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2017 (8) TMI 654 - AT - Income TaxEstimation of income - determination of N.P. - assessee is engaged in the business of (IMFL) liquor trade - Held that:- The very same issue of estimation of profit in the trade of IMFL was considered by the coordinate bench of the Tribunal in the case of Tangudu Jogisetty [2016 (7) TMI 379 - ITAT VISAKHAPATNAM] and held that estimation of 5% net profit on purchase is reasonable and directed the A.O. to estimate the net profit of 5% on total purchases net of all deductions Unexplained Loans and advances - Held that:- The reason of the assessee that the confirmations could not be obtained due to the circumstances beyond the control is not acceptable and appears to be after thought. The time limit for completion of the assessment was 2 years from the end of the relevant assessment year and the assessee must submit the evidences within the time limit to support the claim. In this case, both the A.O. and the CIT(A) have given sufficient opportunities but the assessee failed to furnish the confirmations before the A.O./CIT(A). Hence, we hold that there is no reasonable cause for non-submission of the confirmations before the A.O. and the CIT(A), accordingly, the petition for admission of additional evidence is rejected. The assessee has not even furnished the names and addresses of the persons from whom advances were taken at the time of assessment proceedings as well as the CIT(A) and failed to establish identity, creditworthiness and the genuineness of the creditors. Therefore, the CIT(A) has rightly confirmed the addition made by the A.O. and the same is upheld. Unexplained investment - Held that:- Though assessee claimed to have received the amounts from Shri Krishna Rao and Shri Krishna Murthy, the assessee has not even furnished the confirmation letters, addresses of the persons, PAN numbers and his creditworthiness of the creditors. Even at the time of appeal hearing, the assessee did not furnish any such details. Therefore, we do not find any infirmity in the order. The Ld. CIT(A) and the same is upheld.
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