2025 (6) TMI 1486

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....ly estimated by the Assessment Unit, Income Tax Department @10% of Turnover at abnormally high rate of Net Profit and even higher than the Net Profit percentage prescribed u/s. 44AD of the Income Tax Act, 1961. 2. The Commissioner of Income Tax (Appeals), failed to observe that the appellant is dealing in perishable commodity in which it is not possible to earn such higher Net profit percentage as estimated by the Assessment Unit, Income Tax Department. 3. The Commissioner of Income Tax (Appeals) erred in confirming the amount of Interest charged by the Assessment Unit, Income Tax Department under section 234A Rs. 150930/- 234B of Rs. 162540/ and 234C of Rs. 510/-. 4. The aforesaid grounds are alternative and without prejudice to one ....

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..../Hyd/2012 for the A.Y 2009-10 and submitted that the Tribunal has held that in the business of purchase and sale of fruits and vegetables, the profit margin @ 4% is reasonable and proper instead of 8% adopted by the Assessing Officer. Thus, the learned AR of the assessee has submitted that the income of the assessee may be estimated by adopting the net profit @ 4%. 6. On the other hand, the learned DR has submitted that the assessee is a non-filer of return of income as no return of income was filed by the assessee. Even the assessee has not filed any Tax Audit Report despite having the turnover of Rs. 1,21,88,627/-. In the return of income filed by the assessee in response to the notice u/s 148 of the Act, the assessee has declared Rs. 4,....

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.... by the assessee, the income of the assessee was required to be assessed at best judgment basis and the Assessing Officer ought to have estimated the income by taking some reasonable and proper guidance of net profit rate in the business of fruit vendor. The Assessing Officer in the notice issued u/s 142(1) of the Act has proposed to estimate the income by adopting the net profit rate at 8% as per section 44AD of the Act, however, while framing the assessment order, the Assessing Officer has estimated the income by applying the net profit at 10% of the turnover which is contrary to the show-cause notice issued by the Assessing Officer. Thus, estimation of income by adopting 10% as net profit is not sustainable in law when the Assessing Offi....