TaxTMI 
TaxTMI 
2017 (8) TMI 448
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....l income of Rs. 3,50,245/-. 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 due process, assessment was completed u/s 143(3) of the Act by estimating net 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 the purchase price. 4. On being aggrieved, assessee carried matter in appeal before the Tribunal. At the time of hearing, Learned Authorised Representative for the assessee has submitted that the issue involved in this appeal is squarely covered by the decision of the coo....
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....elying upon the decision of Hon'ble A.P. High Court. 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 c....
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...., we are of the view that the issue is no more res integra 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 shou....
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....as submitted that loans were taken from his friends and relatives, however assessee has not filed any details before the Assessing Officer. The Assessing Officer assessed the amount of Rs. 6,92,234/- as unexplained cash credits and same is added to the total income of the assessee. The Assessing Officer further noted that the assessee has credited an amount of Rs. 93,769/- to the trading account, no details were filed and no explanation was also given, hence, above amount is also added to the total income of the assessee. 9. On appeal before the CIT(A), assessee except stating that amounts were borrowed from his friends and relatives, no evidence was filed. Therefore, ld.CIT(A) has confirmed the order of Assessing Officer. 10. Aggriev....