2012 (5) TMI 699

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....e clubbed, heard and disposed off together for the sake of convenience. 2. Since facts involved in all these appeals are quite common and identical, for the sake of brevity, we deal with the facts as mentioned in ITA No.127/Hyd/2012 in the case of Ravindra Reddy Koppula. Brief facts of the case are that the assessee is carrying on the business 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 ....

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....he net prof it has been estimated @ 3% of the cost of liquor put to sale taking the previous history of profit where as the assessee has no past history and the liquor traders in Nalgonda District are sell ing the liquor as per PRP or even more than MRP. 5. The CIT(A) erred in relying upon the decision of ITAT, B-Bench, Hyderabad, in the case of M/s Kanaka Durga Wines, Hyderabad, in ITA No. 591/Hyd/2011, dt. 28/07/2011, since the volume of business, location of business and prof its in the case of Manjit Singh Bagga or M/s Kanaka Durga Wines, Hyderabad, cannot be compared with that of the assessee and also that each assessment proceedings are independent. 6. The CIT(A) ought to have upheld the understatement of sales deter....

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.... estimated that liquor trade contributes to Rs. 18,000 crores to the state exchequer but proportionate direct taxes are not realized by the income tax department. 6. It is also submitted that TDS and TCS rates have been prescribed by the CBDT after evaluating the profit margin in each trade. For the liquor trade, a rate of 1% TCS (and increased by surcharge and education cess) has been prescribed. If this rate is adopted, the net profit margin in the liquor trade exceeds 5%. 7. A provision for refund is provided to the assessee under unforeseen conditions where the assessee incurs losses or lesser profits. But after a perusal of the facts of these cases, there does not seem to be a case for loss or low profits. 8.....