Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 57 - AT - Income TaxRejection of books of accounts - Estimation of income on liquor sold - majority of the expenditure claimed under the heads freight and hamali, printing and stationery breakage etc. were not supported by proper vouchers - HELD THAT:- The coordinate benches of this Tribunal consistently taking a view that estimation of income at 3% of the cost of the goods sold is reasonable in this line of business. See SRI VENKATESWARA WINES VERSUS THE INCOME TAX OFFICER, WARD 10 (4) HYDERABAD. [2015 (11) TMI 1746 - ITAT HYDERABAD] Estimation of income on liquor sales at Bar & Restaurant, the AO estimated the same at 10%, which is reasonable and the same is hereby upheld, which is inline with the precedents. Estimation of on income on food items sold at Bar & Restaurant, AO estimated the same at 25%. The coordinate bench of this Tribunal in the case of M/s V.R. Bar restaurant [2015 (10) TMI 1485 - ITAT HYDERABAD], directed the AO to estimate the same at 10% as against 20% adopted by the AO. Therefore, following the said decision, we direct the AO to estimate the income on food items at 10%.
|