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Income Tax Appellate Tribunal, HYDERABAD BENCHES “SMC”, HYDERABAD
Before: SHRI S.S.GODARA
O R D E R This assessee’s appeal for AY.2016-17 arises from the CIT(A)-2, Hyderabad’s order dated 19-11-2019 passed in appeal No.10038/2019-20/CIT(A)-2, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.
It transpires at the outset that the assessee’s sole substantive grievance raised herein seeks to reverse both the lower authorities’ action rejecting his books of accounts, thereby estimating profits @5% in liquor business.
Learned counsel vehemently contended that this tribunal’s co-ordinate bench’s order in assessee’s case(s) itself in earlier assessment years in & 472/Hyd/2018 estimate similar profits to 3% only. I find no reason to express my agreement with the assessee’s foregoing contentions in entirety. It is made clear that estimation of profits in the course of any business is purely a factual issue carrying no precedent value. The fact also remains that neither the Assessing Officer nor the CIT(A) have drawn any comparables before arriving at assessee’s profit estimation @5%. I deem it in the above facts and circumstances that the above estimation of income @3.5% would be just and proper with a rider that the same shall not be treated as a precedent.
This appeal of assessee is partly allowed in foregoing terms.
Order pronounced in the open court on 22nd February, 2021