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Income Tax Appellate Tribunal, DELHI BENCH “SMC-I”: NEW DELHI
Before: SHRI P.K.BANSAL
O R D E R PER P.K. BANSAL, A. M.
This appeal has been filed by the assessee against the order of the Ld. CIT(A) dated 23.11.2015 none appeared on behalf of the assessee neither any application for adjournment was sent even though the notice was sent through registered AD. On the earlier date also none appeared on behalf of the assessee. I therefore proceeded to dispose off the appeal after hearing the Ld. DR.
The only issue involved in the various grounds of appeal taken by the assesee is treating the sum of Rs. 75,46,953/- deposited by the assessee as part of the sales and estimating the income thereon @ 5% and not allowing the credit to the assesee in respect of the net profit shown by the assessee amounting to Rs. 1,56,298/-.
3. I have heard the Ld. DR and carefully considered the submissions made by him. I noted that in this case the assesee has filed the return of income of Rs. 1,53,360/- subsequently it was noticed by the AO that the assessee has deposited a sum of Rs. 75,46,953/- in the ICICI Bank after giving an opportunity to the assessee. The AO treated the said sum tobe the total turn over of the assessee from the business and estimated the net profit @ 5% amounting to Rs. 3,77,347/- after allowing the deduction to the assessee u/s 80C . The total income was assessed at Rs. 3,74,050/-. In my view mistake has been committed by the AO that he did not allow the credit to the aassesee in respect of the income shown by the assesee amounting to Rs. 1,56,298/- from the said very business while estimating the net profit at Rs. 3,77,347/-. The AO should have reduced the net profit by the net profit returned by the assessee amounting to Rs. 1,56,298/-. I accordingly set aside the order of the Ld. CIT(A) and direct the AO to reduce the net profit as estimated by him by Rs. 1,56,298/- which has been returned by the assessee.
Accordingly the appeal of the assessee is partly allowed.
In the result appeal filed by the assessee is partly allowed.
Order pronounced in the open court on 11/07/2016.