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TMI Blog2017 (4) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... l income of Rs. 2,76,836/-. The return filed by the assessee was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act'). Later, after following due procedure, assessment was completed u/s 143(3) of the Act by estimating net profit @ 20% of the stock put to sale. 3. On appeal, the Ld. CIT(A) granted a partial relief to the assessee by scaling down the percentage from 20% to 10% and directed the A.O. to estimate the income @ 10% of purchase price. 4. On being aggrieved, assessee carried matter in appeal before the Tribunal. At the time of hearing, the Ld. Counsel for the assessee has submitted that the issue involved in this appeal is squarely covered by the decision of the coordinate bench of this Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It is the contention of the assessee that the net profit estimated by the A.O. is quite high when compared to the nature of business carried on by the assessee. It is further submitted that the case law relied upon by the assessee is not applicable to the facts of the present case. The case before the Hon'ble A.P. High Court was that the assessee is into the business of trading in arrack, whereas it is in the business of dealing in IMFL. The assessee further contended that IMFL trade was controlled by the State Government through A.P. State Beverages Corporation Ltd. and the prices of the products are fixed by the State Government. The assessee being a license holder of State Government cannot sell the products over and above the MRP fix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a in view of a series of decisions of the ITAT Hyderabad bench in similar cases. The coordinate bench in case of ITA No.127/Hyd/12 and others dated 18.05.2012 as well as a number of other cases have held that profit in case of business in Indian made foreign liquor has to be estimated at 5% of the purchases made by the assessee. Therefore, following the decision of the ITAT Hyderabad bench, we set aside the order of the CIT(A) and direct the assessing officer to estimate the profit from the wine business of the assessee by applying the rate of 5% of the purchases made net of all other deductions. The assessing officer should also bear in mind that in no case the income determined should be below the income returned." 9. Considering the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer on the ground that the assessee is not able to substantiate his case from where he obtained loan. 10. Learned counsel for the assessee submitted that the Assessing Officer has already added an amount of Rs. 11,53,178/- as unexplained source and again making addition separately on account of unproved loan of Rs. 1,22,000/- is not justified. 11. On the other hand, Ld. D.R. supported the orders passed by the authorities below. 12. I have considered the order of the Assessing Officer as well as CIT(A) and also arguments of the learned counsel for the assessee. I find that in the assessment order, the Assessing Officer already made an addition of Rs. 11,53,178/- as assessee's investment made out of unexplained source and the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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