The Tribunal remanded matter to the AO, as the CIT (A) had observed that the case did not fit into scheme of presumptive taxation as his turnover was well above the turnover limit for presumptive taxation, he had restricted the profits to five per cent. Without analysing the book results vis-a-vis past history and comparable cases to justify the applicability of the correct net profit rate in the case of the assessee. The matter restored to pass assessment de novo after considering the submission and evidence filed on record. (AY. 2018-19)
Mohammad Sidiq Mushtaq Ahmed v. Add. CIT (2023)105 ITR 63 (SN)(Amritsar) (Trib)
S. 144: Best judgment assessment-AO estimating profits at 8 per cent., CIT(A) observed that turnover above turnover limit for presumptive taxation but restricting profits to 5 per cent. Matter remanded back to AO stating that Authorities bound to disprove claim with corroborative documentary evidence after granting assessee adequate opportunity of being heard.