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TMI Blog2017 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal raised by the assessee is allowed. Addition of unsecured loans - Held that:- On appeal before the CIT(A), no details were filed. Even before the Tribunal also, the assessee is not able to explain the genuineness of the transactions and also not filed any evidence in respect of the above impugned unexplained cash credits, therefore, find no infirmity in the order of the ld. CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... inate 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 failed to maintain stock regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent 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 16% is high and excessive consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue 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. The second ground of appeal relating to unsecured loans. In the assessment order, the Assessing Officer has noted that the assessee had claimed unsecured loans of ₹ 3,98,400/- from Smt. K. Padmavathi, and ₹ 6,48,475/- from K. Subba Rao. The Assessing Officer called the assessee to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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