9911796707
TMI Blog2017 (6) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... ount to ₹ 7,99,000/-. The assessee has not given proper details during the course of assessment proceedings. However, before the ld. CIT(A), he filed details and confirmation letters, hence, ld. CIT(A) has called remand report. In the remand report, the Assessing Officer has doubted the transaction on the ground that assessee paid the impugned amounts by way of DDs, but those DDs were taken by the third parties and not by the assessee. As find that AO without calling the assessee and without making any enquiry, simply doubted the transaction, in my opinion, the action of the Assessing Officer is not justified. CIT(A) is also not justified in confirming the order of the Assessing Officer. It is a fit case to remit the matter back to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 order 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 purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. 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 case of T. Appalaswamy Vs. ACIT in ITA No.65 66/Vizag/2012. We have gone through the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances 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 profit of 5% on total purchases net of all deductions. Ordered accordingly. 7. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT(A) may be deleted. 11. On the other hand, Departmental Representative has submitted that this issue may be remitted back to the file of the Assessing Officer for re-examination. 12. Heard both sides and perused the records. I find that the assessee has filed the confirmation letters from four creditors amount to ₹ 7,99,000/-. The assessee has not given proper details during the course of assessment proceedings. However, before the ld. CIT(A), he filed details and confirmation letters, hence, ld. CIT(A) has called remand report. In the remand report, the Assessing Officer has doubted the transaction on the ground that assessee paid the impugned amounts by way of DDs, but those DDs were taken by the third parties and n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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