TMI Blog2012 (5) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant : Mr. B.V. Prasad Reddy ORDER PER ASHA VIJAYARAGHAVAN, J.M; These appeals by the Revenue are directed against the orders passed by the CIT(A) VI, Hyderabad for assessment years 2007-08 2008-09. Since identical issues are involved in these appeals, they are clubbed, heard and disposed off together for the sake of convenience. 2. Since facts involved in all these appeals are quite common and identical, for the sake of brevity, we deal with the facts as mentioned in ITA No.127/Hyd/2012 in the case of Ravindra Reddy Koppula. Brief facts of the case are that the assessee is carrying on the business of retail trade in liquor. The entire purchases of the assessee are from the Andhra Pradesh Beverages Corporation Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 30% over the cost of purchase to arrive at the understated sales, in principle. 4. The CIT(A) erred in relying on the decision of ITAT in the case of M/s Kanaka Durga Wines, Hyderagbad, in as much as in the case of M/s Kanaka Durga Wines, Hyderabad, the net prof it has been estimated @ 3% of the cost of liquor put to sale taking the previous history of profit where as the assessee has no past history and the liquor traders in Nalgonda District are sell ing the liquor as per PRP or even more than MRP. 5. The CIT(A) erred in relying upon the decision of ITAT, B-Bench, Hyderabad, in the case of M/s Kanaka Durga Wines, Hyderabad, in ITA No. 591/Hyd/2011, dt. 28/07/2011, since the volume of business, location of business and prof its i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the liquor trade, the sales are made much above MRP by forming cartels of liquor traders. 5. In the interest of social justice, it is imperative that appropriate taxes are collected from liquor trade. It is estimated that liquor trade contributes to ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel for the assessee clearly demonstrated before us that the assessee s net prof it in the past is between 0.12% to 0.28% of sales. The co-ordinate Bench of the Tribunal in the case of Manjit Singh Bagga Vs. ITO in ITA No.371 Others dated 30th September, 2010 held that the estimation of the net prof it at 3% is reasonable. In view of the matter, ends of justice would be met if we estimate the net prof it of the assessee at 3% of purchases or stock put for sale during the year under consideration as against the estimation of 5% made by the CIT(A) . 7. We find that the coordinate benches of this Tribunal have been consistently following the said decision of the Tribunal relied upon by the CIT(A), in their recent orders in similar kind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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