TMI Blog2017 (8) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has not filed any details with regard to creditworthiness of the parties. Even before the tribunal, the assessee is not filed any details in respect of creditworthiness of the creditors. Therefore, find no reason to interfere with the order of the ld.CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. - Decided against assessee. - ITA No. 102/VIZ/2015 - - - Dated:- 23-6-2017 - SHRI V. DURGA RAO, HON'BLE JUDICIAL MEMBER For The Assessee : Shri C. Subrahmanyam FCA For The Department : Shri S.R.S. Narayan Sr. DR ORDER This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Appeals)-2, Visakhapatnam, dated 29/01/2015 for the Assessment Year 2011-12. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. In this respect, the coordinate bench of the Tribunal in the case of Tangudu Jogisetty (supra) has considered the profit level in the line of business and decided that 5% of purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to re-compute the profit of the assessee. 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. estimated net profit of 20% on stock put for 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, 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 portion of the order is reproduced hereunder: 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 profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrary 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. 7 . In view of the above decision of the coordinate bench of the Tribunal, I direct the A.O. to re-compute the income of the assessee at 5% of purchase price. Accordingly, this ground of appeal raised by the assessee is allowed. 8 . So far as unexplained cash credit is concerned, in the assessment order the Assessing Officer has noted that the assessee has taken unsecured loans to the tune of ₹ 8 lakhs from Smt.Sujatha (₹01 lakh), Smt. Pydi Sarojamma (₹4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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