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TMI Blog2018 (6) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... etain business in IMFL. There is no allegation that these amounts also pertain to the business by the AO. Since the deposits are through-out the year in small amounts and since the corresponding credits in the books of account are not verified by the AO and the books of account having been rejected, we are of the opinion that the deposits can be telescoped to the income estimated on the business - deposits in the bank account need not be separately assessed, when income was estimated more than what assessee has disclosed - direct the AO to delete the addition - I.T.A. No. 1873/HYD/2017 - - - Dated:- 8-6-2018 - Smt. P. Madhavi Devi, Judicial Member And Shri B. Ramakotaiah, Accountant Member For Assessee : Shri A. Srinivas, AR Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tories) have held 3% of the cost of goods put to sale to be reasonable estimation of income. For the sake of clarity and ready reference, relevant paragraphs are reproduced hereunder: 2. Brief facts of the case are that the assessee-firm which is in the business of wholesale and retail sale of liquor, filed its return of income for the AY. 2011-2012 on 28.09.2011 admitting income of ₹ 52,25,566. The assessment proceedings under section 143(3) read with section 147 of the Act were initiated and during the said assessment proceedings after verification of various details filed by the assessee, the A O. found that the assessee has offered low gross profit of 11.01% as against the gross profit margin of retail at 24% as per the G.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signatories, we direct the A.O. to adopt 3% of the cost of goods sold as the income of the assessee. The Ld. Counsel for the assessee did not argue ground Nos. 4 and 5 and therefore, the same are rejected as not pressed . 5.1. Respectfully following the same, we direct the AO to consider 3% of the income of assessee subject to the above amount not being less than the profit already disclosed by assessee. In that event, the income disclosed by assessee should be accepted. 6. The other issue contested is about addition of ₹ 1,60,000/-. AO found that assessee has maintained the bank account with Andhra Bank and during the period from 01-04- 2011 to 31-03-2012, ₹ 1,60,000/- was found to be deposited by assessee. AO was of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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