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2016 (6) TMI 1449 - AT - Income TaxEstimation of net profit of total purchases - rejection of books of accounts - AO. estimated net profit of 20% on stock put for sale as of the opinion that the assessee has not maintained proper books of accounts and vouchers in support of purchases and sales - A.O. further observed that the assessee has failed to maintain stock registers and books of accounts maintained by the assessee are not susceptible for verification, therefore rejected the books of accounts and estimated net profit of 20% - HELD THAT:- We are of the view that the net profit estimated by the A.O. by relying upon the decision of Hon’ble A.P. High Court (2011 (7) TMI 1274 - ANDHRA PRADESH HIGH COURT] which was rendered under different facts is quite high. On the other hand, the assessee relied upon the decision of coordinate bench and the coordinate bench under similar circumstances estimated the net profit of 5% on total purchases net of all deductions. No contrary decision is placed on record by the revenue to take any other view of the matter than the view so taken by the coordinate bench. Therefore, we direct the A.O. to estimate the net profit of 5% on total purchases net of all deductions. Ordered accordingly.
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