2021 (9) TMI 578

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....lf of the assessee Smt. Ranu Biswas, Additional CIT, appeared on behalf of the Revenue ORDER Per Shri J. Sudhakar Reddy, Accountant Member:- This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-14, Kolkata dated 21.01.2020 passed under section 250 of the Income Tax Act, 1961 (in short 'the Act') for the assessment year 2011-12. ....

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....n merit. 3. The assessee is a partnership firm which derives income from business and profession. It filed its return of income on 25.04.2018 disclosing total income of Rs. 72,130/-. The case was reopened under section 148 of the Act, thereafter the assessment was completed under section 143(3) read with section 147 of the Act on 11.12.2018 determining the total income of the assessee at Rs. 9,....

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....ion. The appellant had disclosed a GP of 22.98% for the AY 2011-12. Therefore, it would be reasonable to limit undisclosed profit embedded in the bogus purchase to 22.98% at Rs. 1,96,477/-. The addition of Rs. 8,54,993/- is restricted to Rs. 1,96,477/-. This ground of appeal partly succeeds and is therefore partly allowed". Aggrieved by the order of the ld. CIT(Appeals), the assessee is in furt....

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.... 4. Alternatively it was submitted by the ld. Counsel for the assessee that the percentage adopted by the ld. Pr. CIT was highly excessive and as the assessee's turnover is less than Rs. 40 lakhs and therefore the net profit should be considered at 8%. Even going by the gross profit as declared in the profit & loss account for the year ended 31.03.2011 the net profit is 10.04%. 5. The ld. D.....