2024 (8) TMI 822

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....d in Law, CIT(A) NFAC erred in confirming an order u/s 147 r.w.s 144 of the Act passed by the NEAC (The A.O) ignoring the submission made by the appellant on 12.04.2024. GROUND II On the facts and circumstances of the case, and in Law, CIT(A) NFAC erred in confirming addition of Rs. 37,19,741/- by estimation net profit of 9.39% of turnover i.e. average of last three years Net profit ratio On the facts and circumstances of the case and in law the CIT and AO failed to appreciate the fact that: a) AO adopted the method of estimating the profit since under the pretext that the assessee has not filed the return u/s 148, which is factually incorrect. b) The assessee's financials were audited. The T....

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....is engaged in the business of trading of food grains and also receive salary from Shree Krishna Food Equipment and supplies Pvt Ltd. The assessee has filed the return of income for the A.Y 2016-17 on 17.10.2016 disclosing a total income of Rs. 20,66,750/-. Subsequently, the Assessing Officer (AO) has received information about the business transactions and has reason to believe that there is income escaping the assessment and has issued notice u/sec 148 of the Act and there was no compliance. The AO on perusal of the financial statements found that the assessee has disclosed the income from salary of Rs. 15,00,000/- and income from business of Rs. 7,66,751/-.The A.O find that the assessee has disclosed net profit @ 1.94% for the year under ....

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....fore the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in not considering the submissions of the assessee filed in the course of appellate hearings and details filed on 12-04-2024. Further the Ld.AR submitted that the assessee during the F.Y. 2015-16 was engaged in the business of wholesale trade and the profit margin in wholesale trade is very nominal and therefore cannot be compared to earlier years, where the assessee was engaged in the retail business. The Ld.AR mentioned that the assessee has a good case on merits and shall substantiate with the material evidences and supported the submissions with the factual paper book and the Ld.AR prayed for an opportunity to explain before the lower....