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2018 (1) TMI 181 - AT - Income TaxEstimation of profit on purchase price - 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 cash credits - Held that:- It is only submitted before the ld. CIT(A) that an amount of ₹ 27,60,000/- was already offered to tax and adjusted against net loss in the capital account. Even before us, the assessee has not filed any details. The argument advanced before the ld. CIT(A) that the amount of ₹ 27,60,000/- was already offered for taxation has been considered by the ld. CIT(A) and he has observed that the impugned credits as unsecured loans, offered to tax has no nexus to the income from liquor business, and therefore the impugned credits offered to tax is part of income, estimated without merits. Ld. CIT(A) rejected the arguments raised by the assessee and confirmed the addition. We find that even before us the assessee is not able to establish that the nexus between unsecured loans and the liquor business and therefore, we are of the opinion that the ld. CIT(A) has rightly confirmed the order passed by the Assessing Officer. Accordingly, this ground of appeal raised by the assessee is dismissed.
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