TaxTMI 
TaxTMI 
2017 (12) TMI 612
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....ee declared total income of Rs. 5,94,023/-. Though, return was originally processed under section 143(1) of the Act, the same was reopened subsequently, since the matter was selected for scrutiny. During the course of hearing, it was noticed that the assessee was engaged in the business of stone crushing and also carried on business of purchase of IMFL from Andhra Pradesh Beverages Corporation Ltd. in respect of IMFL products. As per the records, the assessee made purchases of quantity worth Rs. 1,37,23,908/-. The assessee admitted sales of Rs. 1,87,61,260/-. Against the sales, income of Rs. 4,41,263/- was offered to tax, which works out to net profit rate of 2.3%. 4. Since the profit declared from business of IMFL is too low, the assess....
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....ee, thus works out to Rs. 59,09,500/-, which was paid in instalments. Out of which, an investment of Rs. 7,92,954/- was not properly explained with regard to source. Therefore, the addition of Rs. 7,92,954/- was made by observing as under:- "5. During the year the assessee claimed to have paid licence fee of Rs. 44,32,125/- besides pre paid licence of Rs. 14,77,375/-. Thus, the total licence fee paid was Rs. 59,09,500/-. Out of this, the first installment of licence fee was Rs. 19,69,833/- being 1/3 of the total amount. Besides this, he has also made investment towards FDR of Rs. 5,91,000/- and 1st Purchase of Rs. 3,00,000/- and 8G Commission of Rs. 3,21,681/-. Thus, the total investment made during the month of June, 2010 before t....
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.... Foreign Liquor. In the case of country liquor, the seller can fix the price according to the demand in the market, whereas in IMFL the MRP is fixed by the Government and all expenses such as, licence fee, salaries, shop rents and other miscellaneous expenses have to be borne by the dealer leaving net profit of 2% to 3% only. He relied upon several decisions of the ITAT, Visakhapatnam Bench in support of his plea that net profit rate of 3%, in this line of business, is reasonable. 9. Similarly, with regard to addition of Rs. 7,92,954/-, the main contention of the assessee is that when books are rejected, there cannot be any separate addition towards unproved cash credits. In this regard, he placed reliance on the decision of the Jurisdic....
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....rom all the persons is time consuming job. Hence, it could not be placed before the tax authorities. It may be noticed that most of them are not tax assessees and they are claimed to be petty vegetable vendors and daily labourers etc., who would not have been in a position to give loans. 16. Ld. Departmental Representative submitted that this additional evidence need not be admitted at this stage, since it is very difficult even to cross verify, since it was filed for the first time and even the confirmation letters do not prove their creditworthiness. 17. I have considered the rival submissions and carefully perused the records. 18. In IMFL business, few newspapers have no doubt mentioned about considered sale of liquor at a highe....