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2017 (9) TMI 818 - AT - Income TaxEstimation of income from IMFL business - 10% OR 5% - Held that:- The coordinate bench of the Tribunal in the case of Tangudu Jogisetty (2016 (7) TMI 379 - ITAT VISAKHAPATNAM) has considered the profit level in the line of business and decided that 5% of purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to re-compute the profit of the assessee. Thus we direct the A.O. to re-compute the income of the assessee at 5% of purchase price. Accordingly, this ground of appeal raised by the assessee is allowed. Unexplained investment - advances received - Held that:- It is difficult to accept the explanation given by the assessee that he has received an advance from prospective buyers i.e. who are going to purchase the liquor. So far as admission of additional evidence is concerned, the A.O. passed the assessment on 27.1.2014. The Ld. CIT(A) passed an order on 13.11.2014 and near about 10 months time is available to the assessee to file details before the Ld. CIT(A). Not only that, from the paper book filed by the assessee, it is very clear that all the prospective buyers who advanced the loans to the assessee are from same village of the assessee. When I specifically pointed out the A.R. of the assessee that why you are not able to file confirmation letters from the loan creditors who are belonging to your native village, he has not given any explanation. Under these above facts and circumstances of the case, we are of the opinion that this is not a fit case to admit the additional evidence at this juncture, therefore, additional evidence filed by the assessee is rejected and the order passed by the Ld. CIT(A) is confirmed. Accordingly, this ground of appeal raised by the assessee is dismissed. Unsecured loans - ingenuity of receipt - Held that:- In the case of Shri N. Neelakanteswara Rao from whom the assessee has received ₹ 2 lakhs has not filed return of income for assessment year 2011-12. The assessee has not filed bank account of Shri N.Neelakanteswara Rao to prove that the transaction has been taken place through bank. Similarly, in case of B. Bala Murali Krishna also the assessee has not filed the return of income for the A.Y. 2011-12 and bank account of B. Bala Murali Krishna has not been submitted. The assessee claims to have received an amount of ₹ 1 lakh from Smt. Usha Kumari but no details are filed. Therefore, the entire ₹ 5 lakhs treated by A.O. is unexplained and brought to tax under the head “income from other sources”. On appeal, CIT(A) confirmed the order of the A.O. Even before us assessee has not filed any details and no confirmation letters. Thus, find no infirmity in the order passed by the Ld. CIT(A). This ground of appeal raised by the assessee is dismissed.
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