TMI Blog2017 (8) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... antiate the claim - Held that:- Assessee filed an additional evidence on 15/02/2017 and submitted that he is in the process of collecting the evidence and ultimately he succeeded in collecting the evidence and therefore, same may be considered and admitted and remitted matter back to the Assessing Officer for fresh consideration. As find that all the confirmation letters filed by the assessee were obtained from the creditors, who belongs to the assessee’s village and the amount is below ₹ 20,000/-. When the assessee has borrowed funds from friends and relatives, who are belonging to the same village, as to why he has taken near about five years to collect the confirmation letters. The assessee has not given any explanation for that. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the issue involved in this appeal is squarely covered by the decision of the coordinate bench of this Tribunal where the Tribunal has scaled down the estimation of profit from 10% to 5% in the case of Tangudu Jogisetty in ITA No.96/Vizag/2016 by order dated 2.6.2016. 5. On the other hand, the Ld. D.R. strongly supported the orders passed by the authorities below. 6. I have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The issue involved in this appeal is with regard to estimation of profit in respect of IMFL business carried by the assessee. In this respect, the coordinate bench of the Tribunal in the case of Tangudu Jogisetty (supra) has considered the prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State Government. The assessee being a license holder of State Government cannot sell the products over and above the MRP fixed by the State Government. We find force in the arguments of the assessee for the reason that the A.O. has estimated the net profit by relying upon the decision of A.P. High Court in the case of CIT Vs. R. Narayana Rao in ITA No.3 of 2003 which is rendered under 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng officer should also bear in mind that in no case the income determined should be below the income returned. 9. Considering the facts and circumstances of this case and also respectfully following the ratios of coordinate bench, we are of the view that the net profit estimated by the A.O. by relying upon the decision of Hon ble A.P. High Court (supra), which was rendered under different 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 coor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence was filed. Therefore, ld.CIT(A) has confirmed the order of Assessing Officer. 10. Aggrieved, assessee carried the matter in appeal before the Tribunal. 11. Learned Authorized Representative for the assessee submitted that assessee has borrowed an amount of ₹ 6,92,234/- from his friends and relatives and to substantiate the above transaction, he filed confirmations in the form of paper book and also filed a petition under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 and submitted that the same may be admitted and the issue may be remitted back to the file of the Assessing Officer for fresh consideration. 12. On the other hand, Learned Departmental Representative seriously objected that at this stage, no addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
