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2018 (10) TMI 1944 - AT - Income TaxEstimation of income - CIT (A) confirming the estimation of income from wine shop at 5% of stock put to sale as against 3% being approved by the Tribunal - HELD THAT:- We find that this issue is covered in favour of the assessee by various decisions of the Tribunal wherein we have upheld the estimation of income at 3% of the cost of goods put to sale. Addition u/s 68 - unexplained investment credit - Assessee was required to pay License fee and the assessee has paid the same but with no explanation to source - HELD THAT:- AO has verified the evidence filed by the assessee such as Bank statement of the partner, loan a/c, etc., and has accepted that the sources for ₹ 32,50,000 are explained. Even with regard to the balance of ₹ 2,16,000, the AO has held that considering the fact that the assessee is into business since long, the statement of the assessee alongwith the evidences may be accepted. We find that the CIT (A) has however, has not accepted on the ground that the assessee has not produced the evidence. Since admittedly the assessee is in this business for long and the AO has accepted the assessee’s contention of the availability of funds of ₹ 2,16,000 from the earlier years after verification, we are of the opinion that the CIT (A) ought to have deleted even the addition of ₹ 2,16,000. Therefore, grounds 3 & 4 are allowed.
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