Assessee is\u00a0 engaged in business of trading of food grains.\u00a0 Assessing Officer held\u00a0 that assessee had disclosed net profit at rate of 1.94 per cent for year under consideration in comparison to preceding year at 11.94 per cent. He\u00a0 computed average net profit percentage of three years which worked out to 9.39 per cent and finally he computed business income at rate of 9.39 per cent on turnover and assessed total income accordingly. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that\u00a0 in relevant year is\u00a0 engaged in business of wholesale food items and therefore profit margin based on turnover\/volume would be lower and Assessing Officer compared same with net profit rate of earlier years, where assessee was engaged in retail trade and profit margin differed.\u00a0 Matter is remanded back to the file of the AO to adjudicate afresh. (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 145 : Method of accounting-Whole sale food items-Estimation of net profit-Matter is remanded back to Assessing Officer to adjudicate afresh. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50612","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dak","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50612"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50612\/revisions"}],"predecessor-version":[{"id":50613,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50612\/revisions\/50613"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}