TMI Blog2016 (7) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... . - I.T.A. No. 365/Vizag/2015 - - - Dated:- 22-7-2016 - V. Durga Rao (Judicial Member) And G. Manjunatha (Accountant Member) For the Appellant : G.V.N. Hari, AR For the Respondent : S. Ravi Sankar Narayan, DR ORDER V. Durga Rao (Judicial Member) This appeal filed by the assessee is directed against the order of CIT(A)-2, Visakhapatnam dated 4.8.2015 for the assessment year 2011-12. 2. Facts are in brief that the assessee is in the business of IMFL and filed a return of income declaring total income of ₹ 7,94,000/-. The case was selected for scrutiny and assessment was completed by determining total income of ₹ 43,73,007/- by estimating the income at 20% of the stock put to sale after deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the order passed by the authorities below. 7. We have heard both the parties, perused the materials available n record and gone through the orders of the authorities below. 8. The very same issue of estimation of profit in the trade of IMFL was considered by the coordinate bench of the Tribunal in the case of Tangudu Jogisetty in ITA No.96/Vizag/2016 by order dated 2.6.2016 and held that estimation of 5% net profit on purchase is reasonable and directed the A.O. to estimate the net profit of 5% on total purchases net of all deductions. The relevant portion of the order is extracted as under: 8. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different facts. The A.P. High Court has considered the case of an arrack dealer, whereas, the assessee is into the business of dealing in IMFL. Therefore, we are of the view that the A.O. was not justified in relying upon the judgement, which was rendered under different facts to estimate the net profit. On the other hand, the Ld. A.R. for the assessee, relied upon the decision of ITAT, Visakhapatnam bench in the case of T. Appalaswamy Vs. ACIT in ITA No.65 66/Vizag/2012. We have gone through the case laws relied upon by the assessee in the light of the facts of the present case and finds that the coordinate bench of this Tribunal, under similar circumstances held that estimation of 5% net profit on purchases is reasonable. The relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts is quite high. On the other hand, the assessee relied upon the decision of coordinate bench and the coordinate bench under similar circumstances estimated the net profit of 5% on total purchases net of all deductions. No contrary decision is placed on record by the revenue to take any other view of the matter than the view so taken by the coordinate bench. Therefore, we direct the A.O. to estimate the net profit of 5% on total purchases net of all deductions. Ordered accordingly. 9. We respectfully following the above order of the coordinate bench of the Tribunal, we set aside the order passed by the Ld. CIT(A) and direct to remit matter back to the A.O. to estimate the profit from the business of the assessee by applying the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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