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2014 (3) TMI 1056 - AT - Income TaxEstimation of profit - wine business - Held that:- Profit in case of business in Indian made foreign liquor has to be estimated at 5% of the purchases made by the assessee. Therefore, following the decision of the ITAT Hyderabad bench in Income Tax Officer, Ward-1, Nalgonda Versus Ravindra Reddy, Chander Rao, Saidulu Narsing, Sridhar Reddy E., Raju Gurram, Bal Reddy Mekala, and others [2012 (5) TMI 699 - ITAT HYDERABAD], we set aside the order of the CIT(A) and direct the assessing officer to estimate the profit from the wine business of the assessee by applying the rate of 5% of the purchases made net of all other deductions. The assessing officer should also bear in mind that in no case the income determined should be below the income returned.
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