9911796707
TMI Blog2012 (8) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... poration Ltd. The AO observed that as per the GOMS No.184 dated 7.2.2005 of the Govt., of AP the retailers' margin was fixed at 27% for ordinary liquor items, 20% for medium and premium items and 25% for beer. The assessee had furnished the details product-wise and brand-wise, as required by the APBCL: Brand Cost of purchase Value of closing stock Net purchase value 27% purchases 48,84,033/- 4,61,666/- 44,22,367/- 20% Purchases 1,05,74,484/- 10,29,276/- 95,45,208/- 25% purchase 50,87,085/- 7,92,285/- 42,94,800/- Total 2,05,45,602/- 22,83,227/- 1,82,62,375/- 3. In view of the above bifurcation furnished by the assessee, the Assessing Officer reworked out the sale of all liquor products as under:- i) the value of sales e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of income which is done in similar cases. 3. The learned CIT(A) should have appreciated the fact that total income was determined in accordance with notif ication issued by the excise department of Govt. of AP to all the l iquor dealers and it does not matter whether this notif ication appear in Newspapers. 4. The learned CIT(A) failed to appreciate the fact that the assessee f irm could not produce any cogent evidence to prove that the prof it earned by it is only the prof it admitted by it. In other words there is no supporting evidence for the expenditure claimed by the assessee to arrive at the net profit. 5. The CIT(A) failed to appreciate the facts that books of account were rejected and gross sales was determined as per margin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppropriate taxes are collected from liquor trade. It is estimated that liquor trade contributes to Rs. 18,000 crores to the state exchequer but proportionate direct taxes are not realized by the income tax department. 6. It is also submitted that TDS and TCS rates have been prescribed by the CBDT after evaluating the profit margin in each trade. For the liquor trade, a rate of 1% TCS (and increased by surcharge and education cess) has been prescribed. If this rate is adopted, the net profit margin in the liquor trade exceeds 5%. 7. A provision for refund is provided to the assessee under unforeseen conditions where the assessee incurs losses or lesser profits. But after a perusal of the facts of these cases, there does not seem to be a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
