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TMI Blog2017 (6) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs. 2,20,210/-. 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 income at 20% of 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 re-compute the income at 8% of purchase price. 4. On being aggrieved, assessee carried matter in appeal before the Tribunal. At the time of hearing, the Authorized Representative of the assessee has submitted that the issue involved in this appeal is squarely covered by the decision of the coordinate bench of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 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 M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. Considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction during the course of remand proceedings on the ground that DDs are purchased by some other parties and not by the alleged creditors. 9. On appeal before the CIT(A), the assessee has not given proper explanation in respect of purchase of DDs by third parties. Therefore, ld. CIT(A) was of the opinion that the assessee failed to prove the source of investment to the tune of Rs. 7,99,000/-. 10. On appeal before this Tribunal, Authorized Representative of the assessee submitted that once, assessee filed confirmation letters regarding DDs were taken from Andhra Bank, Ranasthalam Branch, it is immaterial that those DDs were taken by the assessee or the third parties and submitted that the addition made by the Assessing Officer and co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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