TaxTMI 
TaxTMI 
2019 (5) TMI 426
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was converted to scrutiny under CASS and notices u/s 143(2) and 142(1) of the Income-tax Act, 1961 (in short 'the Act') were issued and served on the assessee. The AO completed the assessment u/s 143(3) of the Act on 03/03/2016 by estimating the income of the assessee at 5% of Rs. 17,37,984/- towards stock sold/stock put for sale of Rs. 3,47,59,676, Rs. 55,516/- towards income from other sources and Rs. 31,09,500/- towards unexplained cash credits u/s 68 of the Act. 3. When the assessee preferred an appeal before the CIT(A), the CIT(A) confirmed the order of AO. 4. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising the following grounds of appeal: "1) The order of the learned Commissioner of Income-tax (Appea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ome 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 Wines, 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 ITA.No.1198/Hyd/2015 Sai Venkateswara Wines, Secunderabad the case of CIT vs. Kamlekar Shankar Lal (supra) to hold as under : "6. Having 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 estimate....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... amount of Rs. 31,09,500/- is the cash credits appearing in cash book in the name of Sri Bhupalreddy which was credited to his capital account from 04-06-2012 to 04-07-2012 and the balance amount of Rs. 30,00,000/- was introduced on various dates after 04-07-2012, which was duly reflected from earlier drawings made by Sri Bhupal reddy from the cash balances available in the cash book. AO noted that initial amount of Rs. 31,09,500/- was introduced by the assessee towards his contribution to meet the expenditure of license fee and bank guarantee fixed deposits which are required to be made to get the license. Thus an amount of Rs. 31,09, 500/- stands to be explained. During the course of hearing on 22.01.2016, the AR submitted that the initia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ht to tax u/s 68 of the IT Act. On appeal, the CIT(A) confirmed the said addition. 9. Before us, ld. AR of the assessee filed a petition for admission of the following additional evidences, submitting that the same were not filed before the AO and CIT(A), as they were not readily available, hence, the same are submitted before the ITAT for the first time as additional evidence. He submitted that these documents are necessary evidences for deciding the matter, prayed to admit as additional evidence: S.No. Particulars Page Nos. at paper book 1 Confirmation letter along with returns of income, computation of total income and financial statements for the AY 2012-12 and AY 2011-12 22-32 2 Details of amounts received form close rel....