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Facts
The assessee appealed against an order concerning undisclosed business receipts. The Assessing Officer (AO) applied a net profit rate of 12% on these undisclosed receipts amounting to Rs. 1,05,10,500/-.
Held
The assessee contended that their net profit rate, based on past data for disclosed income, was 7.8%. The Ld. DR could not rebut this contention.
Key Issues
The sole issue was the net profit rate applicable to undisclosed business receipts.
Sections Cited
250 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, PATNA BENCH, VIRTUAL HEARING AT KOLKATA
Before: SRI SANJAY GARG & SHRI SANJAY AWASTHI
M/s. Manish Kumar ………….. Appellant Shivpuri, Anisabad, Patna Bihar-800001. (PAN: AVBPK7282L) Vs. ACIT, Circle-4, Patna .............. Respondent Appearances: Appellant represented by: None (adjournment petition filed) Respondent represented by: Shri Ashwani Kr. Singal, JCIT Date of concluding the hearing : 15.01.2025 Date of pronouncing the order : 15.01.2025 ORDER
Per Sanjay Garg, Judicial Member:
The captioned appeal has been preferred by the assessee against the order dated 18.04.2024 of the Ld. Commissioner of Income Tax (Appeal), Addl/JCIT(A), Jodhpur [hereinafter referred to as ld. ‘CIT (A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2016-17.
The sole issue involved in this appeal is relating to the net profit rate on the undisclosed business receipts of the assessee.
Admittedly, the assessee did not disclose the receipt of Rs.1,05,10,500/- in the return of income. The Assessing Officer (AO) applied the net profit rate @ 12% on the said undisclosed receipts. However, the case
I.T.A. No.: 448/PAT/2024 M/s. Manish Kumar, AY : 2016-17 of the assessee is that the assessee in respect of the disclosed income has duly proved that the net profit rate of the assessee comes at 7.8% of the receipt. The assessee in this respect has also relied on the past data to show that the average net profit rate of the assessee is to that extent only. The Ld. DR could not rebut the aforesaid fact that the net profit rate of the assessee from its disclosed business receipts comes to 7.8% only. Considering the above stated facts on the file, the AO is directed to restrict the net profit rate on the undisclosed receipt of the assessee of Rs.1,05,10,500/- @ 7.8%. The appeal of the assessee is treated as partly allowed.