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2012 (8) TMI 150 - AT - Income TaxTrading addition on account of suppression of sales - assessee, deriving income from the business of country liquor - CIT(A) provided partial relief - assessee contesting estimation made - Held that:- It is seen that the CIT(A) has already granted relief on two counts, firstly by estimating the total sales at Rs.1.3 crores against estimation of Rs.1.4 crores estimated by the AO and secondly the net profit was directed to be at 5% on the reduced estimation, especially when no sale vouchers were prepared by the assessee and rejection of books of accounts of the assessee was upheld. We find no infirmity in the conclusion drawn by the CIT(A). It is affirmed - Decided against assessee. Extinguishment of liability - addition u/s 41(1) - Held that:- Admittedly, from the AY 2002-03 the assessee had been showing these liabilities in the books of accounts and in spite of laps of mandatory period of three years after which debt cannot be recovered in the absence of part payment or acknowledgement and the assessee has also changed line of business i.e. from India made foreign liquor to country liquor and no payment of any sort was made to any of the parties mentioned in the assessment order, one undisputed fact is emerging that there is no intention on behalf of the assessee to repay the impugned amounts or any part thereof. Hence we find no merit in this ground - Decided against assessee. See CIT vs Karamchand Thapar & Others (1996 (8) TMI 2 - SUPREME COURT) Addition u/s 40A(3) - cash purchases - assessee contended that said purchases were made pursuant to the transfer permit issued by the excise department - Held that:- This is an undisputed fact that the payments were made at the directions of the excise authorities as the situation was not within the control of the appellant. Therefore, CIT rightly deleted aforesaid addition - Decided in favor of assessee.
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