9911796707
TMI Blog2011 (12) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the assessee is directed against the order passed by the CIT(A) Vijayawada dated 28.2.2011 and pertains to the assessment year 2006-07. 2. Brief facts of the issue are that the assessee is a dealer in sale of IMFL and disclosed an income of ₹ 1,23,849/-. The ITO Ward 9(3) passed order u/s 147 of the IT Act, 1961 assessing income at ₹ 43,47,300/- against the return of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they are not evidenced by proper proof. The CIT(A) confirmed the above additions. 4. Aggrieved the assessee is in appeal before us and raised the following grounds: 2. Both the Assessing Officer and the CIT(A) Vijayawada have been unfair and unjust in fixing the achievable gross margins by adopting the highest prescribed margins. CIT(A) Vijayawada has unfortunately relied upon certain errone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd perused the material available on record. It is an admitted fact that the maximum retail price of the liquor products is fixed at 30% over the cost price of the assessee as per the understanding with APBCL. It is also an admitted fact about its inability to maintain the cash sales bills and accordingly one books of accounts maintained by the assessee cannot be relied upon. Under these circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales. The coordinate Bench of the Tribunal in the case of Manjit Singh Bagga Vs. ITO in ITA No.371 and others dated 30th September, 2010 held that the estimation of net profit at 3% is reasonable. In view of this matter, ends of justice would be met if we estimate the net profit of the assessee at 3% of the purchases or stock put for sale during the year under consideration as against the estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the profit is estimated by rejecting the books of account, all the expenditure including other heads of expenditure are deemed to be allowed. Therefore, once the profit is estimated there should not be any further addition on this count. Therefore this ground raised by the assessee is allowed. 8. In the result, the assessee s appeal is partly allowed. Order pronounced in the open Court 16.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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