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The Tax Publishers2013 TaxPub(DT) 0265 (Del-Trib) : (2012) 020 ITR (Trib) 0001 INCOME TAX ACT, 1961 --Accounting method--Estimation of income Low net profit--Assessing officer found that the net profit shown was very low, as retail traders generally allow 10 per cent discount on maximum retail price printed on packet of footwear and therefore, adopted net profit ratio at 5 per cent of net sales. Commissioner deleted the addition observing that assessing officer had estimated profit without any proper reasons nor any defect was pointed. *Held:* Was justified as assessing officer did not support the addition on the basis of any comparative case to show unreasonableness nor any defect was pointed in the details furnished by assessee. Income Tax Act, 1961 Section 145 IN the ITAT, Delhi 'G' Bench U. B. S. Bedi, J. M. & S. V. Mehrotra, A.M. ITO v. Sai International I.T.A. No. 1406/Del/2012 A.Y. 2007-08 28 September, 2012 Department by : Neeraj Kumar Assessee by : J. S. Kochar & Udaybir Singh Kochar ORDER *S. V. Mehrotra, A.M.* This appeal filed by the Department is directed against the order of the learned Commissioner (Appeals) dated 5-1-2012 for the assessment year 2007-08. 2. The assessee, in the relevant assessment year, was manufacturing footwear and supplying its products to the retailers at the lower end of the market. It had filed its return of income declaring income of Rs. 2,49,031. The assessing officer has referred to the order-sheet entries at page 1 of the assessment order as under : 3-11-2009 Part details filed 11-11-2009 Part details filed 20-11-2009 Part details filed 3-12-2009 Part details filed 10-12-2009 Part details filed SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 0265 (Del-Trib) : (2012) 020 ITR (Trib) 0001

INCOME TAX ACT, 1961

--Accounting method--Estimation of income Low net profit--Assessing officer found that the net profit shown was very low, as retail traders generally allow 10 per cent discount on maximum retail price printed on packet of footwear and therefore, adopted net profit ratio at 5 per cent of net sales. Commissioner deleted the addition observing that assessing officer had estimated profit without any proper reasons nor any defect was pointed. Held: Was justified as assessing officer did not support the addition on the basis of any comparative case to show unreasonableness nor any defect was pointed in the details furnished by assessee.

Income Tax Act, 1961 Section 145

IN the ITAT, Delhi 'G' Bench

U. B. S. Bedi, J. M. & S. V. Mehrotra, A.M.

ITO v. Sai International

I.T.A. No. 1406/Del/2012

A.Y. 2007-08

28 September, 2012

Department by : Neeraj Kumar

Assessee by : J. S. Kochar & Udaybir Singh Kochar

ORDER

S. V. Mehrotra, A.M.

This appeal filed by the Department is directed against the order of the learned Commissioner (Appeals) dated 5-1-2012 for the assessment year 2007-08.

2. The assessee, in the relevant assessment year, was manufacturing footwear and supplying its products to the retailers at the lower end of the market. It had filed its return of income declaring income of Rs. 2,49,031. The assessing officer has referred to the order-sheet entries at page 1 of the assessment order as under :

3-11-2009 Part details filed

11-11-2009 Part details filed

20-11-2009 Part details filed

3-12-2009 Part details filed

10-12-2009 Part details filed