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Income Tax Appellate Tribunal, DELHI BENCH “SMC-I”: NEW DELHI
Before: SHRI P.K.BANSAL
Assessee by : None Department by : Shri Deepak Garg, Sr. DR Date of Hearing 12/07/2016 Date of pronouncement 12/07/2016 O R D E R This appeal has been filed by the assessee against the order of the Ld. CIT(A) dated 01.12.2015. None appeared on behalf of the assessee.
I therefore decided to dispose off the appeal after hearing the Ld. DR.
The assessee has taken as many as eight grounds of appeal. The only issue involved in the appeal filed by the assessee relates to the addition made on account of estimating the net profit.
3. I have heard the Ld. DR and carefully considered the submission made by the Ld. DR. I noted that in this case the AO estimated the net profit of the assessee @ 1% against the net profit shown by the assessee @ .25%. I noted that the AO has not invoked the provision of section 145(3). It is only the provision of section 145(3) which empowers the AO to determine the income of the assesee in the manner as laid down u/s 144. Without invoking the provision of section 145(3) in my opinion the AO does not have any jurisdiction to estimate the net profit of the assesee. In view of this fact I delete the addition of Rs. 7,54,811/- made by the AO by estimating the net profit.
In the result the appeal filed by the assessee is allowed.
Order pronounced in the open court on 12/07/2016.