TaxTMI 
TaxTMI 
2011 (12) TMI 744
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....at Madurai and arise out of the assessments completed under sections 143(3) read with 153A and 153C. 2. Shri S.Manoharan and his wife Smt. Uma Maheswari, assessees in these appeals before us, are running vegetarian restaurants under the name and style of "Murugan Idli Shop". They are running a chain of restaurants under the above brand name in different places and in different locations in same cities. There was a search operation conducted in the shops of Shri S.Manoharan at Madurai and Chennai and also at his residence at Chennai. In the course of search operations, certain details were collected relating to the income and investments of the assessees and notices were issued as a result of which assessments were completed in the hands of....
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....ar 2006-07 again the only ground is relating to addition sustained in respect of sales. The assessee Shri S.Manoharan has raised for the assessment year 2007-08 three grounds. The first ground relates to the estimate of profit; the second ground is with reference to a sum of ₹ 37,30,000/- stated to be an advance paid for purchase of property; and the third ground relates to addition in respect of ₹ 1,06,000/- made in the context of stamp duty. For the assessment year 2008-09, the ground is only in respect of estimate addition in respect of sales relating to jiggarthanda and the restaurant. 4. In respect of 5 appeals filed by Smt. Uma Maheswari for the assessment years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09, the grounds ....
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....is no force in the arguments of the assessees that the case of jiggarthanda should be considered as part of restaurant sales. It is not possible to accept the contention of the assessees that the sales of jiggarthanda had already been reflected in the sales of restaurant. On going through the unsatisfactory maintenance of accounts and details regarding the sales and other activities of the assessees, we find that an addition on estimate basis is necessarily justified. The assessing authority has computed the turnover after making additions and thereafter estimated the profit thereon. The Commissioner of Income Tax(Appeals) has ultimately estimated the profit at 15%. In a business like restaurant, there is no much difference between the quan....