TaxTMI 
TaxTMI 
2026 (1) TMI 921
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....o as "the Act") for the assessment year 2014-15, wherein learned CIT(A) has allowed assessee's appeal. 2. Briefly stating, the facts are that the assessee is engaged in the business of trading of live stock (buffalos) as well as sale of iron scrap. The break-up of sales is that sale of Rs. 33,02,83,735/- is animal sales and Rs. 36,54,000/- is scrap sales, totaling to Rs. 33,39,37,735/-. The assessee filed return of income on 25.03.2015 for A.Y. 2014-15, declaring total income of Rs. 2,19,460/-. The return was processed u/s. 143(1) of the Act. Later on, the case was reopened u/s. 147 of the Act on the issue of suppressed turnover. Notice u/s. 148 of the Act was issued. Assessee filed return in response thereof, declaring total income at R....
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....isclosed & claimed the sales from the Livestock / animals. 2. That the CIT(A) has erred on facts and in law in deciding the issue of application of NP rate on sales/turnover from livestock/animals sales in favour of the assessee on the basis of NP declared by the assessee in one year before and after one year from the year under consideration ignoring the fact that the assessee has not disclosed the sales of livestock/animals in the returns originally filed by him for those years also and the same were claimed only after initiation of proceedings u/s. 147 in those years. 3. That the CIT(A) has erred on facts and in law in failing to address a critical issue during the appellate proceedings, despite clear findings in para 5....
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....e fact that the merits of that case were entirely different from the present case; (i) in the case of Zaheer Salimuddin, the assessee was engaged in the business of commission and was not involved in the trading of livestock. (ii) The case of Zaheer Salimuddin did not involve crucial factors such as the intentional suppression of turnover, whereas in the present case, there is clear evidence that the assessee deliberately underreporting turnover and disclosing negligible profits in the returns and turnover from sale of livestock/animals were claimed/disclosed only after proceedings under section 147 were initiated by the department. 6. That the order of the CIT(A) dated 08.01.2025 is bad in law and deserves to be ....
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....or through banking channels. The AO in his order has mentioned that the Assessee did not get his books of accounts audited by an accountant before the specified time, although his turnover was more than the specified limit. In his original ITR for AY 2014-15, the assessee has shown gross turnover/receipts of Rs. 36,54,000/- only and presumptive business income u/s 44AD of Rs. 2,94,760/- only. Now when the case of Assessee was reopened u/s 147, the assessee has revised his ITR u/s 148 and shown sales of Rs. 33,39,37,735/- and total income of Rs. 9,74,530/-as against income shown earlier at Rs. 2,19,460/- in original ITR. As the assessee could not produce the evidences before the AO during assessment proceedings, the AO appl....
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....22 3,46,922 0.23 Scrap Sale A.Y. Turnover Net Profit % of N.P. 2013-14 28,58,740 265480 9.28 2014-15 36,54,000 2,94,759 8.0 2015-16 44,87,600 3,91,174 8.71 The appellant has mentioned that learned AO has not pointed any specific defects in the books of accounts to justify rejection of accounts, except the fact that some of the notices remained unresponded. c). Hon'ble ITAT Bench Agra, In its decision reported at ITA No. 132/AGR/2018 in the case of Zaheer Salimuddeen V/s ACIT Circle 1 Aligarh for AY 2014-15 has decided that- "7. We have heard the rival contentions of both the parties and perused the record. The finding recorded by the lower authorit....
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....assed applying the N.P rate ranging from 0.15 to 0.23%. The estimation of the Income has to be based on comparable cases in similar trade or assessee's own past results. Hence, I hold that on animal sales turnover of Rs. 33,02,83,735/- N.P rate of 0.22% shall be calculated as net profit and for iron scrap turnover of Rs. 36,54,000/-, N.P rate of 8.07% should be applied." 8. It transpires from the perusal of the assessment order that that learned Assessing Officer has applied the common NP rate of 8% on both iron scrap business as well as on animal sales business. Perusal of the percentage of NP rate on animal sales and scrap sales, depicted hereinabove, shows that there is substantial difference in the NP rate of th....