9911796707
TMI Blog2012 (8) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... rious other submissions of Revenue, we set aside the order of the CIT(A) and direct the AO to estimate net profit at 5% of the purchases or stock put for sale during the year subject to the assessed income not less than returned income – Decided partly in favor of Revenue. - ITA NO. 1196/Hyd/2011 - - - Dated:- 8-6-2012 - SMT. ASHA VIJAYARAGHVAN, AND SHRI D. KARUNAKARA RAO, JJ. Appellant by : Mr. Gangadhar Panda ORDER PER ASHA VIJAYARAGHAVAN, J.M: This appeal filed by the Revenue is directed against the order passed by the CIT(A) VI, Hyderabad on 29/03/2011, for assessment years 2007-08. 2. Brief facts of the case are that the assessee is carrying on the business of retail trade in liquor under the name and style of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). Before the CIT(A), it was contended that there was stiff competition in the business carried on by the assessee and therefore they cannot sell the liquor at the MRP rates fixed by the Government and were bound to sell the same at a lower price. After considering the submissions of the assessee, the CIT(A) deleted the disallowance made by the Assessing Officer observing that the MRP fixed by the Government may be an indicator for knowing the general price of the product but the same cannot be considered as the price for which the sales were effected by the assessee. Unless the Assessing Officer lay his hands on specific information with regard to sale price other than that was recorded in the account books he cannot disturb the same. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions, wherein it was stated as under:- 1. In the case of M/s Kanakadurga Wines Vs. ITO, Ward-9(3), Hyderabad(591/Hyd/2011, the Hon ble ITAT had upheld the rejection of books of account and also estimation of GP@30% of sales. 2. The Hon ble ITAT had directed that the net profit be estimated @ 3% of purchases. This was done after verifying the previous history of business done by the assessee. The Hon ble ITAT had followed the same decision in some other cases. 3. However, in these cases, there is no previous business done by the assessee to verify. The Assessing Officer has relied on the business practices in this trade where the sale price is much above that fixed by the Excise Dept. i.e. more than MRP. The media have reported nume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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