2023 (12) TMI 136

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessment order framed u/s 143(3) read with Sections 143(3A) & 143(3B) of the Act dated 13.03.2021. 2. The assessee is in appeal before this Tribunal raising the following grounds: "1. For that the Ld. CIT(A) was not justified in confirming the addition of Rs. 85,59,348/- made by the A.O. under the head "Income from Business Profession" by estimating the business profit at Rs. Rs. 1,14,28,598/-, being 8% of the total turnover of Rs. 14,28,57,480/-. 2. For that, without prejudice to above, the Ld. CIT(A) ought to have estimated a reasonable profit on the turnover of Rs. 14,28,57,480/- instead of affirming the A.O.'s action of unreasonable estimation of profit of 8% of turnover. 3. The appellant craves leave t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... where the turnover is less than Rs. 2 Crore. However, ld. CIT(A) after observing the details about the major purchases of the assessee from a specified person, disregarded the audited statement of the assessee and confirmed the action of the AO. 5. Aggrieved, the assessee is now in appeal before this Tribunal. Ld. CIT(A) referring to the paperbook dated 18.03.2023 containing 98 pages and also referring to the copy of income tax return for AY 2018-19 which was placed before this Tribunal on 26.03.2023 submitted that the books of accounts are regularly audited. Reference was also made to the year-wise sales, gross profit ratio and net profit ratio. Tax audit reports were also referred and was submitted that both the lower authorities erre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ss consists of (i) any business except the business of plying, hiring or leasing goods carriages referred to in Section 44AE; and (ii) whose total turnover or gross receipts in the previous year does not exceed an amount of two crore rupees. Considering the fact that the turnover of the assessee is Rs. 14.29 Crore, the provisions of Section 44AD of the Act cannot be applied in the case of assessee. So far as estimating of profits is concerned, we notice that in the income tax return filed by the assessee on ITR 3 even though it has taken the column 'no account case' but on page 2 of the Form complete details of the audit report u/s 44AB of the Act are mentioned wherein the assessee stated that it is covered u/s 44AB of the Act and books of ....