SUJATA SAHU,GAJAPATI vs. ITO, WARD-2, BERHAMPUR

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.

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.

of net profit by the Assessing officer and confirmation by the CIT(A) is not

justified.

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/-.

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

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/-.

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.

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.

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