2021 (5) TMI 634

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....the assessee against the order of the CIT(A), 1, Bhubaneswar dated 15.7.2014 for the assessment year 2010-2011. 2. Ground Nos. 1, 6 & 7 are general in nature. 3. Ground No. 2 relates to addition of Rs. 5,11,550/- treating the same as bills recoverable during the year. 4. I have heard the rival submissions and perused the record of the case. On verification of the balance sheet, the AO not....

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....pts cannot be treated as income of the assessee and only the profit percentage embedded therein can be taxed. 6. Replying to above, ld. DR submitted that the amount of Rs. 5,11,550/- has been shown over and above the receipt shown in the balance sheet, therefore, the AO was right in treating the same undisclosed receipts. 7. On careful consideration of the rival submissions, I observe that t....

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....age @ 5% on the undisclosed receipts of Rs. 5,11,550/- is taxed in the hands of the assessee.. Therefore, I direct the AO to determine the net profit @ 5% of the undisclosed receipts. Accordingly, this ground is partly allowed. 8. The next issue is regarding disallowance of 3.5% of the expenses, totaling to Rs. 2,96,121/-. 9. I have heard the rival submissions. On perusal of the orders of lo....

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.... Hence, this ground is rejected. 10. As regards to Ground No. 4 regarding disallowance of salary paid to partners of Rs. 48,000/-, ld. A.R. could not controvert the findings of the ld. CIT(A). Hence, I do not find any infirmity in the order of the ld. CIT(A), which is confirmed. Ground No. 4 is dismissed. 11. The next issue relates to confirmation of addition of Rs. 2,19,824/- regarding dedu....