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TMI Blog2018 (10) TMI 1944X X X X Extracts X X X X X X X X Extracts X X X X ..... an a/c, etc., and has accepted that the sources for ₹ 32,50,000 are explained. Even with regard to the balance of ₹ 2,16,000, the AO has held that considering the fact that the assessee is into business since long, the statement of the assessee alongwith the evidences may be accepted. We find that the CIT (A) has however, has not accepted on the ground that the assessee has not produced the evidence. Since admittedly the assessee is in this business for long and the AO has accepted the assessee s contention of the availability of funds of ₹ 2,16,000 from the earlier years after verification, we are of the opinion that the CIT (A) ought to have deleted even the addition of ₹ 2,16,000. Therefore, grounds 3 4 are allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y 2014-15 on 29.09.2014 declaring total income of ₹ 11,99,840. During the assessment proceedings u/s 143(3) of the Act, the AO required the assessee to produce the books of account. The assessee submitted that it is not in a 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. 3. Thereafter, the AO verified the P L A/c and observed that the assessee was required to pay ₹ 78,18,750 as license fee and the assessee has paid the same. The assessee was required to produce the sources for the first instalment of ₹ 34,66,700 as the balance was paid through business receipts. Due to the failure of the assessee to produce the evi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... radesh in the case of CIT vs. Kamlekar Shankar Lal (supra) to hold as under : 6. Having regard to the rival contentions and the material on record, we find that the AO has called for books of account of the assessee but the assessee had failed to produce the same. Therefore, AO had estimated the income of the' assessee at 2.5% of the turnover. The CIT wants the same to be estimated at 5% of the total turnover because the Tribunal in the case of an assessee carrying on the same business of sale of IMFL has estimated the income at 5% of the turnover. This, in our view, is not justified as held by the Coordinate Bench of this Tribunal. The ITA.No.1206/Hyd/2015 Sai Venkateswara Wines, Secunderabad uniform net profit cannot be adopted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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