TaxTMI 
TaxTMI 
2017 (6) TMI 171
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....rocessed 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 net profit, clear off all expenses 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 where the Tribuna....
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....ion 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 by the State Gove....
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....es 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 facts and circumstanc....
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....lier year, for which he filed a copy of return of income along with balance sheet to prove his claim. After allowing credit for such capital, the balance amount of Rs.7,37,200/-, for which the assessee sought to explain that during the year, assessee accepted two unsecured loans aggregating to Rs.2,74,000/-. The assessee furnished confirmations as per which, he accepted a loan of Rs. 1 lakh from Shri V.Bhanu Prasad vide account payee cheque No. 276851, dated 15/07/2010 and Rs. 1,74,000/- from one Boyina Ramesh by way of transfer into his account on 28/06/2010 of Rs. 1,57,000/- and Rs. 17,000/- on 28/06/2010. While the assessee was specifically asked to prove the above loans with necessary documentary evidences by way of bank accounts of the....
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....ed before the lower authorities as the parties from whom the confirmations are to be obtained were ignorant of the importance of these evidences and hence, did not respond promptly. Under these circumstances, the assessee could not produce these evidences within the prescribed time to substantiate the case. This way the assessee was prevented by a reasonable cause, being unable to produce evidences before the authorities." 14 From the above, it appears that the assessee has not filed evidence because the loan creditors are uneducated people. It appears to me that the explanation given by the assessee cannot be accepted for the reason that if at all assessee borrowed some loans, he has to submit all the details before the Assessing Officer....