9911796707
TMI Blog2018 (11) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... rtly in favour of assessee - I.T.A. No. 45/HYD/2018 - - - Dated:- 27-7-2018 - Shri B. Ramakotaiah, Accountant Member For the Assessee : Shri T. Chaitanya Kumar, AR For the Revenue : Shri J. Pavitran Kumar, DR ORDER This is an appeal by assessee against the order of the Commissioner of Income Tax (Appeals)-7, Hyderabad, dated 01-09-2017, confirming the action of the Assessing Officer (AO) in rejecting the books of account, but estimated the net profit at 4% of the cost of the goods sold as against 5% assessed by AO. 2. Brief facts of the case are that, assessee is an individual, in the business of liquor, filed his return of income for the assessment year under consideration, admitting total income of ₹ 9,96,48 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee by the decision of Co-ordinate Bench in the case of Secunderabad Wines Vs. ITO in ITA No. 181/Hyd/2016, dt. 20-07-2016, wherein that Bench has followed the decision of A Bench of this Tribunal in the case of Sri Venkateswara Wines in ITA No. 1206/Hyd/2015, dt. 27-11-2015, wherein after taking into consideration similar circumstances, the Tribunal has upheld the estimation of income at 3% of the cost of the goods sold. 5.1. In the case of Suraj Harjani Vs. ITO in ITA No. 1745/Hyd/2017, dt. 11-04-2018, the Co-ordinate Bench has held as under: 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 inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sonable 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 . 5.2. Respectfully following the same, I direct the AO to adopt 3% of the cost of the goods sold as income of assessee, subject to not being less than the returned income. Since assessee did not press for the grounds about rejection of books of account, the grounds pertaining to that extent are rejected. 6. In the result, the appeal of assessee is partly allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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