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2012 (8) TMI 125 - AT - Income TaxAddition made on account of liquor trade with reference to the incriminating documents found during survey - CIT(A) deleted the addition - Held that:- Even if books of account are found to be not reliable, the maximum profit which can be determined should be based as per the verdict of Hon'ble Jurisdictional High Court in the case of Badriprasad Bhagwandas and Co.(1994 (10) TMI 268 - MADRAS HIGH COURT) according to which sales is arrived at 2.5 % of the license fee and net profit is to be worked out at 5 % of the sales. After considering the detailed submissions of the assessee, the CIT(A) keeping in view the liquor trade of assessee’s business. As the books of account so found were not proper books and the same was written by the 5th Class passed accountant of the assessee - while taking the figures shown in alleged documents, the AO did not bother to test check as to whether the total income extrapolated from such capital was at all corroborated by any evidence or even by kachcha accounts. It was also observed that the Assessing Officer adopted such extrapolation even did not maintain a consistent stand of the assessment years involved - the affidavit filed before the lower authorities by assessee depicts wherein various expenditure in the nature of bardana expenses, packing expenses, shop rent, salary of salesmen, Manager, helper and chowkidar, office expenses, transportation and travelling expenses, transportation and travelling expenses, brokerage, telephone and mobile expenses etc. were not taken care of while arriving at the net profit of the assessee as shown in the impounded rough ledger - it was only on the basis of noting in a rough ledger that the Assessing Officer has jumped to the conclusion that the assessee has earned this much of profit - no infirmity in the order of CIT(A) for upholding profit in case of liquor business as per verdict of Badriprasad Bhagwandas and Co - against revenue.
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