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TMI Blog2017 (9) TMI 1747X X X X Extracts X X X X X X X X Extracts X X X X ..... Raja Rajeshwari Wines within Nirmal Mandal. It has come to the notice of Assessing Officer that assessee was in receipt of Rs. 3,32,94,655/- towards sale of liquor but no return was filed declaring income therefrom. According to Assessing Officer the income chargeable to tax has escaped assessment and accordingly a notice was issued u/s 148 of the Act. In response thereto, assessee admitted a total income of Rs. 9,05,600/-. The case was taken up for hearing from time to time upon examination of the material furnished before A.O. He noticed that the purchases were to the tune of Rs. 3.34 Crs whereas sales were to the tune of Rs. 3.72 Crs resulting in a gross profit of 12.31%. It was also noticed that assessee carried on business of running a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n estimated at 3% as against 5% estimated by A.O. It was also contended that the income declared by the assessee is reasonable. 6. Ld. CIT(A) observed that there were several defects in the books of account as pointed out by A.O. and therefore invocation of provisions of section 145 is justified. He also observed that in number of decisions, the ITAT Hyderabad Bench had estimated income at 5% on stock put to sale. In case of Shri P. Ramaiah and others (ITA No. 1739/Hyd/2012, dated 21.3.2013), the Tribunal, by relying upon earlier decision in the case of M/s. Amaravathi Wine Shop (ITA No.1196/Hy/2011, dated 08.06.2012), observed that determination of profit at 5% of cost of goods put to sale is reasonable. Similarly, in following cases the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Pandu Vadda Baojna and (ii) ITA No.94/Hyd/2017 in the case of Sri Mushkam Sudershan Goud 9. It was also contended that in Basar area the business of selling of wines is not that much lucrative and thus assessee could not make targeted profit. It was further contended that the books of account were properly maintained for the subsequent years, duly audited u/s 44AB of the Act and based on such books of account income declared by the assessee was accepted by A.O. and thus estimate of income for this year is on higher side. 10. On the other hand Ld DR submitted that even as per the decision of Hon'ble Andhra Pradesh High Court referred to by the ITAT Hyderabad Bench in the case of Shri Pandu Vadda Baojna (supra) a uniform profi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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