2025 (10) TMI 641

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....learned CIT(Appeals), NFAC vide Appeal No. CIT(A), Cuttack/10860/2019-20 dated 08.02.2024 without considering the statement of facts and grounds of appeal filed with Form-35 and without following the principle of natural justice is illegal, arbitrary, excessive and not in accordance with law. 2) That the addition of Rs. 10,18,877/- by estimating net profit @ 5% by the learned AO and confirmed by the CIT(A), NFAC is on very much higher side and arbitrary considering the nature of business of wholesale and retail trading of poultry chicken where net profit earned is very low and nominal. 3) That the addition of Rs. 6,77,500/- in SBN Currency made u/s.69A as unexplained money made by the Id.AO and confirmed by the CIT(A) is i....

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....ing explanation, therefore, he prayed for setting aside the order to the file of the AO. 4. On the other hand, ld. Sr. DR submitted that the AO as well as the ld. CIT(A) has decided the issue on merits after considering the details filed by the assessee and the statement of facts available for the ld. CIT(A). Thus, there is no question of non-providing proper opportunity to the assessee. 5. After considering the arguments, we find that before the AO assessee has filed certain details based on which the AO has completed the assessment u/s.143(3) of the Act. It is not a case where the assessment was completed u/s.144 of the Act as best judgment assessment. Further the ld. CIT(A) has decided the appeal after considering the statement of ....

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....ubstantially as compared to the previous year where the profit rate of 5.09% was declared as compared to 2% in the year under appeal. Further the assessee has not been able to furnish the complete books of accounts before the AO, therefore, could be said that the trading results declared are true and correct and accordingly the Sr. DR prayed for the confirmation of the addition so made. 8. We have considered the rival submissions and perused the material available on record. Admittedly, in this case the provisions of Section 145(3) of the Act were invoked by the AO as the assessee has failed to produce the complete books of accounts. The assessee has not challenged such application of provisions of Section 145(3) of the Act. The only iss....

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....nthwise details of cash deposited and withdrawal as tabulated at pages 2 to 7 of the assessment order. It is also a matter of fact that the books of accounts were not accepted by the AO and the provisions of Section 145(3) of the Act were invoked and the income is estimated. Once, the income is estimated by applying the profit rate under these circumstances no further addition is required to be made towards the cash deposited in the bank which were out of the sales made which has already offered for tax. 11. With regard to the reliance placed by the ld. Sr. DR on the decision of the Hon'ble supreme Court in the case of CIT Vs. Devi Prasad Vishwanath Prasad (1969) 72 ITR 194 (SC), it is seen that in that case there were cash credit in the....