TMI Blog2019 (3) TMI 1814X X X X Extracts X X X X X X X X Extracts X X X X ..... dvocate Revenue by: Shri K.R. Narayana, JCIT (DR) ORDER Shri A.K. Garodia, This appeal is filed by the assessee and the same is directed against the order of ld. CIT(A), Davangere dated 22.02.2017 for Assessment Year 2009-10. 2. The grounds raised by the assessee are as under. 1. The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in directing the learned A.O to estimate the gross profit at 14.09% as against 20% adopted by the learned A.O under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] ought to have a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. DR of revenue supported the order of CIT(A). 4. We have considered the rival submissions. We find that in the present case, the AO has estimated the income of the assessee by applying GP @ 20% on the basis of reply received from KSBCL authorities in which it is stated that the assessee is getting 20% profit on sale of liquor. The AO in Para 2 of the assessment order has noted that this was submitted by assessee before him that the assessee cannot sell the liquor with higher profit because of tough competition which forces the assessee to sell at low rate. From the assessment order, it is seen that there is no mention about rejection of books of accounts maintained by the assessee. Now in the light of these facts, we examine the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to make an assessment u/s.144 of the Act. In the present case, the AO estimated the income based on the information obtained from KSBCL authorities disclosing the percentage of profit on sale fixed by the Karnataka government. It is not the case of the AO that the books were not properly maintained. Not even a word has been whispered by the AO that the books were not in accordance with the method of accounting, or were incorrect / incomplete. In our view, the laws commands us to set aside the assessment made on the basis of estimation, if the AO made the estimation without rejecting the books of account. In the matter of Anil Kumar (supra), the Hon ble jurisdictional High Court has held as under : 11. In so far as the estimation of gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion made by the Assessing Officer was liable to be deleted. The said finding is based on sound appreciation of facts and it does not give rise for framing substantial question of law. In view of the above, we do not find that the order passed by the CIT (A) is in accordance with law. Therefore we hold that the assessee is entitled to the relief claimed. 5. The ld. DR of revenue could not point out any difference in facts in the present case as compared with facts of this case and hence, respectfully following this Tribunal order and in turn following the judgment of Hon'ble Karnataka High Court rendered in the case of CIT Vs. Anil Kumar Co. (supra), we hold that the addition made by the AO by estimating the GP without rejectin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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