IN INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER IT No.472/CT K/2013 Assess ment Year :2009-2010 Smt. Gudiwada Rajya Lakshmi, Vs. ITO, Rayagara Ward, Rayagara At: J.K.Road, Rayagara, PAN/GI R No. AJRPR 2481 G (Appellant) .. ( Respondent) Assessee by : Shri J.M.Pattnaik Revenue by : Shri Suvendu Dutta, DR Date of Hearing : 19 /10/ 2016 Date of Pronouncement : 19 /10/ 2016 ORDER This is appeal filed by assessee against order of CIT(A)-Berhampur, dated 18.9.2012, for assessment year 2009-2010. 2. sole issue involved in this appeal is that ld CIT(A) erred in confirming action of Assessing Officer in estimating income from ginning and pressing of cotton, sale of cotton seeds and cotton link @ 10% of total turnover of Rs.1,40,28,331/-. 3. I have heard rival submissions and perused materials available on record. In instant case, Assessing Officer observed that assessee failed to produce books of account and vouchers for expenses claimed in profit and loss 2 I T No . 4 7 2 / C T K / 2 0 1 3 s s es s m e n t Y e r : 2 0 0 9 - 2 0 1 0 account and, therefore, he rejected book results of assessee and estimated income at 10% of total turnover of Rs.1,40,28,331/-, which was confirmed in appeal by ld CIT(A). 4. At time of hearing, ld A.R. of assessee submitted that as per provisions of section 44AF of Act, in case of assessee engaged in retail trade in any goods, whose turnover does not exceed Rs.40 lakhs during year, sum equal to five percent of total turnover in previous year on account of such business shall be deemed to be profits and gains of such business chargeable to tax under head Profits and gains of business or profession . He submitted that since books results of assessee was rejected, therefore, it would be appropriate to estimate income of assessee @ 5% as provided in section 44AF of Act. 5. On other hand, ld D.R. did not seriously object to above submissions of ld A.R. of assessee. 6. `In above facts and circumstances of case and considering paper book filed by assessee, wherein, assessee has filed profit and loss account for year ending 31.3.2007 and 31.3.2008, which are relevant to assessment years 2007-08 and 2008-09 being immediately preceding assessment years to year under consideration, it is observed that assessee had shown net profit @ 1.41% for assessment year 2007-08 and net profit @ 1.54% for assessment year 2008-09, 3 I T No . 4 7 2 / C T K / 2 0 1 3 s s es s m e n t Y e r : 2 0 0 9 - 2 0 1 0 which was accepted by department under section 143(1) of Act. Therefore, I find that submission of ld A.R. of assessee that in present year, income should be estimated @ 5% of total turnover of assessee as reasonable and justified. I, therefore, set aside orders of lower authorities and direct AO to compute income of assessee for year under consideration @ 5% of total turnover of rs.1,40,28,331/- and allowed grounds of appeal in part. 7. In result, appeal filed by assessee is partly allowed. Order pronounced in open court on 19 /10/2016 in presence of parties. Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 19 /10 /2016 B.K.Parida, SPS Copy of Order forwarded to : 1. appellant :Smt. Gudiwada Rajya Lakshmi, At: J.K.Road, Rayagara, 2. Respondent. ITO, Rayagara Ward, Rayagara 3. CIT(A), Berhampur 4. CIT , Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. BY ORDER, //True Copy// ASST.REGISTRAR, ITAT, Cuttack Gudiwada Rajya Lakshmi v. ITO, Rayagara Ward, Rayagara