AAC INDIA PVT. LTD,NEW DELHI vs. ITO WARD-1(1), NEW DELHI

This appeal filed by the assessee is directed against the order dated 14.02.2019 passed by ld. CIT(A)-32, New Delhi for the assessment year 2010-11 on the following grounds : “1. That, on facts and circumstances of the case the Ld.CIT(A) has erred in making an addition of Rs. 2,37,048/-.

2. That, the learned CIT(A) in upholding the addition has erred in ignoring the fact that, the assessee has filed complete Balance Sheet together with Profit & Loss account thereby providing details of expenses incurred.

3. That, on facts and circumstances of the case the learned CIT(A) has erred in upholding the order of the assessing officer and applying gross profit@8% of the turnover and thus upholding addition of Rs. 2,37,048/-.

4. That, the order was passed by the Ld. CIT(A) without giving proper opportunity of being heard.” 2. The Assessing Officer was right in estimating profit @ 8% of the turnover, hence, action of the Assessing Officer and first appellate order is confirmed. However, I also observe that the Assessing Officer has made addition to the returned income of assessee Rs.91,480/- and addition of net profit has been added to this amount. When the Assessing Officer is estimating profit @ 8%, the returned income from the same business cannot be added over and above the estimated net profit @ 8%. Therefore, Rs.91,480/- is directed to be deleted in the taxable income of the assessee.