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 I.T.A No. 2846/Ahd/2017       A.Y. 2014-15                       Page No      3
Jain Bulk Pack vs. ITO

5. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has partly allowed the appeal of the assessee by restricting the addition to 0.25% as against 0.5% estimated by the assessing officer.

6. We have heard the rival contention on this issue. During the course of assessment, the assessing officer has estimated the net profit of the assessee at 0.5% on account of low turnover and increase of expenses compared to the preceding year. In this regard, the assessee has explained that the turnover of the assessee has been decreased from 92 crore to 29 crore, however, fixed nature of expenses remained same and because of fixed cost there was fall in the gross profit. It is also brought to our notice that in the earlier year, the net profit @ 0.16% was accepted by the assessing officer in the assessment completed u/s. 143(3) of the act. It is also contended that all the major income and expenses along with supporting materials were produced before the assessing officer however the same was not objectively considered by the assessing officer. Considering the above facts and circumstances, we are of the view that it will be reasonable to estimate the net profit of the assessee @ 0.16% of the turn-over. Accordingly, the assessing officer is directed to estimate the net profit @ 0.16% as against 0.25% estimated by the ld. CIT(A), therefore, this ground of appeal of the assessee is partly allowed.