2025 (8) TMI 1168

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.... in nature, so doesn't require any adjudication. 3. Ground No.2 is against the action of the Ld.CIT(A) confirming the action of AO estimating business income @10% the net profit from the business of the assessee. 3.1 Brief facts are that the assessee is an individual carrying on business of running transport carriers. The assessee has filed his return of income (RoI) declaring total income at Rs. 28,42,190/-. Pursuant to notice u/s.148 of the Income Tax Act, 1961 (hereinafter in short "the Act"), the Assessing Officer reopened the assessment and noted that assessee has shown turnover of Rs. 2,88,12,296/- and has declared only profit of Rs. 19,47,089/- which was @6% of the turnover; and in this regard, the AO noted that in the earlier year....

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....ransport, but other business receipts too. The Ld AR pointed out that the turnover from the transport operations was only Rs. 1,88,12,296/- which was received from two clients M/s. India Nippon Electricals Ltd., & M/s.TVS Supply Chain Solutions Ltd., and the receipts are noted to have been received through banking channel to its accounts, which makes the assessee eligible for declaring profit under presumptive tax rate @6%. Therefore, we are of the view that since the assessee has offered profit @ 6% on its turnover from business of transportation at Rs. 11,28,737/- [i.e. 6% of Rs. 1,88,12,296/-, the same is directed to be accepted @6% i.e. Rs. 11,28,737/-. The balance amount of the gross turnover thus comes to Rs. 1 Cr. (Rs. 2,88,12,296/- ....

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....ess, viz., M/s Dilip Buildcon Limited, M/s D P Jain and Co Infrastructure Private Limited had reported profitability in the range of 3% to 9% across these years. Further, M/s SPL Infrastructure Private Limited, which is found to be most functionally comparable, as it is a Chennai-based entity engaged in executing road construction projects for NHAI, had also reported profitability in the range of 4% to 6%. It is noted that Hon'ble jurisdictional Madras High Court in the case of SPL Infrastructure Private Limited (420 ITR 213) had found net profit rate of 3.83% from road projects of NHAI to be a justifiable margin. As far as the decisions relied upon by Ld. CIT(A) is concerned, it is noted that the facts involved therein were factually disti....

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....ls of the assessee are partly allowed. 4.3 In the light of the aforesaid discussion, we direct the AO to delete the ad hoc disallowance made u/s.40A(3) of the Act to the tune of Rs. 27,26,464/-. 5. Ground Nos.6-9 are in respect of additions made by the AO u/s.69A of the Act to the tune of Rs. 53,75,000/-. 5.1 Brief facts are that the AO noted that he received information that assessee has purchased immovable property in AY 2019-20 for an amount of Rs. 53,75,000/-. Therefore, he asked the assessee to file necessary documents related to purchase of the property as well as to explain the source of the investment. According to the AO, despite providing opportunities, assessee failed to file the requisite information. Therefore, he made an ad....