9911796707
TMI Blog2018 (3) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of credit, identity and credit worthiness of the creditor. Since the assessee failed to establish any of the requirements, we do not find any reason to interfere with the order of the Ld.CIT(A) and the same is upheld. - Decided against assessee. - I.T.A.No.92/Viz/2016 - - - Dated:- 9-3-2018 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri C.Subrahmanyam, AR For The Respondent : Shri M.R.Bangari, DR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal is filed by the assessee against the order of the Commissioner of Income-Tax (Appeals) [CIT(A)]-2, Visakhapatnam vide ITA No.177/2014-15/ITO/W-1/SKL/2015-16 dated 01.01.2016 for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. We 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 re-compute the profit of the assessee. The relevant porti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 laws relied upon by the assessee in the light of the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atios 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 of the above decision of the coordinate bench of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explain the source for the impugned amount of ₹ 8,50,165/- made prior to commencement of business. Hence, it is held that the AU is justified in making the impugned addition of ₹ 8,50,165/-. 5.3. The assessee has raised a plea in the appeal papers that once the books of account are rejected, then the AU is not justThed in making addition to cash credits with reference to the same books of account. In support, the assessee relied on the decision of the Hon ble AP High Court in the case or Maddi Sudarshanam Oil Mills Co. v. CIT(37 ITR 369) and Indwell Constructions v. CIT(232 ITR 776 AP). In this regard, it is relevant to note a similar issue as to whether addition u/s.68 or 69 could be made when the AO has estimated the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
