2015 (10) TMI 1485

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....32,000. There were survey proceedings in assessee's business premises on 08.02.2010 and in the course of survey, statement was recorded from one of the partners, who admitted net income at 5% on the sales and also amount of Rs. 24 lakhs to "settle" and "to purchase peace with the department". The A.O. after rejecting the books of accounts in the assessment estimated the sale of empty bottles at Rs. 50,000 as against Rs. 32,945 shown by the assessee in P& L account. On food sales of Rs. 1,96,400 AO estimated profit at 20% and an amount of Rs. 3,92,800 was considered as profit from the food business. Out of the stock put to sale in liquor business of Rs. 67,82,480, A.O. estimated the profit at 5%. Instead of considering the amount of Rs. ....

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....r in the case of Manjit Singh Bagga vs. ITO in ITA.No.371 and others dated 30.09.2010. Ld. Counsel further submitted that there is no need to reject the books of accounts and estimating the incomes. Since the order of Ld. CIT(A) is wrongly considered that the additions were agreed,as such Ld. Counsel submitted that issues can be decided on merits by the ITAT with reference to addition of amounts. Ld. Counsel relied on the following case law. (i) CIT vs. Shri Ramdas Motor Transport 238 ITR 177 SRMT case (ii) ACIT, Circle 7(1), Hyderabad vs. M/s. Surabhi Automobiles, Hyderabad Order dated 01.10.2014 in ITA.No.1006/Hyd/2013. (iii) CIT vs. S. Khaderkhan & Son 352 ITR 480 (SC) 4.1. The Ld. Counsel relying on the decision of Hon'ble Supre....

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....ar and Restaurant in Hyderabad, we are of the opinion that income can be estimated at 10% of the food sales. Accordingly, assessee has gets relief. A.O. is directed to adopt income of Rs. 1,96,400 as against Rs. 3,92,800 added by him in the order. 8. As to the addition of Rs. 24 lakhs as income offered from Bar and Restaurant by the assessee's partner, except the statement given by the partner during the course of survey, there is no other evidence establishing that assessee could earn that much income from the business. During the survey no incriminating material was found nor any excess stock was found. Even though books of accounts were rejected that does not mean the declaration given by the partner in the course of survey has any ....