2018 (10) TMI 1944

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e learned CIT (A) confirming the estimation of income from wine shop at 5% of stock put to sale as against 3% being approved by the Tribunal is contrary to the principles of judicial discipline. 3. The action of the learned CIT (A) confirming the addition of Rs. 2,16,700 out of the addition of unexplained investment inspite of the favourable remand report by the AO, that too without putting it to the assessee. 4. The learned CIT (A) failed to appreciate that the partner who invested was in business for last several years and the amount is not high to hold that it could be unexplained and thereby erred in confirming the addition of Rs. 2,16,700. 5. Any other ground that may be urged at the time of hearing". 2. Brief facts of the c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s decisions of the Tribunal wherein we have upheld the estimation of income at 3% of the cost of goods put to sale. The relevant portion of the Tribunal in the case of Sri Venkateswara Wines, Scunderabad in ITA No.1206/Hyd/2015 is reproduced hereunder: "5. Having regard to the rival contentions and the material on record, we find that the assessee has not maintained any books of account and therefore, the estimation of income is justified. It is only the rate at which the income is to be estimated 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 Wines, Nizamabad (supra), the Coordinate Bench of....