9911796707
TMI Blog2015 (11) TMI 1756X X X X Extracts X X X X X X X X Extracts X X X X ..... of Venkateswara Wines, Nizamabad (2015 (9) TMI 1616 - ITAT HYDERABAD) and the uniform rate of profit cannot be adopted in the case of every assessee in similar business, we allow ground No.2 of the assessee. Remuneration paid to the partners to be allowed to be deducted from the estimated income - Held that:- We find that the same is not allowable as the income of the assessee itself has been estimated on the cost of the goods sold and not on the turnover or receipts of the assessee. - ITA.No.1198/Hyd/2015 - - - Dated:- 20-11-2015 - Smt. P. Madhavi Devi and Shri S. Rifaur Rahman, JJ. For Assessee : Mr. P. Prasad For Revenue : Mr. K. E. Sunil Babu ORDER Smt. P. Madhavi Devi, This is assessee s appeal for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessed income being not less than the returned income. Taking note of the said decision as well as the decision of Hon ble High Court of A.P. in the case of CIT vs. Kamlekar Shankar Lal ITTA.No.21 of 2013 dated 23.07.2013, A.O. proceeded to estimate the net profit from the sale of beverages at 5% of the goods put to sale i.e., opening stock plus 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 assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee but the assessee had failed to produce the same. Therefore, AO had estimated the income of the' assessee at 2.5% of the turnover. The CIT wants the same to be estimated at 5% of the total turnover because the Tribunal in the case of an assessee carrying on the same business of sale of IMFL has estimated the income at 5% of the turnover. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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