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2014 (2) TMI 947 - AT - Income TaxEstimation of income in liquor business – Estimation of income on cost of goods sold @5% - Held that:- The assessee had already admitted sales and treated the balance sum as undisclosed sales and after reducing the unaccounted investment from it, brought to tax the difference - The decision in Income tax Officer-Ward-2, Hyderabad Versus Amaravathi Wine Shop, Hyderabad [2012 (8) TMI 706 - ITAT, HYDERABAD] followed - CIT(A) directed AO to estimate net profit at 5% of the purchases or stock put to sale during the year, subject to net profit being not less than returned profit - there is no reason to interfere in the findings of CIT(A) as he followed Coordinate Bench decision – Decided against Revenue. Additions made on rejecting books of account - Taxability u/s 69 and 69C of the Act – Examination of payments on behalf of license fee – Held that:- The issue of payment of license fee and sources require fresh examination by A.O -assessee is in the same business of running wine shop - the statements did not indicate the business from 1.4.2008 to June, 2008 - The opening stock as on 31.03.2008 was shown as NIL - the purchases from 1.4.2008 to 30.04.2008 and corresponding sales are required to be examined on the basis of books/bank statements – also, outstanding license fee (rather prepaid fee) of earlier year, if assessee was in business as contended, reconciliation with payments this year and claims in next year also require verification – thus, the matter remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee.
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