9911796707
TMI Blog2015 (11) TMI 1746X X X X Extracts X X X X X X X X Extracts X X X X ..... cost of the goods sold and not on the turnover or receipts of the assessee. - Decided against assessee. - ITA.No.1206/Hyd/2015 - - - Dated:- 27-11-2015 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER For Assessee : Mr. P. Prasad For Revenue : Mr. K. E. Sunil Babu ORDER PER S. RIFAUR RAHMAN, A.M.: This is assessee s appeal for the A.Y. 2011-12. In this appeal, the assessee is aggrieved by the order of the Ld. CIT(A) in confirming the estimation of income of the assessee @ 5% on the cost of goods sold. 2. Brief facts of the case are that the assessee filed its return of income for the A.Y. 2011-12 on 28.09.2011 admitting income of ₹ 8,75,710/-. During the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lus purchases made and reduced by the closing stock, including discount received. The same worked out to ₹ 15,07,663 which was brought to tax. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) who confirmed the order of the A.O. and the assessee is in second appeal before us. 3. The Ld. Counsel for the assessee, Mr. P. Prasad, reiterated the submissions made by the assessee before the authorities below and has prayed that the estimation of the net profit be restricted to 3% of the cost of goods sold. In respect of this contention, he has also filed before us a copy of order of this Tribunal in the case of Venkateswara Wines, Nizamabad vs. ITO, Ward-1, Nizamabad in ITA.No.725/Hyd/2015 dated 04.09.2015 to which one of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This, in our view, is not justified as held by the Coordinate Bench of this Tribunal. The uniform net profit cannot be adopted in each and every case of similar business. Estimation of net profit must be on the basis of facts involved in each and every case. Therefore, in our view, there is no error committed by the AU in estimating the profit at 2.5% of the total turnover. Thus grounds of appeal No.2 3 are allowed. 5.1. In the case before us, the assessee is agreeable to the estimation of income at 3% of the cost of goods sold. As the facts before us are similar to the facts before the Tribunal in the case of Venkateswara Wines, Nizamabad (supra) and the uniform rate of profit cannot be adopted in the case of every assessee in simila ..... X X X X Extracts X X X X X X X X Extracts X X X X
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