2024 (5) TMI 100

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.... "1 The order of the learned CIT (A) is erroneous both on facts and in law. 2) The learned CIT (A) erred in deciding the appeal ex-parte without providing proper opportunity to the appellant; 3) The learned CIT (A) ought to have sent the notices physically for appearance; 4) The learned CIT (A) erred in confirming the action of the Assessing Officer in rectifying the assessment passed u/s 143(3) for increasing the rate of profit; 5) The learned CIT (A) ought to have seen that the Assessing Officer is not entitled to rectify the percentage of profit as a mistake apparent from record 6) The learned CIT (A) ought to have seen that there is no mistake which can be rectified u/s 154 of the I.T. Act....

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....ry business is 2% on the turnover of Rs. 47,13,227/- and thereby determined the income at Rs. 3,80,225/-. Thereafter, Assessing Officer after having a doubt about the commission income, issued a notice u/s 154 of the Act. According to the Assessing officer the turnover of Rs. 47,13,227/- was to be termed as sales and the estimation of income was required to be made at 8%. Hence, the Assessing Officer added further amount of Rs. 3,77,058/- and accordingly, passed order u/s 154 of the Act dt. 18.09.2019. 5. Feeling aggrieved with the order of Assessing Officer passed u/s 154 of the Act, assessee filed an appeal before the ld.CIT(A), NFAC, Delhi, who dismissed the appeal of assessee. 6. Before me, the ld. AR for the assessee has submitte....

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.... any documentary evidence of commission business, the net profit should be determined @ 8% instead of 2%, resulted in short computation of income'. The Assessing Officer thereafter calculated the income at 8%, i.e. at Rs. 7,57,283/- as against originally assessed income of Rs. 3,80,225/- (at 2%) u/s 143(3) of the IT Act. 5.3. During appellate proceedings there has been no response by the appellant. Section 154 of the IT Act comes into play when there is a "mistake apparent from record". As is clear that the issues of determination of source of income i.e. either Business income or Commission income, without examining any evidence, is a mistake apparent on the record. Accordingly, the action of the AO in treating the commission rece....