9911796707
TMI Blog2012 (5) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... atamaiah, Bairi Someshwar, Macha Srinivas Goud and N. Madhusudhan SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHVAN, JUDICIAL MEMBER Appellant by : 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. 148/Hyd/2012 in the case of Beeravelli Venkat Reddy. Brief facts of the case are that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the case decided by the Hon'ble ITAT in ITA No. 591/Hyd/2011, dt. 28/07/2011 in the case of M/s Kanakadurga Wines. 4. The learned CIT(A) erred in relying on the Hon'ble ITAT's order because the Hon'ble ITAT in the above case referred the order of the coordinate bench of the Tribunal in the case of Manjit Singh Bagga Vs. ITO in ITA No. 371 and Others dt. 30/09/2010. The case of Manjith Singh Bagga is a huge turnover case and with a view to rotate the business article ( i.e. alcoholic l iquor for human consumption) quickly and increase the turnover the margin is less whereas the assessee is a retail license holder in a small town in Nalgonda Distt. Hence, the case of Manjit Singh Bagga is not a comparable case to the assessee. 5. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 3. However, in these cases, there is no previous business done by the assessee to verify. The Assessing Officer has relied on the business practices in this trade where the sale price is much above that fixed by the Excise Dept. i.e. more than MRP. The media have reported numerous cases where liquor is sold above the MRP. 4. It is brought to the kind notice of the Hon'ble Tribunal that as per the latest ACB Investigation 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 Rs. 18,000 crores to the state exchequer but proportionate dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost of purchase to arrive at the understatement of sales of Rs. 93,65,993/- by the assessee. But the same time, the entire understatement of sales cannot be treated as undisclosed income of the assessee for the year under consideration. It is well settled law that the best guide for estimation of income after rejecting the books of accounts is either past history of the assessee or any other comparable cases. The learned counsel 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 reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
