ble Supreme Court taking cognizance of Covid-19 pandemic across the country, has extended the limitation for filing appeals etc. w.e.f. 15.03.2020 till the further orders. Since the assessee's case is covered by the order of the Hon'ble Supreme Court, the delay may be condoned. ....

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....ointing out any specific defect in the books of the appellant except for non- production of vouchers. The Ld. Counsel further contended that the Ld. CIT(A) has wrongly sustained the addition of 1.5% of the Gross receipts on estimated basis. The Ld. counsel placing reliance on the decision of the Amritsar Bench of the ITAT in the case of The Truck Operator Union, Jaitu vs ITO, Faridkot ITA No. 577/Asr/2013 submitted that in the said case, the books of the assessee were rejected u/s 145(3) due to non-production of vouchers by the assessee. However, the ITAT deleted the addition holding that the rejection of books of account without pointing out any specific defect is not sustainable. 9. Without prejudice, the Ld. counsel submitted that the....

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....principles of law laid down in the aforesaid cases, the Ld. counsel submitted that the percentage of profits estimated by the Ld. CIT(A) is on the higher side, therefore unreasonable and not sustainable. 11. On the other hand, the Ld. Departmental Representative (DR) submitted that the Ld. CIT(A) has sustained the addition @ 1.5% gross profits keeping in view the facts and circumstances of the case and on the basis of past history. Hence, the estimation of net profit @1.5% sustained by the Ld. CIT(A) is reasonable, therefore, no interference is warranted. 12. We have heard the rival contentions of parties and perused the material on record including the cases relied upon by the authorities below and the Ld. counsel for the assessee. T....