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TMI Blog2018 (4) TMI 1611X X X X Extracts X X X X X X X X Extracts X X X X ..... me @ 3% would be reasonable on the facts of the case. However, AO is directed to keep in mind that the estimated income does not fall less than the profit declared by assessee, in which case the profit declared by assessee should be accepted. Subject to above direction, AO is directed to estimate the profit @ 3% of the cost of stock put to sale and re-determine the total income, accordingly. - Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 44,50,847/-. Assessee contended before the Ld.CIT(A) that the Tribunal in the case of Venkateswara Wines, Nizamabad has held that profit can be estimated @ 2.5% and requested the CIT(A) to adopt the same. However, Ld.CIT(A) relying on various other cases of the Tribunal, confirmed the action of AO in determining the profit @ 5% of the cost of stock put to sale. Hence, assessee is aggrieved. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12/Hyd/2017, dt. 21-09-2017, submitted that ITAT is confirming the estimation of income at 5%. 5. We have considered the rival contentions and perused the material on record. There is no dispute with reference to the fact that books of account are to be rejected and the income is to be estimated. AO estimated the income @ 5% relying on various Co-ordinate Bench decisions, which was confirmed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as impact of the High Court directions were taken into consideration for the purpose of estimating the net income @ 3% and in fact in the later decisions of the Tribunal, the net income was estimated @ 3% of the cost of goods sold. Under these circumstances, consistent with the view taken by the Tribunal, cited (supra), I direct the A.O. to adopt 3% of the cost of the goods sold as the income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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