2024 (9) TMI 636

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....s: "The National Faceless Appeal Centre, instead of accepting the profit and gain from business returned at Rs. 7,25,000, being 6.8455% of the turnover of Rs. 1,05,90,913(both declared and undeclared), erred in directing the Assessing Officer to adopt profit at 15% on the undeclared turnover of Rs. 96,40,913/-" 3. Brief facts of the case are as follows: Assessee, an individual, is engaged in the business of transport of goods. For the Assessment Year 2016-17, the return of income was filed on 14.03.2017 declaring total income of Rs. 7,34,970/-. The assessment was selected for limited scrutiny under CASS for examination whether the contract receipt / fees has been correctly offered for tax. The AO issued notice under section 1....

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.... It was submitted that AO's assessment of the same at 30% is unreasonable and on the higher side. The CIT(A) partly allowed the appeal of the assessee by reducing the profit that is to be adopted at 15% on the undeclared turnover instead of 30% as estimated by the AO. The relevant finding of the CIT(A) reads as follows: "7.3) I have gone through the facts of the case and the submissions of the appellant. As per the provisions of Section 44AB every person carrying on business shall. if his total sales. turnover or gross receipts. as the case may be. in business exceed Rs. 1 crore in any previous year, get his accounts of such previous year audited. In the instant case. the total gross receipts of the appellant exceeded Rs. 1 crore a....

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....5, 2017-18 and 2018-19 the net profit rates were estimated at 8.24% and 8%. 6. The learned Standing Counsel supported the Orders of the AO and CIT(A). 7. I have heard the rival submissions and perused the material on record. Assessee in the return of income had declared total income of Rs. 7,34,970/-. The income under the head "Profit and Gains from Business / Profession" was declared at Rs. 7,25,000/- as under : Particulars: As in Form ITR 4; in Rupees: Gross receipt 9,50,000 Gross profit 9,50,000 Expenses 2,25,000 Net profit 7,25,000 8. During the course of assessment proceedings, assessee admitted that gross receipts from the business of transport of goods is Rs. 1,05,90,912/- as noted in Form 26AS.....