2026 (4) TMI 650

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.... vide its order dated 30.6.2022 in ITA no. 1713/Del/2019 had remanded the assessee's assessment case (order u/s. 143(3) dated 15.3.2016) to the AO for fresh assessment with the directions to examine and determine the real turnover of the assessee. During the course of set aside assessment proceedings, notice(s) u/s. 142(1) of the Act was issued to the assessee asking him to furnish details and relevant supporting documentary evidences in support of his returned income. In response to which, the assessee filed submission with requisite documents. However, on perusal of the same, it was found by the AO that the assessee had not furnished satisfactory explanation and complete documents. Therefore, according to AO, the issue of net income remai....

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....Rs. 367.87 crores on adhoc basis, without any cogent material or evidence, thereby ignoring the assessee's consistent practice of earning commission at 15 to 20 paise per kg of meat supplied." 4. At the time of hearing, Ld. AR for the assessee has filed a chart showing the Gross Profit for the preceding assessment year 2012-13 @ 0.29% which was estimated by the Tribunal @0.40% vide its order dated 8.10.2025 in assessee's own case in ITA NO. 4097/Del/2024 (AY 2012- 13), hence, it was submitted that in the instant year i.e. AY 2013-14, the assessee has shown Gross Profit @0.16%, thus, it was prayed to estimate the same on the similar lines @ 0.30%, in view the aforesaid decision of the Tribunal. 5. On the other hand, ld. DR of the Reven....

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....he assessee and they adjust the same according to the indent raised by them. Therefore, there is no risk involved in the purchase/processing of the carcass/meat to the assessee. That being the case, the assessee was compensated with competitive percentage of commission or compensation for processing of purchase, rather it can be considered that the compensation is towards regularization of the purchases. From the profit & loss account submitted before us, it indicates that assessee has very little control over the process. It is noticed that the assessee has got very little administrative expenditure and it is fact on record that assessee is only a pass through entity functions with a thin margin of purchase commission. 9. Since th....

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.... to live stock the estimated income by the coordinate Bench at 0.50%. The cases will vary case to case basis and the coordinate Bench has decided the issue of turnover of independent live stock dealer @ 0.50% whereas when dealing with the big group with high turnover, the same margin cannot be expected. Therefore, in the given case, assessee is declaring around 0.29% consistently over the years. For the sake of overall justice, we are inclined to estimate the GP of 0.40% of the gross sales." 7. After considering the aforesaid findings, it transpires that assessee is regularly declaring the GP of 0.29%, hence, the Tribunal in assessment year 2012-13 estimated the GP 0.40% of the gross sales. Therefore, respectfully following the precedent....