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2018 (12) TMI 38 - AT - Income TaxRejection of books of account - estimating the income at 3% - unexplained investment - Held that:- Income from the sale of liquor has been estimated at 3% of the cost of the goods put to sale and therefore, assessee has no grievance against the assessment order to this extent is confirmed For unexplained investment his is the first year of operation of the assessee and the assessee could start the business only after obtaining license from the Govt. and by making payment of the license fee. The assessee has made the payment of ₹ 18.00 lakhs towards the first instalment of the license fee and therefore, such an amount cannot be treated as unexplained income from the business of the assessee. This is the capital introduced by him and if at all, it can only be the income from the earlier years and not from the relevant previous year. Therefore, respectfully following the judgment of the Hon'ble Supreme Court in BHARAT ENGINEERING AND CONSTRUCTION CO. [1971 (9) TMI 14 - SUPREME COURT], we delete the addition of ₹ 18.00 lakhs. - Decided partly in favour of assessee.
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