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2012 (9) TMI 354 - ITAT, HYDERABADEstimation of the net profit from sale of liquor at 3% as directed by CIT(A) - DR contended that even in case of exclusive wines, the ITAT recently has directed for estimation of profit at 5% - non-verifiable nature of sales admitted in the return due to non production of sale bills - Held that:- As the entire understatement of sales cannot be treated as undisclosed income of the assessee 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 - In the present case, admittedly the assessee is not an exclusive wine shop and it also runs restaurant along with Bar and food items are sold along with liquor. Therefore, the profit in case of the assessee cannot be same as in the case of exclusive wine shop - Thus, considering the fact that the sale of food items are very less compared to sale of liquor and beer and also considering the fact that the ITAT has also in some cases directed for estimation of net profit in case of wine shops at 5% it is reasonable to direct the AO to estimate the profit at 10% of purchases or stock put to sale during the year subject to the assessed income is not less than the returned income - The CIT (A)’s order is modified to this extent - partly in favour of assessee.
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