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2016 (4) TMI 906 - AT - Income TaxDisallowance on account of net profit - Held that:- AO has not given any justification for applying 12% net profit on the estimated sale in the hands of licensee. In case of AOP, the case has been scrutinized U/s 143(3) of the Act where income disclosed by the AOP has been accepted by the Assessing Officer. The income result has been accepted by the Assessing Officer. Copy of scrutiny assessment has been placed in the paper book. The findings given by the ld CIT(A) are also not on merit in estimating the income @ 2% as in the hands of AOP, same income has been taxed by holding that Assessing Officer of the AOP namely Royal Wines has not considered the issue of license issued displayed at the shop and TCS made by the excise department. When the Assessing Officer in scrutiny has accepted the assessee’s income as such and no disallowance on account of net profit has been made wherein net profit has been accepted by the Assessing Officer @ 12%. - Decided in favour of assessee. Addition on account of unexplained investment - Held that:- The ld CIT(A) has examined this issue thoroughly, which has not been controverted by the ld DR, thus the Assessing Officer have doubted the cash payment made to the sellers of the house property, which is not prohibited under the IT laws. The source in the hands of AOP had been explained by the assessee, therefore, we uphold the order of the ld CIT(A). - Decided in favour of assessee.
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