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2012 (5) TMI 53 - ITAT HYDERABADBusiness of retail trade in liquor purchases from the Andhra Pradesh Beverages Corporation Ltd - AO computed the turnover by adopting the profit margin as 27% as per the GOMS No. 184 dated 7.2.2005 of the Govt. of AP and added the difference to the income as suppressed turnover - assessee was unable to produce sale bills - Tribunal directed AO to estimate the net profit at 3% of the purchases or stock put for sale during the year – Held that:- the entire understatement of sales cannot be treated as undisclosed income for the year under consideration - it is well settled law that the best guide for estimation of income after rejecting the books of accounts is either past history of the assessee or any other comparable cases - since the assessee's net profit in the past is between 0.12% to 0.28% of sales the estimation of the net profit at 3% is reasonable – against revenue. Levying interest u/s 234B – assessee contested that the entire purchases are subject to TCS and no advance tax is payable – Held that:- The rate of tax collectible may or may not be equivalent to tax which is ultimately payable by the purchaser,the purchaser has to pay advance tax to make up for this difference - Hence as per the provisions of Section 209 r.w.s. 234B the CIT(A) rightly directed the AO to give credit to the tax collectible u/s.206C, from the tax on the assessed income and compute the short fall in payment of advance tax - against assessee.
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