9911796707
TMI Blog2012 (7) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... on of profits from sale of country liquor in the absence of any sale bills for the financial year in question as admitted by the assessee. At the assessment stage, the assessee was required to explain why the case be not decided on the basis of comparable cases in order to compute the higher business income of the assessee. The AO after elaborate discussion and considering various case laws computed the business income of the assessee. Accordingly, the license fee in assessee's case being Rs.3,31,08,407/-, 2.5 times of this comes to Rs.8,27,71,018/- and net profit @ 8% was applied and profit was estimated at Rs.66,21,681/- and whatever amount was declared in the profit and loss account at Rs.1,88,251/- was reduced and income was estimated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income and ultimately income is estimated by the authorities below, which fact is also confirmed by the Tribunal while dismissing both the cross appeals of the assessee and the Revenue vide order dated 24.08.2005, copy of which is placed on record. He has submitted that on estimate of income, penalty is not leviable. He has relied upon the decision of Hon'ble Allahabad High court in the case of CIT vs. Arjun Prasad Ajeet Kumar, 214 CTR 355, in which it was held that "the order of CIT(A) deleting penalty under section 271(1)(c) on the ground that there being nothing on record that assessee's explanation lacked bona fides, penalty under section 271(1)(c) could not imposed on the basis of estimating sales and making addition by applying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he trading account are paid to Excise Department and are verifiable and stock register and sale price are checked by the Excise Authorities. The assessee maintained the quantitative tally, as contained in the audit report. The AO rejected the book results because the sale bills are not available and it is not open to verification. It is generally seen that the sale of liquor is made in cash and even if cash memo is prepared by the assessee, again the sale is not verifiable. Thus, in the case of liquor sale, the sales to the petty customers are never subjected to verification. The purchases are always made from the Government Department and subject to the control by the Excise Authorities. Therefore, the assessee produced details of purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
