TMI Blog2019 (5) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... We remit this issue back to the AO to verify the interest income. If it is earned out of free deposits, the additional income may be sustained. Addition u/s 68 - petition for admission of the additional evidences - HELD THAT:- We admit the additional evidences (supra) submitted by the assessee, as the same are important evidences to decide the issue. Since the additional evidences submitted before the ITAT for the first time, the revenue authorities had no occasion to consider the same. Remit the issue back to the file of the AO with a direction to consider and verify the additional evidences submitted by the assessee and decide the issue in accordance with law after providing an opportunity of being heard to the assessee in the matter. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Commissioner of Income-tax (Appeals) is erroneous both on facts and in law. 2) The learned Commissioner of Income-tax (Appeals) erred in confirming the action of the Assessing Officer in rejecting the books of account. 3) The learned Commissioner of Income-tax (Appeals) erred in estimating the income at 5% without properly appreciating the facts stated before him. 4) The learned Commissioner of Income-tax (Appeals) erred in confirming the addition made of ₹ 55,516/- separately representing interest from bank deposits when the income is estimated. 5) The learned Commissioner of Income-tax (Appeals) erred in confirming the addition made of ₹ 31,09,500/- trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 grounds of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bution to meet the expenditure of license fee and bank guarantee fixed deposits which are required to be made to get the license. Thus an amount of ₹ 31,09, 500/- stands to be explained. During the course of hearing on 22.01.2016, the AR submitted that the initial investment in business was made from agriculture income of parents. However, no evidence was produced before the AO. 8.1 Further, the AO observed that during the course of hearing on 25.01,2016, the AR submitted that relatives of assessee, G. Ramreddy, G. Sanjeeva reddy, L.sudhakar reddy, L.Malla Reddy, L. Yadamma, G. Yadamma - all these persons have agriculture income and contributed to the business. Copies of Patta books in their names are furnished. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents are necessary evidences for deciding the matter, prayed to admit as additional evidence: S.No. Particulars Page Nos. at paper book 1 Confirmation letter along with returns of income, computation of total income and financial statements for the AY 2012-12 and AY 2011-12 22-32 2 Details of amounts received form close relatives 33 3 Confirmation letter dated 16/04/2016 of Smt. Gangidi Yadamma along with agreement of sale cum GP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the orders of revenue authorities. 11. Considered the rival submissions and perused the material on record. We noticed that assessee has not submitted any documentary evidence before lower authorities. Now for the first time filed additional evidence before us. Therefore, we admit the additional evidences (supra) submitted by the assessee, as the same are important evidences to decide the issue. Since the additional evidences submitted before the ITAT for the first time, the revenue authorities had no occasion to consider the same. Therefore, we remit the issue back to the file of the AO with a direction to consider and verify the additional evidences submitted by the assessee and decide the is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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