TMI Blog2019 (3) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... nable and the same is hereby upheld, which is inline with the precedents. Estimation of on income on food items sold at Bar & Restaurant, AO estimated the same at 25%. The coordinate bench of this Tribunal in the case of M/s V.R. Bar restaurant [2015 (10) TMI 1485 - ITAT HYDERABAD], directed the AO to estimate the same at 10% as against 20% adopted by the AO. Therefore, following the said decision, we direct the AO to estimate the income on food items at 10%. - ITA No. 92/Hyd/2018 - - - Dated:- 15-11-2018 - Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member For the Assessee : Shri M. Chandramouleswara Rao For the Revenue : Shri Sunku Srinivasu ORDER PER S. RIFAUR RAHMAN, A.M.: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . When the assessee preferred an appeal before the CIT(A) against the order of AO, the CIT(A) confirmed the order of AO. 4. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising the following grounds of appeal: 1. The Appellate order of the td. commissioner of Income Tax (Appeals) is erroneous and bad both on facts and in law. 2. On the facts and in the circumstances of the case, the ld. Commissioner of Income Tax (appeals) has erred in sustaining the Assessment order rejecting Books of Accounts maintained by the appellant and estimation of income. 3. On the facts in the circumstances of the case, the ld. Commissioner of Income Tax (appeals) has erred in sustaining the estimating income from liquor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 45,971/- Total ₹ 2,64,085 Further, ld. AR submitted that the gross income shown by the assessee at ₹ 90,13,643/- and gross sales at ₹ 5.08 crores. The above expenditure incurred was ₹ 2,64,085/- which comes to 0.5% of the gross income. Therefore, the AO should not have rejected the books of account and estimated the net profit of the assessee, instead, he could have accepted the books of account of the assessee. 6.1 However, ld. AR submitted that with regard to estimation of income of liquor business and estimation of income on food items sold at Bar Restaurant, relied on the following cases of ITAT, Hyderabad: 1. ITA No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of the assessee but the assessee had failed to produce the same. Therefore, AO had estimated the income of the' assessee at 2.5% of the turnover. The CIT wants the same to be estimated at 5% of the total turnover because the Tribunal in the case of an assessee carrying on the same business of sale of IMFL has estimated the income at 5% of the turnover. This, in our view, is not justified as held by the Coordinate Bench of this Tribunal. The uniform net profit cannot be adopted in each and every case of similar business. Estimation of net profit must be on the basis of facts involved in each and every case. Therefore, in our view, there is no error committed by the AU in estimating the profit at 2.5% of the total turnover. Thus gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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