TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 20
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....,430/-. The return filed by the assessee was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act'). Later, after following the due procedure, assessment was completed u/s 143(3) of the Act by estimating the profit at 20% of the stock put to sale. 3. On appeal, the Ld. CIT(A) granted a partial relief to the assessee by scaling down the percentage from 20% to 10% and directed the A.O. to re-compute the income at 10% of purchase price. 4. On being aggrieved, assessee carried matter in appeal before the Tribunal. At the time of hearing, Authorized Representative for the assessee has submitted that the issue involved in this appeal is squarely covered by the decision of the coordinate bench of this Tribunal....
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.... It is the contention of the assessee that the net profit estimated by the A.O. is quite high when compared to the nature of business carried on by the assessee. It is further submitted that the case law relied upon by the assessee is not applicable to the facts of the present case. The case before the Hon'ble A.P. High Court was that the assessee is into the business of trading in arrack, whereas it is in the business of dealing in IMFL. The assessee further contended that IMFL trade was controlled by the State Government through A.P. State Beverages Corporation Ltd. and the prices of the products are fixed by the State Government. The assessee being a license holder of State Government cannot sell the products over and above the MRP fixed....
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....in view of a series of decisions of the ITAT Hyderabad bench in similar cases. The coordinate bench in case of ITA No.127/Hyd/12 and others dated 18.05.2012 as well as a number of other cases have held that profit in case of business in Indian made foreign liquor has to be estimated at 5% of the purchases made by the assessee. Therefore, following the decision of the ITAT Hyderabad bench, we set aside the order of the CIT(A) and direct the assessing officer to estimate the profit from the wine business of the assessee by applying the rate of 5% of the purchases made net of all other deductions. The assessing officer should also bear in mind that in no case the income determined should be below the income returned." 9. Considering the fact....
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.... 10. On being aggrieved, the assessee carried the matter in appeal before the Tribunal. 11. Before the Tribunal, the assessee has filed a petition under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 wherein he stated that "Whereas, it is submitted before this Hon'ble ITAT that the relevant evidence could not be produced before the lower authorities since the assessee, as he was perusing to gather the information, could not do so when the matter has come up before the lower authorities. Besides, assessee being illiterate is not aware of the Income Tax procedures, therefore, could not do the needful. This way the assessee was prevented by a reasonable cause, being unable to produce evidences before the authorities." 12. Le....