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2016 (6) TMI 1150 - AT - Income TaxEstimation of N.P - profit in case of business in Indian made foreign liquor - Held that:- In view of order of the coordinate bench of the Tribunal in T. Appalaswamy Versus ACIT Circle-5 (1) Visakhapatnam [2014 (3) TMI 1056 - ITAT VISAKHAPATNAM ] we set aside the order passed by the Ld. Commissioner and we direct the A.O. to restrict the estimation at 5% on total purchases net of all deductions. Opening capital unexplained - Held that:- The case of the assessee is that in the past 20 years, he has been carrying out various small businesses and he is able to save some money, he has not filed any returns, because his earnings are below taxable limit. Out of the savings, the assessee introduced the capital. The assessee is not able to substantiate his case neither before the A.O. nor before the CIT(A). Now before us, he has submitted that he has quantified all the details and prayed for one more opportunity to substantiate his case before the A.O. By considering the request made by the assessee and also keeping in view of the facts and circumstances of the case, we are of the opinion that in the interest of justice, one more opportunity should be given to the assessee. In view of the above, we set aside the order passed by the Ld. Commissioner and remit the matter back to the A.O., in respect of opening balance as well as source of initial purchases made by the assessee of ₹ 3,28,351/- and direct the A.O. to decide the issue de-novo in accordance with law after being given an opportunity of being heard to the assessee. Unexplained expenditure - Held that:- A.O. has not satisfied with the explanation given by the assessee on the ground that the assessees are not able to substantiate the stand taken by them and additions were made. CIT(A) confirmed the same. After hearing both the sides by considering the request of the Ld. Counsel for the assessee, we are of the opinion that one more opportunity should be given to the assessee in the interest of justice. Accordingly, we set aside the order passed by the CIT(A) and remit the matter back to the A.O., in respect of opening balance as well as source of initial purchases made by the assessee and direct the A.O. to decide the issue de-novo in accordance with law after being given an opportunity of being heard to the assessee.
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