9911796707
TMI Blog2018 (6) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... from retain trading in IMFL under the trade name of M/s. Sri Durga Wines. Assessee's books of account were rejected and income was estimated at 5% on the liquor put to sale. 3. Ld.CIT(A) after considering the submissions of assessee and various case law relied upon, considered the location of the business and determined the net profit at 4.5% of cost of goods sold as reasonable profit. 4. It was the submission that ITAT is confirming the estimation of income at 3% and requested for estimation of income at 3% and relied on the case of Shri Sridhar Ramagiri Vs. ITO in ITA No. 1924/Hyd/2017, dt. 23-05-2018. 5. After considering the rival contentions, we are of the opinion that income can be estimated at 3% on cost of goods sold on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held by the Hon'ble High Court of AP. The A.O. however, observed that the Hon'ble AP. High Court in the case of CIT vs. Kamlekar Shankar Lal in ITTA No. 21 of 2013 dated 23.07.2013 has estimated the net profit at 5% of the purchase or stock put to sale. He therefore, estimated the income at 5% of the goods put to sale and brought it to tax. Similarly, he also made an addition of miscellaneous receipts of Rs. 3,39,064. Aggrieved, assessee preferred an appeal before the CIT(A) who confirmed the order of the A.O. and the assessee is in second appeal before us. 3. At the time of hearing, Ld. Counsel for the assessee submitted that this issue is covered in favour of the assessee by the decision of 'A' Bench of this Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account also pertains to business. 6.1. After considering the rival contentions, we are of the opinion that the confirmation by the CIT(A) is not proper whether the account is used for business purposes or not. The deposits in the bank account pertain to assessee. Assessee had substantial income during the year and that too he is doing retain business in IMFL. There is no allegation that these amounts also pertain to the business by the AO. Since the deposits are through-out the year in small amounts and since the corresponding credits in the books of account are not verified by the AO and the books of account having been rejected, we are of the opinion that the deposits can be telescoped to the income estimated on the business. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
