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TMI Blog2022 (7) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to the nature of business and the other attendant circumstances like market competition, high fluctuations, shortage of liquidity etc. With this view of the matter, we allow the contentions of the assessee and direct that the income of the assessee may be estimated at 5% of the gross receipts for the assessment year 2017-18 also. X X X X Extracts X X X X X X X X Extracts X X X X ..... red appeal before the Tribunal, vide order dated 30/07/2013 in ITA No. 54/Hyd/2013 and batch the Tribunal held that the income be estimated at 5% and no further deductions are to be allowed. 4. Ld. CIT(A), however, found from the 1st appellate order in assessee's own case for the assessment year 2008-09 that for the assessment year 2007-08, though the Tribunal estimated the income at 5% of the gross receipts, but subsequently there was a search and in the consequential assessment under section 153A of the Income Tax Act, 1961 (for short "the Act"), the 1st appellate authority estimated the same at 8% without any other deduction. Inasmuch as there are 2 orders for the same assessment year, one estimating at 5% by the Tribunal and another es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the assessee and direct that the income of the assessee may be estimated at 5% of the gross receipts for the assessment year 2012-13 also. 8. In respect of the addition of Rs. 7,37,935/- towards other income as shown in the P&L Account, it could be seen from the impugned order that the Ld. CIT(A) directed the learned Assessing Officer to verify the nature of income of Rs. 7,37,935/- and if it is found that this is a business receipt then there cannot be a separate addition after estimating the profit in relation to the gross receipts. He further directed that if such an amount is not to be found as business receipt then it has to be added separately under the head of 'other income'. With this observation Ld. CIT(A) allowed the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee at Rs. 22,81,666/-. 12. Aggrieved by the same, the assessee is before us in this appeal pleading for estimation of the income at 5% on the gross receipts and for this purpose placed reliance on the view taken by the Tribunal in assessee's own case for the assessment year 2007-08. 13. In the preceding paragraphs, while dealing with the issue for the assessment year 2012-13, we reached a conclusion that the estimate of income of the assessee at 5% of the gross receipts would be proper and would meet the ends of justice, having regard to the nature of business and the other attendant circumstances like market competition, high fluctuations, shortage of liquidity etc. With this view of the matter, we allow the contentions of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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