M/S. EXL CAREERS,MEERUT vs. ITO, MEERUT

O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the assessee against the order dated 06.02.2015 of learned Commissioner of Income-tax (Appeals)-Meerut for the Assessment Year 2009-10. 2. The assessee has raised the following grounds:- “

1. That no notice U/s 143(2) and 142(1) was served upon the assessee and assessment framed on incorrect address. Hence, assessment U/s 144 is bad in law and CIT(A) is also in error confirming the order U/s 144 of I.T. Act, 1961. Therefore, order framed by the A.O. is bad in law and against the principle of natural justice.

2. That without prejudice to the ground no.1 the addition of Rs. 17,97,653/- on account of sundry creditors is against the provision of section 68, because most of the payments was opening balance and A,0. has not provide any opportunity being heard and CIT(A) has not made any Page 2 of 4 finding before confirming the addition. Hence, order framed by the A.O. as well as CIT(A) is bad in law and without any basis. '3. That without prejudice to ground no. 1 the A.O. has not justified in estimation net profit rate @ 8% of the total receipts. The assessee has filed his income-tax return showing total income on the basis of books of accounts which was duly audited by Auditor. Therefore, A.O. has not given any justification to adopt net profit rate @ 8% without rejecting books of accounts. Hence, estimation of profit @ 8% is without any basis and not according to law and CIT(A) has not given any finding on this issue.

4. That without prejudice to ground no. 1 A.O. has treat the status of the assessee as firm but he has not allowed interest and remuneration U/s 40b of I.T. Act and CIT(A) has not made any comments on this issue. Therefore, order of A.O. is incomplete and silence of CIT(A) is improper to dismiss the appeal.”

3. This appeal is filed by assessee against the order of CIT appeals order dated 06/02/2015. The brief facts of the case is that assessee is a partnership firm engaged in the business of franchisee of M/s Franklin Inst of air hostesses training. It filed its return of income for Rs. 1 94180/- on 29 9/2009. During the course of assessment proceedings, none appeared before the Ld. assessing officer, hence he framed assessment under section 144 of the income tax act on 30/11/2011. Assessee has outstanding creditors of Rs. 1 797653/-which were added to the return income of the assessee. The gross receipt of the assessee was Rs. 1 055 8113/-and 8% of the gross receipt was also added to the income of assessee amounting to Rs. 8 29524/-. Therefore, total income was computed at Rs. 2 821360/-. Against this, assessee filed appeal before CIT (A) who in turn dismissed the appeal of assessee confirming assessed income. Against this, assessee is in appeal before us.