TaxTMI 
TaxTMI 
TaxTMI 
2012 (5) TMI 53
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....s of retail trade in liquor. The entire purchases of the assessee are from the Andhra Pradesh Beverages Corporation Ltd. The AO observed that as per the GOMS No. 184 dated 7.2.2005 of the Govt., of AP the retailers' margin was fixed at 27% for ordinary liquor items, 20% for medium and premium items and 25% for beer. Since the assessee was unable to produce the evidence for its turnover in the form of sale bills, the AO computed the turnover by adopting the profit margin as 27% and added the difference to the income of the assessee as suppressed turnover. The assessee has agitated against this estimation of suppressed sales and its assessment as the assessee's income. 3. On further appeal before the CIT(A), the CIT(A) followed the decision ....
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....s on the facts and in the circumstances of the case. 2. The learned CIT(A) ought to have upheld the estimation of sales @27% of the cost of liquor put to sale as per Govt, of AP Prohibition & Excise GOMS 184 dated 7.2.2005 and assessment of understatement of sales. 3. The learned CIT(A) ought to have appreciated that the Tribunal in it's order in the case of M/s Kanaka Durga Wines, Hyderabad in ITA No.591/Hyd/2011 dated 28.7.2011 upheld the action of the AO rejecting the books of accounts u/s 145 and adopting 30% over the cost of purchase to arrive at the understated sales, in principle. 4. The learned CIT(A) erred in relying on the decision of Tribunal in the case of M/s Kanaka Durga Wines, Hyderabad,....
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....ed by the Cross Objector before her and gave a direction for giving credit for the TCS instead of directing the Assessing Officer to delete the entire interest levied u/s 234B of the Act in view of provisions of section 208 and 209 of IT Act. 3. Any other ground that may be urged at the time of hearing. 9. We find that the issue in the Departmental appeal regarding intimation of profits is squarely covered by the decision of the Tribunal in ITA No.591/Hyd/2011 dated 28.7.2011 in the case of M/s Kanaka Durga Wines on identical facts. In that case the Co-ordinate Bench has directed as under: "We find that the AO has rightly adopted the sale pri8ce at 30% over the cost of purchase to arrive at the understatement of sales of Rs. ....
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.... of Director of Income Tax (International Taxation) v. Maersk Co. Ltd. As Agent of Henning Skov (HC Uttarkand) 54 DTR 41 and submitted that the assessee is not liable to pay interest u/s 234B. 12. The issue in the cross objection is whether the interest under Section 234B could be levied for non payment of advance tax inasmuch as the entire purchase was subject to tax collection at source under Section 206C. It is not in dispute that when the assessee purchased Alcoholic liquor for human consumption, the seller is obliged to collect tax at source under Section 206C of the IT Act, falling within Chapter - XVII. The purpose of Section 206C is that the seller will collect tax from the purchaser in respect of sale of Alcoholic liquor, forest t....
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....duced from the tax computed on the estimated income for the purpose of determining the advance tax payable. Thus the CIT(A) has rightly held in computing the advance tax payable, tax collectible u/s.206C should be reduced by observing as under:- "There is no doubt that the assessee engaged, as it is, wholly in the business of liquor trade is subject to collection of tax at source. The AO is, therefore, directed to give credit for such tax collected at source, on the basis of Form No.27D, before computing the interest leviable u/s 234B." 15. The assessee relied on the decision of DIT v. Maresk Co Ltd. reported in 54 DTR 1 (Uttarkhand). But it is distinguishable as it is a case of an employee. In the case of an employee, the employer is req....