2015 (11) TMI 1756

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.... 2011-12. In this appeal, the assessee is aggrieved by the order of the Ld. CIT(A) in confirming the estimation of income of the assessee @ 5% on the cost of goods sold. 2. Brief facts of the case are that the assessee filed its return of income for the A.Y. 2011-12 on 27.09.2011 admitting income of Rs. 3,73,010. During the assessment proceedings under section 143(3) of the I.T. Act, the A.O. ask....

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.... considered the decision of the ITAT in the case of ITO, Suryapet vs. Sri Beeravelli Venkat Reddy & others ITA.Nos. 148 to 177/Hyd/2012 dated 07.05.2012 wherein the Tribunal has confirmed the estimation of net profit at 5% of the purchase or stock put for sale during the year subject to the assessed income being not less than the returned income. Taking note of the said decision as well as the dec....

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.... also filed before us a copy of order of this Tribunal in the case of Venkateswara Wines, Nizamabad vs. ITO, Ward-1, Nizamabad in ITA.No.725/Hyd/2015 dated 04.09.2015 to which one of us i.e., Judicial Member is the signatory wherein the estimation of income at 2.5% of the turnover has been approved by the Tribunal. 4. The Ld. D.R., on the other hand, supported the orders of the authorities below ....

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....aving regard to the rival contentions and the material on record, we find that the AO has called for books of account of the assessee but the assessee had failed to produce the same. Therefore, AO had estimated the income of the' assessee at 2.5% of the turnover. The CIT wants the same to be estimated at 5% of the total turnover because the Tribunal in the case of an assessee carrying on the s....