Vatsalabai Karbhari Deore Vs ACIT (ITAT Pune)
ITAT Pune remands poultry farm case—best judgment u/s 144 & 8% profit estimation set aside for fresh adjudication
Assessee, engaged in the business of poultry farming under the name M/s Akash Poultry Farm, had declared income of ₹27.62 lakh in her e-return for AY 2014-15. The case was selected for scrutiny; however, due to non-compliance with notices u/s 143(2) & 142(1), AO framed best judgment assessment u/s 144, disallowing interest of ₹57.96 lakh & estimating net profit @ 8% on turnover after allowing the declared 7.35% gross profit, thereby making further addition of ₹21.62 lakh.
CIT(A), NFAC confirmed both disallowances since no supporting details were filed. Before Tribunal, the Assessee’s counsel contended that books were duly audited, GP rate was consistent with earlier years, & the 8% estimation was excessive. He also argued that the interest expenditure was genuinely incurred for business purposes.
Considering that no effective opportunity was availed before AO or CIT(A), Tribunal held that in the interest of justice the Assessee should be allowed one more chance to substantiate her claim. The impugned order was set aside, & the case remitted to AO for fresh adjudication with directions to afford reasonable opportunity & for the Assessee to cooperate diligently.
