ABINASH NAIK,SAMBALPUR vs. THE INCOME TAX OFFICER, WARD-2(1), SAMBALPUR, SAMBALPUR

Shri P.K.Mishra, ld AR appeared for the assessee and Shri Vijaya Singh, ld Sr DR appeared for the revenue.

It was submitted by ld AR that both the assessment order and first appellate orders are exparte. It was the submission that the assessee is in the business of petroleum. The Assessing Officer has estimated the income of the 2 assessee at 8%. It was the submission that the petroleum business does not give more than 1% profit. It was the prayer that the income of the assessee may be estimated at 1%.

In reply, ld Sr DR submitted that the assessee has not produced details before the AO and ld CIT(A). He submitted that minimum 2% profit may be estimated in this line of business.

We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee has not provided all the details before the AO. Consequently, the Assessing Officer has estimated the income of the assessee at 8%. The submissions of ld AR, is that in petroleum business the estimation of profit is in higher side. However, as mentioned by ld Sr DR, the Assessing Officer is directed to estimate the income at 2% as against 8% done in petroleum business.