2018 (6) TMI 551

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...., assessee is an individual deriving income from retain trading in IMFL under the trade name of M/s. Sri Durga Wines. Assessee's books of account were rejected and income was estimated at 5% on the liquor put to sale. 3. Ld.CIT(A) after considering the submissions of assessee and various case law relied upon, considered the location of the business and determined the net profit at 4.5% of cost of goods sold as reasonable profit. 4. It was the submission that ITAT is confirming the estimation of income at 3% and requested for estimation of income at 3% and relied on the case of Shri Sridhar Ramagiri Vs. ITO in ITA No. 1924/Hyd/2017, dt. 23-05-2018. 5. After considering the rival contentions, we are of the opinion that income can be ....

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.... 3 to 5% of the goods put to sale and that the same has been upheld by the Hon'ble High Court of AP. The A.O. however, observed that the Hon'ble AP. High Court in the case of CIT vs. Kamlekar Shankar Lal in ITTA No. 21 of 2013 dated 23.07.2013 has estimated the net profit at 5% of the purchase or stock put to sale. He therefore, estimated the income at 5% of the goods put to sale and brought it to tax. Similarly, he also made an addition of miscellaneous receipts of Rs. 3,39,064. Aggrieved, assessee preferred an appeal before the CIT(A) who confirmed the order of the A.O. and the assessee is in second appeal before us. 3. At the time of hearing, Ld. Counsel for the assessee submitted that this issue is covered in favour of ....