2012 (5) TMI 803 - AT - Income Tax

Summary

Issues involved: Estimation of profit of the assessees from the business of retail trade in liquor.

Summary:
The Appellate Tribunal ITAT Hyderabad heard two appeals by the Revenue against orders of the Commissioner of Income-tax(Appeals)- VI, Hyderabad. The appeals concerned the estimation of profit of the assessees from the business of retail trade in liquor for the assessment years 2007-08 and 2008-09. The assessing officer had found that the assessees were unable to produce evidence for their turnover in the form of sale bills. The officer computed the turnover by adopting profit margins and added the differences to the income of the assessees as suppressed turnover. On appeal, the CIT(A) directed the assessing officer to estimate the net profit at 3% of the purchases or stock put for sale during the year, based on a previous Tribunal decision. The Revenue appealed against the CIT(A) orders.

The Tribunal noted that the CIT(A) orders were based on a previous Tribunal decision and that other benches had consistently followed the same decision in similar cases. Therefore, the Tribunal found no issue with the CIT(A) orders and confirmed them. Consequently, the appeals of the Revenue were dismissed, and the orders were pronounced on 4.5.2012.