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TMI Blog2017 (6) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... not filed evidence because the loan creditors are uneducated people. It appears to me that the explanation given by the assessee cannot be accepted for the reason that if at all assessee borrowed some loans, he has to submit all the details before the Assessing Officer and if Assessing Officer is not satisfied on any details, assessee has to make an appeal for admitting those details. In this case, the assessee has not made any attempt neither before the Assessing Officer nor before the ld.CIT(A). Before me, he simply submits that he has not submitted all the details of loan creditors because loan creditors are illiterates. This is not a ground to admit the additional evidence, therefore, prayer made by the assessee for admission of additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by the decision of the coordinate bench of this Tribunal where the Tribunal has scaled down the estimation of profit from 10% to 5% in the case of Tangudu Jogisetty in ITA No.96/Vizag/2016 by order dated 2.6.2016. 5. On the other hand, the Ld. D.R. strongly supported the orders passed by the authorities below. 6. I have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The only issue involved in this appeal is estimation of profit in respect of IMFL business carried by the assessee. 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 purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government cannot sell the products over and above the MRP fixed by the State Government. We find force in the arguments of the assessee for the reason that the A.O. has estimated the net profit by relying upon the decision of A.P. High Court in the case of CIT Vs. R. Narayana Rao in ITA No.3 of 2003 which is rendered under different facts. The A.P. High Court has considered the case of an arrack dealer, whereas, the assessee is into the business of dealing in IMFL. Therefore, we are of the view that the A.O. was not justified in relying upon the judgement, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined should be below the income returned. 9. Considering the facts and circumstances of this case and also respectfully following the ratios of coordinate bench, we are of the view that the net profit estimated by the A.O. by relying upon the decision of Hon ble A.P. High Court (supra), which was rendered under different facts is quite high. On the other hand, the assessee relied upon the decision of coordinate bench and the coordinate bench under similar circumstances estimated the net profit of 5% on total purchases net of all deductions. No contrary 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /06/2010. While the assessee was specifically asked to prove the above loans with necessary documentary evidences by way of bank accounts of the loan creditors to prove that have lent the amount from their accounts, through which they have claimed to have paid the above amounts. The assessee has not filed any evidence before the Assessing Officer. Therefore, the Assessing Officer has treated the entire amount of ₹ 7,37,200/- as income from other sources and the same is added to the income of the assessee. 9. On appeal, ld. CIT(A) confirmed the order of the Assessing Officer. 10. On being aggrieved, the assessee carried the matter in appeal before the Tribunal. Before me also, the assessee has filed the same details about the loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by the assessee cannot be accepted for the reason that if at all assessee borrowed some loans, he has to submit all the details before the Assessing Officer and if Assessing Officer is not satisfied on any details, assessee has to make an appeal for admitting those details. In this case, the assessee has not made any attempt neither before the Assessing Officer nor before the ld.CIT(A). Before me, he simply submits that he has not submitted all the details of loan creditors because loan creditors are illiterates. This is not a ground to admit the additional evidence, therefore, prayer made by the assessee for admission of additional evidence is rejected. 15 So far as merits of the case is concerned, the assessee has not filed any e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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