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2017 (12) TMI 612 - AT - Income TaxEstimation of income on sale of IMFL - profit estimation - Held that:- In IMFL business, few newspapers have no doubt mentioned about considered sale of liquor at a higher price i.e. at a price higher than the rate fixed by the Government, but the fact remains that in the assessee’s case, there is nothing on record to suggest that he has flouted the norms and sold liquor at a higher price. The Government of Andhra Pradesh through AP Beverages Corporation Ltd. is the only agency authorised to sell IMFL. Sale rate is fixed by A.P. Beverages Corporation. However, having regard to the huge licence fee payable and other incidental expenditure, the ITAT, Visakhapatnam Bench in the case of Meka Ramamurthy [2017 (12) TMI 589 - ITAT VISAKHAPATNAM] consistently held that profit rate at 5% of purchase price, clear of all deductions is reasonable. Consistent with the view taken therein, estimate of profit at 5% of purchase price is reasonable and directed Assessing Officer, accordingly. Addition towards unexplained investment - Held that:- Neither before the Assessing Officer nor before the ld.CIT(A), the assessee could prove the source of investment, in fact, no explanation was offered. Thus, additional evidence filed for the first time, cannot be entertained, more particularly on the ground that even the confirmation letters are not sufficient to prove the investment. It is the duty of the assessee to prove the creditworthiness of the parties also, which is absent in the instant case. Having regard to these circumstances, the addition made by the Assessing Officer and confirmed by the ld. CIT(A) under section 69 of the Act is upheld.
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