TaxTMI 
TaxTMI 
2021 (8) TMI 794
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....d income of Rs. 4,23,316/- is bad both on the facts and in law. Therefore, the income declared based on closed books of accounts should have been accepted in the facts and circumstances of the case. 2. That in any view of the matter the additions of Rs. 2,92,147/- in Singh Transports as made by the Assessing Officer and confirmed by the Ld. CIT(A) by applying Net Profit Rate of 4.5% as against the Net Profit Rate of 3.96% disclosed by the assessee is highly unjustified. 3. That in any view of the matter the additions of Rs. 2,50,907/- in Singh Traders as made by the Assessing Officer and confirmed by the Ld. CIT(A) by applying Net Profit Rate of 1% as against the Net Profit Rate of 0.13% disclosed by the assessee is highly....
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.... net profit of 4.8% is highly excessive and arbitrary and deserves to be deleted. 4. On the other hand, the learned DR has submitted that the higher amount of depreciation considered by the Assessing Officer has resulted the higher rate of net profit declared by the assessee before depreciation and therefore, the said mistake of the Assessing Officer is not prejudicial to the interest of the assessee. He has pointed out that if the correct amount of depreciation is taken into consideration then the net profit declared by the assessee would come at a lower rate than considered by the Assessing Officer. He has relied upon the orders of the authorities below. 5. I have considered the rival submissions as well as the relevant materials av....
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....current year. The comparative details of the net profit declared by the assessee which are not in dispute are as under:- SINGH TRANSPORT AGENCY A.Y. RECEIPTS SHOWN NET PROFIT NP RATE 09-10 2,08,35,640 3,12,597 1.52% 10-11 2,82,81,064 4,23,316 1.49% 11-12 8,44,29,722 8,65,990 1.02% 12-13 7,68,88,281 9,22,659 1.20% 7. Once the net profit declared by the assessee in the preceding year is available and is accepted by the Revenue then the estimation of the income ignoring the past history or any other reasonable basis on the part of the Assessing Officer is not justified. The Asse....
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....tes therefore, no closing stock is shown by the assessee. The assessee has given the details of purchase of bricks, purchase of sand and transport work. The Assessing Officer then pick up the purchase and sale of brick activity and estimated the profit by applying net profit rate of 1% on the sale amount. Hence, the Assessing Officer has made an addition of Rs. 2,50,907/- to the profit declared by the assessee of Rs. 65,275/-. The assessee challenged the amount of the Assessing Officer before the CIT(A) but not succeeded. 9. Before the Tribunal, the learned AR of the assessee has submitted that the assessee has explained the reasons for low profit in the business of purchase and sale of bricks and sands due to the reason that the tender ....