9911796707
TMI Blog2022 (12) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... he copy of certificate from the VRO regarding agricultural income along with other documents. Although, during the remand proceedings, the assessee did not appear, however, these documents were very much available with the AO and he could have conducted necessary enquiries. However, the AO was waiting for the assessee to appear and did not conduct any independent enquiry. Since, the agricultural income shown by the assessee is very less and since the assessee had filed a certificate from the VRO regarding the agricultural income along with other documents, therefore, considering the totality of the facts of the case including the smallness of the amount and this being an old matter, we direct the AO to restrict such disallowance to 10% of the income shown. Assessee ground is partly allowed. - ITA Nos.1622 & 1623/Hyd/2019 - - - Dated:- 20-12-2022 - Shri Raj Pal Yadav, Vice President And Shri Rama Kanta Panda, Accountant Member For the Assessee : Ms. S.Sandhya, Advocate For the Revenue : Shri K.P.R.R.Murthy, Sr.AR ORDER PER SHRI RAMA KANTA PANDA, A.M. The above two appeals filed by the assessee are directed against the separate orders dated 04.09.2019 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover. Rejecting the various explanations given by the assessee and observing that the assessee in his reply dated 20.11.2018 has conceded the net profit @5%, the AO applied the profit rate of 8% on the turnover of Rs.1,78,87,500/- and thereby worked out the profit of Rs.14,31,000/-. After considering the income already declared by the assessee at Rs.4,66,000/-, the AO made addition of Rs.9,65,000/- being the difference between the profit estimated by him and the profit declared by the assessee. 7. The AO further noted that assessee had shown agricultural income of Rs. 1,05,000/- for the impugned assessment year. However, the assessee has not claimed any agricultural expenses as deduction. He, therefore, asked the assessee to furnish details of crops grown, sold and bills raised in respect of the agriculture produce, the mode of receipt of the sale proceeds of agriculture produce, the parties to whom sold, proof of expenditure incurred, if any, etc. In absence of any satisfactory explanation given by the assessee and observing that assessee could not specify the nature of crops grown or the quantum of agricultural produce, the AO estimated such agricultural income at Rs.52,500/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013-14 and submitted that under identical circumstances the Tribunal has estimated the income at 3%. She accordingly submitted that in the interest of justice, the profit from liquor business should be estimated at 3% of the turnover. 13. The ld. DR on the other hand heavily relied on the order of the ld.CIT(A). He submitted that assessee during the course of assessment proceedings as well as appellate proceedings before the ld.CIT(A) has admitted the profit rate at 5% of the turnover. Further, the assessee has not maintained any books of accounts nor produced the same either during the course of search proceedings or post search enquiries or during the course of assessment proceedings. Under these circumstances, the profit was rightly estimated at 5% of the turnover by the ld.CIT(A) and therefore, the assessee should not have any grievance. 14. We have heard the rival arguments made by both the sides, perused the orders of the AO and the ld.CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the assessee in the instant case is engaged in liquor business and did not maintain any books of accounts n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate from VRO regarding agricultural income along with other documents and considering the remand report of the AO sustained the addition made by the AO. It is the submission of the ld. counsel for the assessee that since the assessee has filed the copy of the certificate from VRO regarding the agricultural income along with other documents and the agricultural income is very less, therefore, the same should have been accepted and no addition should have been sustained. It is the submission of the ld. DR that when the assessee failed to produce any evidence for sale of agricultural produce and the details called for by the AO, the addition was rightly sustained by the ld.CIT(A). 17. We find admittedly the assessee, during the course of assessment proceedings, had not produced the requisite details as called for by the AO. However, before the ld.CIT(A), the assessee had filed the copy of certificate from the VRO regarding agricultural income along with other documents. Although, during the remand proceedings, the assessee did not appear, however, these documents were very much available with the AO and he could have conducted necessary enquiries. However, the AO was waiting f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
