9911796707
TMI Blog2018 (2) TMI 1775X X X X Extracts X X X X X X X X Extracts X X X X ..... e income of the assessee. - ITA. No.1515/Hyd/2017, 1516/Hyd/2017, 1517/Hyd/2017, 1518/Hyd/2017 - - - Dated:- 8-2-2018 - Shri D. Manmohan, J. For Assessees: Shri P. Vinod For Revenue : Shri H. Phani Raju, DR ORDER D. Manmohan, VP. These appeals pertain to different assessees but arise out of identical orders passed by Ld. CIT(A)-5, Hyderabad. All the appeals pertain to A.Y. 2013-14 and the issue involved therein is also same. I therefore proceed to dispose of these appeals together for the sake of convenience. 2. The common grounds urged by the assessees read as under:- 1. The order of the Ld. CIT(A) confirming the order of the A.O. is erroneous both on facts and in law in so far as it is prejudicial to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion they had to pay huge excise license fees and ordinarily in this line of business the net profit would not be more than 3%. The A.O. observed that the assessee has shown the gross profit of ₹ 44,37,994/- which works out to GP rate at 10.27% whereas the Net Profit declared was only 0.90%, which is very low. He therefore estimated the profit @ 5% on goods put to sale by relying on a decision of the ITAT Hyderabad Benches in the case M/s. Kanaka Durga Wines (ITA No.462/Hyd/2011). In the case of Shri Bakkashetty Laxman, the assessee declared GP margin of 14.90% whereas Net Profit works out to ₹ 1.64% which was also considered as low and therefore, the A.O. estimated the Net Profit @ 5%. In the case of N. Satyanarayana, who is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the written submissions and order copies of the ITAT Hyderabad Benches. Assessment orders in the case of other assessees, who are similarly situated and carrying on the business in and around Nirmal, were filed to highlight that the Assessing Officers have consistently estimated the income @ 3% on the stock put for sale by passing reasoned orders u/s 143(3) of the Act. In the absence of any material to contradict the facts, the decisions rendered by the Tribunal in 2016 and 2017 deserve to be preferred rather than the orders which are rendered on different set of facts. It may be noticed that the Assessing Officer in the case of Shri Sanga Rao Amber (Page 18 of the paper book) took into account the contention that the reason for low profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013-14 143(3) 8. He also relied upon the following decisions of the ITAT wherein the estimate of Net Profit @ 3% of the cost of the goods sold was accepted by the Tribunal:- (1) ITA No. 1206/Hyd/2015 in the case of Sri Venkateswara Wines, dated 27.11.2015; (2) ITA No.181/Hyd/2016 in the case of Secunderabad Wines, dated 20.07.2016 and (3) ITA No.94/Hyd/2017 in the case of Late Shri Mushkam Sudershan Goud (Rep. by L/R elder son Mushkam Amar Kiran Goud 9. He thus submitted that in the given factual matrix, the A.O. as well as the Ld. CIT(A) ought to have accepted the plea of the assessee that the Net Profit should not exceed 3%. 10. On the other hand, the Learned Departmental Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
