DHARAM NATH,YAMUNA NAGAR vs. INCOME TAX OFFICER WARD-1, YAMUNA NAGAR

Aforesaid appeal by assessee for Assessment Year (AY) 2010- 11 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 19-02-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 r.w.s. 147of the Act on 28-11-2017. The registry has noted delay of 143 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of condonation petition which is accompanied by an affidavit of the assessee. It has been submitted that delay has occurred due to the fact that communications were sent on the e-mail address of assessee’s counsel and the assessee was not aware of impugned order.

From case records, it emerges that the assessee is a small labor contractor. The assessee did not file return of income. The case was reopened on the ground that the assessee received contract receipts of Rs.79.40 Lacs from Haryana Distillery, Yamuna Nagar. During reopening proceedings, the assessee declared profit rate of 12.375% on receipts of Rs.16 Lacs. The Ld. AO applied same rate of profit on balance receipts of Rs.63.74 Lacs and made addition of Rs.7.88 Lacs. The Ld. CIT(A) confirmed the same for want of any representation from the assessee. Aggrieved, the assessee is in further appeal before Tribunal.

Keeping in mind the principles of natural justice and considering the background of the assessee, I admit the appeal of the assessee. On merits, the only prayer of Ld. AR is fair estimation of profit element. Considering the fact that the assessee is a small labor contractor, I direct Ld. AO to apply profit rate of 3% on balance receipts of Rs.63.74 Lacs and re-compute the income of the assessee.