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Judgment
This assessee’s appeal for assessment year 2017-18, arises against order of National Faceless Appeal Centre/ learned Commissioner of Income Tax (Appeals), [in short, the “CIT(A)”], Delhi, in DIN & Order No : ITBA/NFAC/S/250/2025-26/1081443539(1) dated 04.10.2025 involving proceedings under section 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It transpires during the course of hearing that the assessee/appellant raises its sole and substantive ground directed against both the lower authorities’ respective findings adding its sundry credits of Rs.38,18,171/- as unexplained; in assessment order dated 31.12.2019 and restricted to 10% profit estimation in the lower appellate discussion.
That being the case, it is crystal clear that the assessee principal business of various job works and other related activities is not in dispute. There is no further quarrel that the impugned profit estimation @10% has nowhere discussed the corresponding segmental results in open market as well. Be that as it may, the tribunal finds in this backdrop that the impugned GP estimation @10% as a bit on the higher side and deems appropriate to restrict the same @5% which would meet the ends of justice with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law. Partly accepted in very terms.
So far as assessee’s assessment under section 115BBE is concerned, we quote S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) that the impugned statutory provision would come into effect on the transaction done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under the normal provision as per law.
In the result the appeal of the assessee is partly allowed.