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2016 (12) TMI 1417 - AT - Income TaxN.P. estimation - Held that:- Estimation of net profit of 5% on total stock put to sale net of all deductions is reasonable. Addition towards unproved, unsecured loans u/s 68 - Held that:- In this case, the assessee has filed confirmation letters and also filed bank account copy of the creditors along with their income tax return. The creditors have enough source of income to explain the loans given to the assessee. Therefore, we are of the view that A.O. was incorrect in making additions u/s 68 of the Act. The CIT(A) without appreciating the facts simply confirmed additions made by the A.O. Hence, we direct the A.O. to delete additions made towards unsecured loans received from G. Narayana Swamy and K. Rama Rao. In so far as unsecured loans received from G. Veera Swamy, the assessee failed to prove the credit by filing necessary identity, creditworthiness and genuineness of the transactions. Even before us, the assessee failed to file any details with regard to the unsecured loans accepted from G. Veera Swamy. Therefore, we are of the view that the A.O. has rightly made additions towards unsecured loans received from G. Veera Swamy, accordingly, additions made by the A.O. are upheld.
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