What did the Tribunal hold?

The Tribunal found that the CIT(A) had estimated the profit at 4% of total turnover. Considering the Assessing Officer's estimation of 2.07% in the preceding year, the Tribunal directed the adoption of a Gross Profit rate of 2.10% for the current year.

The assessee, Ms. Sheetal Arora, runs a proprietorship business dealing in dry fruits and kirana items. The appeal concerns the assessment year 2007-08.

What were the issues?

The key issue was the correctness of the profit estimation by the CIT(A) at 4% of total turnover.

Ms. Sheetal Arora, New Delhi vs JCIT | ITAT Delhi 2016

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-3’, NEW DELHI

Before: SHRI J. SUDHAKAR REDDY

For Appellant: Adv. And Sh.V.Raja Kumar, Adv

ORDER This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)-XXV, New Delhi pertaining to the A.Y. 2007-08 dated 13.06.2014.

The assessee is carrying on the business of wholesale trade in dry fruits and other kirana items in her proprietorship concern under the name and style of M/s Sheetal Overseas.

The sole point for consideration is whether the estimation of profit by the Ld.CIT(A) at 4% of the total turnover is correct. After hearing rival contentions I find that the Assessing Officer in the assessee’s own case for the immediately preceding Assessment Year has estimated the gross profit at 2.07%. I am of the view that interest of justice would be met if the GP rate is estimated at 2.10% during the current Assessment Year. The Assessing Officer is directed to adopt the gross profit accordingly. In the result the appeal of the assessee is allowed in part

In the result, the appeal by the assessee stands partly allowed. Pronounced in the Open Court on 29th June, 2016.

MS. SHEETAL ARORA,NEW DELHI vs. JCIT, NEW DELHI

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What were the issues?

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