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2019 (5) TMI 426

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..... 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. Thu .....

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..... 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/- treating the credits into the bank account as the income of the appellant. 6) Any other ground or grounds that may be urged at the time of hearing. 5. Ground Nos. 1 & 6 are general in nature. 6. As regards ground Nos 2 & 3 estim .....

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..... L 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 appeal No.2 & 3 are allowed." Therefore, we direct the AO to adopt 3% of the cost of goods of liquor sold as the income of the assessee. Accordingly, the grounds raised on this issue are allowed. 7. As regards ground No. 4 regarding addition of ₹ 55,516/- representing interest from bank depo .....

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..... dence 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. No other evidence indicating what is the income derived by them, what is their other means of livelihood, how the amounts have been contributed by them, what is the contribution of each person- these details were not furnished. The copies of the patta book were furnished, according to the AO, the same are mere copies of Patta books in the names of his relatives. Their compl .....

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..... le cum GPA, Pattadar passbooks 34-48 4 Confirmation letter dt. 16/03/2016 of Sri d. Madhusudhan Reddy 49 5 Confirmation letter dt. 16/04/2016 of Sri T. Ramesh Chary along with return of income for the AY 2013-14, computation of total income, Andhra Bank Passbook. 50-61 6 Confirmation letter dt. 16/04/2016 of Sri Gangidi Ram Reddy along with SBI Passbook and Pattadar Passbook 62-66 7 Confirmation letter dt. 16/04/2016 of Sri Lachagari Sudhar Reddy along with Andhra Bank Passbook and Pattadar Passbooks 67-75 8 Confirmation letter dt. 16/04/2016 of Sri Shankar Mudhavath along with IOB statement of account 76-84 9 Confirmation letter dt. 16/04/2016 of Sri Nirdhula Indra Reddy along with return of income for the AY 2013-14, computation of total .....

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