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2017 (8) TMI 606 - ITAT VISAKHAPATNAMEstimation of income - 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 investment - Held that:- As the assessee did not place any evidence to establish the source of unexplained investment therefore, we do not find any infirmity in the order of the CIT(A) and the same is upheld. The assessee’s ground of appeal on the issue is dismissed. Addition towards other income - Held that:- We agree with the assessee that since the income is estimated by rejecting the books of accounts, no separate addition required to be made on account of further expenditure/income. The assessee stated that the income was earned on the deposits made as guarantee deposit. The deposit made for securing the guarantee in connection with the setting up of business required to be considered while estimating the business income and the same cannot be taken as separate source. Therefore, once the business income is estimated, no separate addition required to be made towards the interest. Hence, we set aside the order of lower authorities and allow the appeal of the assessee.
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