TaxTMI 
TaxTMI 
2025 (4) TMI 2087
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....and circumstances of the case, and applied 6.5% of NP rate, therefore is bad in law and liable to deleted. 2. Because the Ld. CIT(A)-2, has failed to follow historical history of N.P. of the firm and applied 6.5%., therefore is bad in law and liable to deleted. 3. Because, the assessee reserve the right to add, delete, alter or amend any grounds of appeal as per your permission your honor." 2. Ground Nos. 1 & 2 are against sustaining the addition made by applying 6.5% of net profit (NP). 3. Ground no. 3 of the assessee's appeal is general in nature and requires no separate adjudication. 4. The facts giving rise to the present appeal are that in this case, the assessee filed his return of income through electronica....
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....ddition of the entire amount of Rs. 91,89,800/-. Further, the Assessing Officer made an addition of Rs. 3,98,322/- being the capital of the assessee treating the same as unsecured credit entry. Hence, the Assessing Officer assessed income at Rs. 1,48,93,730/-. Aggrieved against this, the assessee preferred an appeal before the Ld. CIT(A), who partly allowed the appeal of the assessee. Thereby, he deleted the unsecured loan and capital credit entry of Rs. 3,98,322/-. However, in respect of the business receipts, the Ld. CIT(A) restricted the addition to the extent of 6.5% of the net profit. Aggrieved against this, the assessee is in appeal before this Tribunal. 5. At the time of hearing, no one attended the proceedings on behalf of the as....
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....bmitted that the substantial relief has already been granted to the assessee. He also pointed out that the assessee grossly failed to support his contention by filing the books of accounts before the lower authorities. Further, the Ld. CIT(A) has taken very liberal view by restricting the addition to the extent of 6.5%. He supported the assessment order and contended that the appeal of the assessee deserves to be dismissed. 7. Heard, the Ld. Departmental Representative and perused the material available on record. The only effective ground in this appeal is against the adoption of the net profit @ 6.5%. The assessee is engaged in the business of Civil Contractor. The assessee has not placed before us any books of accounts so was the case....
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....shown in the present AY (as outlined in para 8.2 of this order). It is a fact that as the gross receipts increase the NP rate decreases and vice-versa. Accordingly, I find it reasonable to adopt the NP rate of 5% on consolidated receipts for the impugned assessment year 2014-15 for the purpose of estimating the profits of the appellant. In view of above the estimated NP @ 6.5% of the gross receipts of Rs. 5,86,34,447/- will work out to Rs. 38,11,239/-. The AO is therefore directed to recompute the income of the appellant by taking profits at Rs. 38,11,239/- as against Rs. 46,90,756/- worked out by applying NP rate @ 8%. The appellant gets a relief of Rs. 8,79,516/- out of the addition made of Rs. 129,61,625/-. The grounds of appeal no. 2 an....