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Income Tax Appellate Tribunal, CUTTACK ‘SMC’
Before: SHRI N.S SAINI
These are appeals filed by the assessee against separate orders of
CIT(A)-1, Bhubaneswar, both dated 6.1.2016, for the assessment years
2008-09 & 2009-2010.
The appeals were fixed for hearing on 8.11.2016 and 4.1.2017, when
none appeared on behalf of the assessee. Hence, the appeals were again
adjourned to 2.2.2017 and notice of hearing was sent to the assessee by
RPAD on 5.1.2017. Today when the case was called for hearing, none
appeared on behalf of the assessee nor any adjournment petition is
2 ITA Nos. 153 & 154/ CTK/ 2016 Asse ssment Years :2 00 8-0 9 & 20 09- 201 0
filed. Therefore, the appeals were heard exparte qua the appellant-
assessee and disposed of considering the submission of ld D.R. and
materials available on record.
In both the appeals, the grievance of the assessee is that estimation
of net profit by the Assessing officer and confirmation by the CIT(A) is not
justified.
I have heard the rival submissions and perused the orders of lower
authorities and materials available on record. In the assessment year
2008-09, the Assessing Officer found that the assessee has shown net profit
of Rs.10,15,560/- on turnover of Rs.1,41,17,480/-, which comes to 7.19%.
The assessee failed to produce books of account, bills and vouchers in
support of the expenditure claimed. Therefore, the Assessing Officer
rejected the book results of the assessee by invoking the provisions of
section 145(3) of the Act and estimated the profit by applying the rate of
9% to the turnover of Rs.1,41,17,480/- and determined the income at
Rs.12,70,573/-.
On appeal, the CIT(A) observed that in assessment year 2010-2011,
the assessee had shown the net profit at 8.77%, in assessment year 2009-
10, the assessee had shown net profit at 8.94%. Hence, he determined
the rate of profit at 8.3% on the turnover of Rs.1,41,17,480/- and
determined the income at Rs.11,71,750/- and accordingly, allowed relief of
Rs.98,822/- to the assessee.
3 ITA Nos. 153 & 154/ CTK/ 2016 Asse ssment Years :2 00 8-0 9 & 20 09- 201 0
Similarly, in assessment year 2009-10, the Assessing Officer found
that the assessee had shown net profit of Rs.8,05,812/- on a turnover of
Rs.90,90,180/-, which comes to 8.94%. Since the assessee failed to
produce books of account, bills and vouchers in support of the expenditure
claimed the Assessing Officer rejected the books of account by invoking the
provisions of section 145(3) of the Act and estimated the net profit at 9%
of the turnover of Rs.90,90,180/- and determined the income at
Rs.8,10,826/-.
On appeal, the CIT(A) observed that the assessee has disclosed net
profit at 8.94% of the turnover. The Assessing Officer estimated the net
profit at 9%. The assessee has not given any reason as to why the profit
disclosed should be considered as reasonable. Therefore, he confirmed the
action of the Assessing Officer.
Before me, no material has been brought on record to controvert the
findings of the CIT(A). Hence, I do not find any good and justifiable reason
to interfere with the orders of the CIT(A) for both the assessment years
under appeal.
In the result, the appeals filed by the assessee are dismissed.. Order pronounced in the open court on 02/02/2017. Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 02/02/2017 B.K.Parida, SPS
4 ITA Nos. 153 & 154/ CTK/ 2016 Asse ssment Years :2 00 8-0 9 & 20 09- 201 0
Copy of the Order forwarded to : 1. The Appellant : Sujata Sahu, Prop. M/s. Baba Granite Cutting & Polishing Industry, Gummagedda, Kashinagar Road, Paralekhemundi. 2. The respondent: ITO, Ward-2, Berhampur 3. The CIT(A)1 Bhubaneswar. 4. Pr.CIT-1, Bhubaneswar. 5. DR, ITAT, Cuttack BY ORDER, 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack