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Income Tax Appellate Tribunal, DELHI ‘SMC’ BENCH, NEW DELHI
Before: SHRI H.S. SIDHU
At the time of hearing, Ld. Counsel for the assessee stated that the issue in dispute has already been adjudicated and decided by the ITAT, SMC, New Delhi Bench in assessee’s own vide order dated 19.1.2018 passed in (AY 2009-10). In this regard, he draw my attention towards the findings of the Bench at page no. 4-5 vide para no. 9 of the order and requested that in view of the aforesaid order dated 19.1.2018, AO be directed to adopt the net profit @5% on the undisclosed turnover of the assessee.
On the contrary, Ld. DR relied upon the impugned order. 4. I have heard both the parties and perused the orders of the revenue authorities alongwith the ITAT, SMC, New Delhi Bench decision dated 19.1.2018 passed in assessee’s own in ITA No. 5540/Del/2015 (AY 2009- 10). I find that the Tribunal vide its aforesaid order dated 19.1.2018 vide para no. 9 has held as under:-
“9. I have considered the rival arguments made by both the sides, perused the orders of the authorities below and paper book on behalf of the assessee. A perusal of the material available on record shows that the assessee has not declared turnover to the tune of Rs. 3,93,45,115/- which were routed through the two savings bank accounts, which were not declared in the Balance Sheet. I find the Assessing Officer applied net profit rate of 8% after considering the various withdrawals from the said bank accounts which has been upheld by the Ld. CIT(A). It is the submission of the Ld. Counsel for the assessee that the adoption of the profit rate of 8% on such turnover is very excessive and very high and the assessee has not earned such huge income. It is the submission of the Ld. DR that the lower authorities have already adopted the reasonable profit rate of 8%. I find the assessee on his disclosed turnover has declared net profit rate of 2.98%. It is not understood as to how any why the transactions routed through the two savings bank accounts remained to be included in the regular turnover. I find the Assessing Officer after considering the explanation of the assesseee that the various withdrawals shown in the bank accounts are expenses incurred for making such sale has adopted 8% net profit as against the normal rate of profit of 2.89% shown in the declared turnover. Considering the totality of the facts of the case and in the interest of justice, I am of the considered opinion, that the adoption of net profit rate of 5% on such undisclosed turnover of Rs. 3,93,45,115/- as against 8% profit rate adopted by the Assesing Officer and upheld by the CIT(A) will meet the ends of justice. I hold and direct accordingly. The ground raised by the assessee is accordingly partly allowed. 4.1 Respectfully following the aforesaid precedent, I direct the Assessing Officer to adopt the net profit of 5% on such undisclosed turnover of Rs. 3,94,26,618/- as against 8% profit rate adopted by the Assessing Officer and upheld by the CIT(A) will meet the ends of justice. I hold and direct accordingly. The ground raised by the assessee is accordingly partly allowed.
ITA No. 5542/Del/2015 (AY 2011-12) 5. Following the consistent view as taken in (AY 2010-11) as aforesaid, the (AY 2011-12) is also partly allowed with the similar directions, as given in assessment year 2010-11, as aforesaid. 6. In the result, both the Appeals of the Assessee are partly allowed. The order pronounced on 03.02.2020.