Tribunal held that though the Assessing Officer had applied the rate of 12 per cent. and the National Faceless Appeal Centre had reduced it to 5 per cent., no cogent reason had been given for such estimation. The past history or trend of the assessee had not been considered by the authorities. Therefore, the application of a net profit rate of 2.5 per cent. on the gross receipts would meet the ends of justice inasmuch as any leakage of revenue would be covered and the assessee’s non-production of books of account and vouchers would also be taken care of. Followed, CIT Central and United Provinces v. Laminarain Badridas (1973) 5 ITR 170 (PC), Berger Paints India Ltd v.CIT (2004) 266 ITR 99 (SC) (AY.2013-14)
New Truck Operators Union v. ITO (2022) 99 ITR 522 (Chd) (Trib)
S. 144 : Best judgment assessment-Failure to produce vouchers and books of account-Not owning the Trucks-Estimation of profit-Failure to produce books of account-Assessing officer estimating at 12 Per Cent on gross receipts-CIT(A) reducing to 5 Per Cent-Tribunal applied 2.5 Per Cent of net profit rate on gross receipts. [S. 44AB, 143(3), 145(3)]