2023 (11) TMI 739

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....18,88,000/- in the accounts of the assessee, during the demonetization period, the learned Assessing Officer issued notices to the assessee to file the return of income. In response, assessee filed e-proceedings, stating that he is running business in the name and style of Balaji Fertilizers, Bachannapet and furnished computation of income statement, P&L account and other financial statements for the assessment year 2017-18, but failed to file the return of income for the assessment year 2017-18. As per the P&L account furnished gross sales of Rs. 1,24,57,139/- was admitted by the assessee with a net profit of Rs. 3,39,879/-. In the absence of return of income and audited statement, the learned Assessing Officer felt constrained to estimate....

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....ssessee is prepared to co-operate with the authorities to get the matter disposed of on merits. 5. Learned AR submitted that this particular year is the first year of the business of the assessee and for subsequent years also, the assessee has declared the net profit at around 3%. He submitted that in fertilizer business, only fixed percentage of commission will be given to the assessee and after meeting the expenses, the assessee would get only 3% of profit and, therefore, the profit declared by the assessee may be accepted. He further submitted that the gross sales of the assessee during the year were Rs. 1,24,57,139/-, assessee deposited into bank cash of Rs. 40,27,750/- in the entire year including Rs. 18,88,000/- during demonetizati....

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....dence to support their figures. In these circumstances, keeping in view the smallness of amount involved, I deem it just and proper not to restore the issue to the file of the learned Assessing Officer to conduct the entire exercise of assessment de novo, but instead, I am of the considered opinion that it is better to put a quietus to the issue by taking a pragmatic view as to the net profit in this case. Having considered the same, I deem it reasonable to adopt the net profit @6% and it would meet the ends of justice. I accordingly direct the learned Assessing Officer to adopt net profit in this case @6% of the gross sales. 8. Coming to the addition of Rs. 6,97,000/-, it is also not in dispute that there are cash sales conducted by the....