2019 (1) TMI 889

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.... Nilanjan Dey, DR ORDER PER SMT. P. MADHAVI DEVI, J.M. This is assessee's appeal for the A.Y 2014-15 against the order of the CIT (A)-6, Hyderabad, dated 03.10.2017. The assessee has raised the following grounds of appeal: "1. The order of the learned CIT (A) is erroneous both on facts and in law. 2. The learned CIT (A) erred in rejecting the books of account and resorti....

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.... income of Rs. 6,80,940. During the assessment proceedings u/s 143(3) of the Act, the AO required the assessee to produce the books of account. The assessee submitted that it is not in a position to produce the books of account and admitted the income on estimation basis. The AO estimated the income at 5% of the cost of goods put to sale at Rs. 49,87,489. Aggrieved, the assessee filed an appeal be....

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....d is before us. A.O. has estimated the income at 5% of the cost of goods sold, while the assessee is seeking the estimation at 3% of the cost of goods sold. We find that in the case of Venkateswara W ines, Nizamabad (supra), the Coordinate Bench of this Tribunal has taken note of the decision of Hon'ble High Court of Telangana and Andhra Pradesh in the case of CIT vs. Kamlekar Shankar Lal (sup....

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....volved in each and every case. Therefore, in our view, there is no error committed by the AU in estimating the profit at 2.5% of the total turnover. Thus grounds of appeal No.2 & 3 are allowed." 5.1. In the case before us, the assessee is agreeable to the estimation of income at 3% of the cost of goods sold. As the facts before us are similar to the facts before the Tribunal in the case o....