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TMI Blog2019 (1) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly allowed. Seeking deduction of the remuneration and the interest paid to the partners from the interest which is estimated @ 3% of the cost of the goods put to sale - Held that:- In all the cases where we have estimated the income @ 3% of the cost of the goods put to sale; the contention of the respective assessee has been considered to hold that the net income of the assessee from business is 3% of the cost of the goods put to sale. Thus, the estimation itself takes care of the expenses such as remuneration and interest paid to the partners of the assessee-firm. Therefore, we find no reason to interfere with the order of the CIT (A) on this issue. - ITA No.283/Hyd/2018 - - - Dated:- 15-11-2018 - Smt. P. Madhavi Devi, Judicial M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position to produce the books of account and admitted the income on estimation basis. The AO estimated the income at 5% of the cost of goods put to sale at ₹ 49,87,489. Aggrieved, the assessee filed an appeal before the CIT (A) who upheld the order of the AO. Aggrieved, the assessee is in second appeal before us. 3. As regards grounds 2 and 3 with regard to estimation of income, we find that this issue is covered in favour of the assessee by various decisions of the Tribunal wherein we have upheld the estimation of income at 3% of the cost of goods put to sale. The relevant portion of the order of the Tribunal in the case of Sri Venkateswara Wines, Secunderabad in ITA No.1206/Hyd/2015 is reproduced hereunder for the sake of ready r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 No.2 3 are allowed. 5.1. In the case before us, the assessee is agreeable to the estimation of income at 3% of the cost of goods sold. As the facts before us are similar to the facts before the Tribunal in the case of Venkateswara W ines, Nizamabad (supra) 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 . 4. Respectfully following the decision of the Coordinate Bench (to which both of us are signatories), the AO is directed to estimate the net profit at 3% of the cost of goods put to sale. The assessee s appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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