JAISWAL PLASTIC TUBES LTD,HOWRAH vs. ACIT, CIRCLE, BALASORE, BALASORE

It was submitted by the ld. AR that the assessee is in the business of manufacturing of PVC Pipes. It was the submission that the business of the assessee has been closed and consequently the assessee had not been able to represent before the AO or the ld. CIT(A). It was the submission that the assessee had disclosed an NP of 0.48% in the relevant assessment year and the AO had after rejection of the books of accounts of the assessee estimated the income of the assessee at 1.5% of the turnover. It was the prayer that the estimation adopted by the AO is on the higher side and the same may be reduced. It was the submission 2 that the comparative NP could not be produced because the business of the assessee had been stopped.

In reply, the ld. Sr.DR submitted that it is the duty of the assessee to substantiate its return. The assessee having failed to substantiate his return had produced the details before the lower authorities. The addition as made by the AO and as confirmed by the CIT(A) is liable to be upheld.

I have considered the rival submissions. Admittedly, the business of the assessee has been stopped and no purpose would be served by restoring the issue to the file of the AO for readjudication. It is also an admitted fact that the comparative NP of the assessee cannot be considered because the business of the assessee has stopped. In these circumstances, considering the fact that the business of the assessee has stopped and considering the fact that the assessee has disclosed NP of 0.48% for the relevant assessment year, I am of the view that the NP of the assessee should be fixed at 0.75% and I do so.

In the result, appeal of the assessee is partly allowed. Order dictated and pronounced in the open court on 13/04/2023. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 13/04/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : अऩीऱाथी / The Appellant- 1. Jaiswal Plastic Tubes Ltd. 65, Grand Trunk Road, North Salkia, Howrah (W.B) प्रत्यथी / The Respondent- 2. ACIT, Circle Balasore आयकर आयुक्त(अऩीऱ) / The CIT(A), 3.