9911796707
TMI Blog2017 (4) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... ured loan of ₹ 1,22,000/- . When Assessing Officer has treated the amount of ₹ 11,53,178/- as unexplained source again making addition of ₹ 1,22,000/- as unsecured loan, in my opinion, is not justified. Accordingly, the Assessing Officer is directed to delete the addition of ₹ 1,22,000/- made under section 68 of the Act. - Decided in favour of assessee. - ITA No. 347/VIZ/2016 - - - Dated:- 12-4-2017 - SHRI V. DURGA RAO, HON BLE JUDICIAL MEMBER For The Assessee : Shri N.V. Ramana Murthy CA. For The Department : Shri R.S. Aravindakshn - Sr.DR ORDER This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Appeals)-2, Guntur, camp at Visakhapatnam, dated 09/05/2016. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In this respect, the coordinate bench of the Tribunal in the case of Tangudu Jogisetty (supra) has considered the profit level in the line of business and decided that 5% of purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to re-compute the profit of the assessee. The relevant portion of the order is extracted as under: 8. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. estimated net profit of 20% on stock put for sale. The A.O. was of the opinion that the assessee has not maintained proper books of accounts and vouchers in support of purchases and sales. The A.O. further observed that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which was rendered under different facts to estimate the net profit. On the other hand, the Ld. A.R. for the assessee, relied upon the decision of ITAT, Visakhapatnam bench in the case of T. Appalaswamy Vs. ACIT in ITA No.65 66/Vizag/2012. We have gone through the case laws relied upon by the assessee in the light of the facts of the present case and finds that the coordinate bench of this Tribunal, under similar circumstances held that estimation of 5% net profit on purchases is reasonable. The relevant portion of the order is reproduced hereunder: 3. We have heard the parties, perused the orders of the revenue authorities as well as other materials on record. It is the contention of the Ld. A.R. that the estimation of profit at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y decision is placed on record by the revenue to take any other view of the matter than the view so taken by the coordinate bench. Therefore, we direct the A.O. to estimate the net profit of 5% on total purchases net of all deductions. Ordered accordingly. 7 . In view of the above decision of the coordinate bench of the Tribunal, I direct the A.O. to re-compute the income of the assessee at 5% of purchase price. Accordingly, this ground of appeal raised by the assessee is allowed. 8 . So far as addition of ₹ 1,22,000/- on account of unsecured loans is concerned, in the assessment order, the A.O. has observed that during the year, the assessee found to have accepted unsecured loan of ₹ 1,22,000/-. When asked to prove the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
