9911796707
TMI Blog2017 (6) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... hat delay may be condoned. I have gone through the affidavit filed by the assessee and find that there is a reasonable cause in non-filing of the appeal in time. Therefore, it is a fit case for condoning the delay, accordingly, delay is condoned. 3. The first ground of appeal relating to estimation of income. Assessee is an individual carrying on business of purchase and sale of IMFL, filed his return of income by declaring total income of Rs. 3,73,820/-. 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 the due procedure, assessment was completed u/s 143(3) of the Act by estimating profit at 20% of stock put to sale. 4. On appeal, the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sale. The A.O. was of the opinion that the assessee has not maintained proper books of accounts and vouchers in support of purchases and sales. The A.O. further observed that the assessee has failed to maintain stock registers and books of accounts maintained by the assessee are not susceptible for verification, therefore rejected the books of accounts and estimated net profit of 20% by relying upon the decision of Hon'ble A.P. High Court. 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 H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r: "3. We have heard the parties, perused the orders of the revenue authorities as well as other materials on record. It is the contention of the Ld. A.R. that the estimation of profit at 16% is high and excessive considering the normal rate of profit in this line of business. Whereas, the Ld. D.R. supported the order of the CIT(A). Having considered the submissions of the assessee, we are of the view that the issue is no more res integra 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 purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of assessment proceedings, the Assessing Officer has observed that assessee had claimed unsecured loans of Rs. 12,69,400/-. The Assessing Officer called upon the assessee to file confirmations from unsecured loan creditors and prove the credits. As the assessee was unable to substantiate the above unsecured loans, the Assessing Officer treated the impugned amount of Rs. 12,69,400/- as 'income from other sources'. 10. The assessee carried the matter in appeal before the ld. CIT(A) and no evidence was filed to substantiate the claim of the assessee. Even before the Tribunal also, the assessee is not able to file any evidence in respect of the above unsecured the loans. Thus, this ground of appeal raised by the assessee is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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