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Facts
The assessee filed twin appeals against NFAC/CIT(A) orders for A.Y. 2012-13 and 2014-15. The Assessing Officer had rejected the assessee's books of accounts, which declared a low net profit, and enhanced the net profit rate to 2%, later restricted to 1% by the CIT(A). The assessee did not appear during the tribunal proceedings.
Held
The tribunal, noting the assessee's non-appearance and inability to provide details, held that a lump sum net profit rate of 0.75% would be just and proper. This estimation was made based on the unique facts of the case and should not be considered a precedent.
Key Issues
Rejection of books of accounts and estimation of a suitable net profit rate for assessment purposes.
Sections Cited
Section 143(3)
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, JM: These assessee’s twin appeals for assessment years 2012-13 & 2014- 15 arise against National Faceless Appeal Centre (NFAC)’s DIN and order no. ITBA/NFAC/S/250/2022-23/1050745603(1), dated 14.03.2023, in case no. CIT(A), Delhi-20/10521/2015-16 for A.Y. 2012-13 and Commissioner of Income Tax (Appeals)-20, New Delhi’s order dated 22.03.2019 in case no. 10092/2017-18 for A.Y. 2014-15; in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’, respectively.
Cases called twice. None appears at the assessee’s behest. He is accordingly proceeded ex parte. 2. It emerges during the course of hearing with the able assistance from the Revenue’s side that the Assessing Officer herein had rejected the assessee’s books declaring net profit (NP) @ 0.17% for A.Y. 2012-13; and 0.57% for A.Y. 2014- 15, thereby enhancing the same @ 2%, which has been restricted to 1% only, in the learned CIT(A)’s identical lower appellate discussion.
Faced with this situation and in the light of fact that the assessee could not plead and prove all the relevant details in the lower proceedings, the tribunal is of the considered view that a lump sum net profit rate of 0.75% only would be just and proper with the rider that the same shall not be treated as a precedent. The assessee’s computation shall follow as per law. It is made clear before parting that the impugned estimation has been made in the peculiar facts involved herein only and in absence of any corresponding comparable in both the lower proceedings.
These assessee’s twin appeals are partly allowed in above terms. A copy of this common order be placed in respective case files.
Order pronounced in open court on 19.12.2024.