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Income Tax Appellate Tribunal, CUTTACK
Before: SHRI N.S SAINI
This is an appeal filed by the assessee against the order of CIT(A)-2,
Bhubaneswar, dated 24.10.2016, for the assessment year 2010-2011 .
The sole issue involved in this appeal is that the ld CIT(A) was not
justified in estimating the income of the assessee by applying rate of 2.5%
of the turnover of Rs.9,10,79,422/-.
I have heard the rival submissions and perused the orders of lower
authorities and materials available on record. In the instant case, the
undisputed facts are that the Assessing Officer rejected the books of
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account of the assessee u/s.145(3) of the Act and thereafter determined
the profit of the business of the assessee by applying rate of 5% on the
gross turnover of Rs.9,10,79,422/- and determined the income at
Rs.45,53,971/-.
On appeal, the CIT(A) estimated the profit of the assessee at 2.5%
of the gross turnover and allowed relief of Rs.22,76,985/- to the assessee.
Before me, ld A.R. has not challenged the rejection of books of
account of the assessee. The only submission of ld A.R.of the assessee is
that the profit of the assessee should be estimated at 1.5% and not at 2.5%
as done by the CIT(A). He submitted that before the CIT(A), the assessee
has filed a chart showing income accepted by the department u/s.143(3)
of the Act at 1.39% in the assessment year 2009-10, 1.85% in the
assessment year 2008-09 and 1.04% in the assessment year 2007-08. He
submitted that at best the income may be determined by applying the rate
of 1.85% and not at 2.5% done by the CIT(A).
On the other hand, ld D.R. fully justified the order of the CIT(A).
I find that the CIT(A) after considering the submission of ld A.R. of
the assessee and considering the past accepted results by the department
estimated the income by applying the rate of 2.5% to the gross turnover
of the assessee. I am of the considered opinion that the estimation of
income of the assessee in the present year by applying rate of 2.5% cannot
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be said to be highly excessive keeping in view the past accepted results of
the assessee. I, therefore, find no good and justifiable reason to interfere
with the order of the CIT(A), which is hereby confirmed and dismiss the
ground of appeal of the assessee.
In the result, the appeal filed by the assessee is dismissed.. Order pronounced in the open court on 26/05/2017 in the presence of parties. Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 26/05/2017 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Shri Ranjit Kumar Badjena, GA Plot No.58, Gayatri Vihar, Chandrasekharpur, Bhubaneswar. 2. The Respondent. DCIT, Circle 2(2), Bhubaneswar 3. The CIT(A)-2, Bubaneswar. BY ORDER, 4. Pr.CIT-2, Bhubaneswar. SR.PRIVATE SECRETARY 5. DR, ITAT, Cuttack ITAT, Cuttack 6. Guard file. //True Copy//
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Date Initial 1. Draft dictated on 23/05/17 Sr.PS 2. Draft placed before author 23/05/17 (dictation pad has Sr.PS been enclosed along with original file) 3. Draft proposed & placed before the AM second member 4. Draft discussed/approved by Second AM Member. 5. Approved Draft comes to the Sr.PS/P Sr.PS/PS S 6. Kept for pronouncement on Sr.PS 7. File sent to the Bench Clerk Sr.PS 8. Date on which file goes to the H.C. 9. Date on which file goes to the SPS 10. Date of dispatch of Order.