T. Ratnagiri Konda, Srikakulam V. The ITO, Srikakulam

ITA 197/VIZ/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6798 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 19-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Rejection of books of accounts; Business income; Income from undisclosed sources; Assessment record
• Section: 143(3); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 197 / VIZ /201 6 (ASST. YEAR : 20 11 - 1 2 ) T IRUMAL RATNAGIRI KONDA, PLOT NO.20, BANKERS COLONY, BEHIND DEEPA MAHAL, SRIKAKULAM. V . ITO, WARD - 1 , SRIKAKULAM. PAN NO. ACHPT 9724 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI - ADV OCATE . DEPARTMENT BY : SHRI M.N. MURTHY NAIK SR. DR DATE OF HEARING : 22 / 0 8 /201 7 . DATE OF PRONOUNCEMENT : 30 / 0 8 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , RAJAHMUNDRY , DATED 03 /0 2 /201 6 FOR THE ASSESSMENT YEAR 2011 - 12 . 2. GROUND NOS. 1 TO 3 ARE RELATES TO ESTIMATION OF PROFIT ON PURCHASE PRICE. 3. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIVIDUAL CARRYING ON BUSINESS OF PURCHASE AND SALE OF IMFL (INDIAN MADE FOREIGN LIQUOR) IN SRIKAKULAM DISTRICT. THE ASSESSEE HAD FILED HIS RETURN OF INCOME BY DECLARING TOTAL INCOME OF 6,77,340/ - WHICH WAS PROCESSED U/S 143(1) 2 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT'). LATER ON , CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT BY ESTIMATING INCOME AT 20% OF THE STOCK PUT TO SALE. 4 . ON A PPEAL, THE LD. CIT(A) SCAL ED DOWN THE PERCENTAGE FROM 20% TO 10% AND DIRECTED THE A.O. TO RE - COMPUTE THE INCOME AT 10% OF PURCHASE PRICE. 5 . ON BEING AGGRIEVED, ASSESSEE CARRIED MATTER IN APPEAL BEFORE THE TRIBUNAL. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ISSUE INVOLVED IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL WHERE THE TRIBUNAL HAS SCALED DOWN THE ESTIMATION OF PROFIT FROM 10% TO 5% IN THE CASE OF TANGUDU JOGISETTY IN ITA NO.96/VIZAG/2016 BY ORDER DATED 2.6.2016. 6 . ON THE OTHER HAND, THE LD. D.R. STRONGLY SUPPORTED THE ORDER S PASSED BY THE AUTHORITIES BELOW. 7 . WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS ESTIMATION OF PROFIT IN RESPECT OF IMFL BUSINESS CARRIED BY THE ASSESSEE. IN THIS RESPE CT, THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF TANGUDU JOGISETTY (SUPRA) HAS CONSIDERED THE PROFIT LEVEL IN THE LINE OF BUSINESS AND DECIDED THAT 5% OF PURCHASE PRICE IS REASONABLE PROFIT MARGIN IN THE LINE OF IMFL BUSINESS 3 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) AND DIRECTED THE A.O. T O RE - COMPUTE THE PROFIT OF THE ASSESSEE. THE RELEVANT PORTION OF THE ORDER IS EXTRACTED AS UNDER: 8. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE A.O. ESTIMATED NET PRO FIT OF 20% ON STOCK PUT FOR SALE. THE A.O. WAS OF THE OPINION THAT THE ASSESSEE HAS NOT MAINTAINED PROPER BOOKS OF ACCOUNTS AND VOUCHERS IN SUPPORT OF PURCHASES AND SALES. THE A.O. FURTHER OBSERVED THAT THE ASSESSEE HAS FAILED TO MAINTAIN STOCK REGISTERS AND BOOKS OF ACCOUNTS MAINTAINED BY THE ASSESSEE ARE NOT SUSCEPTIBLE FOR VERIFICATION, THEREFORE REJECTED THE BOOKS OF ACCOUNTS AND ESTIMATED NET PROFIT OF 20% BY RELYING UPON THE DECISION OF HONBLE A.P. HIGH COURT. IT IS THE CONTENTION OF THE ASSESSEE THAT THE NET PROFIT ESTIMATED BY THE A.O. IS QUITE HIGH WHEN COMPARED TO THE NATURE OF BUSINESS CARRIED ON BY THE ASSESSEE. IT IS FURTHER SUBMITTED THAT THE CASE LAW RELIED UPON BY THE ASSESSEE IS NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE. THE CASE BEFORE THE HONBLE A.P. HIGH COURT WAS THAT THE ASSESSEE IS INTO THE BUSINESS OF TRADING IN ARRACK, WHEREAS IT IS IN THE BUSINESS OF DEALING IN IMFL. THE ASSESSEE FURTHER CONTENDED THAT IMFL TRADE WAS CONTROLLED BY THE STATE GOVERNMENT THROUGH A.P. STAT E BEVERAGES CORPORATION LTD. AND THE PRICES OF THE PRODUCTS ARE FIXED BY THE STATE GOVERNMENT. THE ASSESSEE BEING A LICENSE HOLDER OF STATE GOVERNMENT CANNOT SELL THE PRODUCTS OVER AND ABOVE THE MRP FIXED BY THE STATE GOVERNMENT. WE FIND FORCE IN THE ARG UMENTS OF THE ASSESSEE FOR THE REASON THAT THE A.O. HAS ESTIMATED THE NET PROFIT BY RELYING UPON THE DECISION OF A.P. HIGH COURT IN THE CASE OF CIT VS. R. NARAYANA RAO IN ITA NO.3 OF 2003 WHICH IS RENDERED UNDER DIFFERENT FACTS. THE A.P. HIGH COURT HAS CO NSIDERED THE CASE OF AN ARRACK DEALER, WHEREAS, THE ASSESSEE IS INTO THE BUSINESS OF DEALING IN IMFL. THEREFORE, WE ARE OF THE VIEW THAT THE A.O. WAS NOT JUSTIFIED IN RELYING UPON THE JUDGEMENT, WHICH WAS RENDERED UNDER DIFFERENT FACTS TO ESTIMATE THE NET PROFIT. ON THE OTHER HAND, THE LD. A.R. FOR THE ASSESSEE, RELIED UPON THE DECISION OF ITAT, VISAKHAPATNAM BENCH IN THE CASE OF T. APPALASWAMY VS. ACIT IN ITA NO.65 & 66/VIZAG/2012. WE HAVE GONE THROUGH THE CASE LAWS RELIED UPON BY THE ASSESSEE IN THE LI GHT OF THE FACTS OF THE PRESENT CASE AND FINDS THAT THE COORDINATE BENCH OF THIS TRIBUNAL, UNDER SIMILAR CIRCUMSTANCES HELD THAT ESTIMATION OF 5% NET PROFIT ON PURCHASES IS REASONABLE. THE RELEVANT PORTION OF THE ORDER IS REPRODUCED HEREUNDER: 3. WE HAVE HEARD THE PARTIES, PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS OTHER MATERIALS ON RECORD. IT IS THE CONTENTION OF THE LD. A.R. THAT THE ESTIMATION OF PROFIT AT 16% IS HIGH 4 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) AND EXCESSIVE CONSIDERING THE NORMAL RATE OF PROFIT IN THIS LINE OF B USINESS. WHEREAS, THE LD. D.R. SUPPORTED THE ORDER OF THE CIT(A). HAVING CONSIDERED THE SUBMISSIONS OF THE ASSESSEE, WE ARE OF THE VIEW THAT THE ISSUE IS NO MORE RES INTEGRA IN VIEW OF A SERIES OF DECISIONS OF THE ITAT HYDERABAD BENCH IN SIMILAR CASES. THE COORDINATE BENCH IN CASE OF ITA NO.127/HYD/12 AND OTHERS DATED 18.05.2012 AS WELL AS A NUMBER OF OTHER CASES HAVE HELD THAT PROFIT IN CASE OF BUSINESS IN INDIAN MADE FOREIGN LIQUOR HAS TO BE ESTIMATED AT 5% OF THE PURCHASES MADE BY THE ASSESSEE. THERE FORE, FOLLOWING THE DECISION OF THE ITAT HYDERABAD BENCH, WE SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE ASSESSING OFFICER TO ESTIMATE THE PROFIT FROM THE WINE BUSINESS OF THE ASSESSEE BY APPLYING THE RATE OF 5% OF THE PURCHASES MADE NET OF ALL OTHER DEDUCTIONS. THE ASSESSING OFFICER SHOULD ALSO BEAR IN MIND THAT IN NO CASE THE INCOME DETERMINED SHOULD BE BELOW THE INCOME RETURNED. 9. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THIS CASE AND ALSO RESPECTFULLY FOLLOWING THE RATIOS OF COORDINATE BENCH, WE ARE OF THE VIEW THAT THE NET PROFIT ESTIMATED BY THE A.O. BY RELYING UPON THE DECISION OF HONBLE A.P. HIGH COURT (SUPRA), WHICH WAS RENDERED UNDER DIFFERENT FACTS IS QUITE HIGH. ON THE OTHER HAND, THE ASSESSEE RELIED UPON THE DECISION OF COORDINATE BE NCH AND THE COORDINATE BENCH UNDER SIMILAR CIRCUMSTANCES ESTIMATED THE NET PROFIT OF 5% ON TOTAL PURCHASES NET OF ALL DEDUCTIONS. NO CONTRARY DECISION IS PLACED ON RECORD BY THE REVENUE TO TAKE ANY OTHER VIEW OF THE MATTER THAN THE VIEW SO TAKEN BY THE CO ORDINATE BENCH. THEREFORE, WE DIRECT THE A.O. TO ESTIMATE THE NET PROFIT OF 5% ON TOTAL PURCHASES NE T OF ALL DEDUCTIONS. ORDERED ACCORDINGLY. 8 . RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH OF TH IS TRIBUNAL, WE DIRECT THE A.O. TO RE - COMPUTE THE INCOME OF THE ASSESSEE AT 5% OF PURCHASE PRICE. ACCORDINGLY, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED. 9 . GROUND NO.4 RELATING TO ADDITION OF 27,60,000/ - IN RESPECT OF UNEXPLAINED CASH CREDITS. 5 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) 10 IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE HAS CLAIMED UNSECURED LOANS TO THE TUNE OF 27,60,000/ - . THE ASSESSING OFFICER CALLED UPON THE ASSESSEE TO PROVE THE LOANS WITH NAMES AND OTHER PARTICULARS. THE ASSESSEE HAS NOT FIL ED ANY INFORMATION BEFORE THE ASSESSING OFFICER. THEREFORE, THE ASSESSING OFFICER HAS CONSIDERED THE ENTIRE AMOUNT OF 27,60,000/ - AS UNPROVED CASH CREDITS AND THE SAME IS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 11 ON APPEAL BEFORE THE LD. CIT(A), IT WAS SUBMITTED THAT THE IMPUGNED ADDITION OF 27,60,000/ - WAS ALREADY OFFERED TO TAX AND ADJUSTED AGAINST THE NET LOSS IN THE CAPITAL ACCOUNT. IT WAS ALSO SUBMITTED THAT BOOKS OF ACCOUNT WERE ALREADY REJECTED AND INCOME IS ESTIMATED, NO SEPARATE ADDITION CAN BE MADE AND REQUESTED TO DELETE THE IMPUGNED ADDITION. THE LD. CIT(A) AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE, HE CONFIRMED THE ORDER OF THE ASSESSING OFFICER BY OBSERVING AS UNDER: - 5.3 I HAVE CONSIDERED THE SUBMISSION AND ALSO PERUSED THE ASSESSMENT RECORDS. FROM THE COPY OF THE CAPITAL ACCOUNT FILED IT IS SEEN THAT THE ASSESSEE HAS CREDITED CAS E OF RS.27,60,000/ - . THE PERUSAL OF PROFIT AND LOSS ACCOUNT SHOWED NET LOSS OF RS.19,94,360/ - . IN THE PROFIT AND LOSS ADJUSTMENT ACCOUNT THE NET LO SS OF RS. 19,94,360/ - WAS ADJUSTED AGAINST 'UNSECURED LOANS OFFERED TO TAX FOR WANT OF STRICT PROOF' OF RS.27,60,000/ - , AND THE INCOME FROM BUSINESS WAS ARRIVED AT RS.7,65,639/ - . IT IS ALSO NOTED THAT THE ASSESSEE HAD FILED LETTER DATED 08.11.2013 BEFORE T HE AO, STATING, 'I HAD OFFERED UNSECURED LOAN OF RS.26,70,000/ - IN THE PROFIT AND LOSS ADJUSTMENT ACCOUNT AS I CANNOT PROVE THEM'. THE DETAILS OF THE IMPUGNED CREDITS WERE SAID TO BE AS FOLLOWS: 15.05.2010 - RS . 5,00,000/ - 21.05.2010 - RS. 6,00,000/ - 11.06.2010 - RS.5,00,000/ - 6 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) 17.06.2010 - RS.6,00, 000/ - 19.06.2010 - RS.5,00,000/ - 05.07.2010 - RS. 60,000/ - THESE FACTUAL DETAILS DEARLY SHOW THAT THE IMPUGNED CREDITS SHOWN AS UNSECURED LOANS AND OFFERED TO TAX HAVE NO NEXUS TO THE INCOME FROM LIQUOR BUSINESS. THEREFORE, THE PLEA THAT THE IMPUGNED CREDITS OFFERED TO TAX IS PART OF INCOME ESTIMATED IS WITHOUT MERITS. THE IMPUGNED CREDITS IN THE CAPITAL ACCOUNT HAVE NO NEXUS TO THE L IQUOR BUSINESS WHOSE INCOME HAS BEEN ESTIMATED. 5.4 IN THIS REGARD, IT IS RELEVANT TO REFER TO THE DECISION OF THE HONOURABLE ALLAHABAD HIGH CO URT IN THE CASE OF CIT V G. S . T I WARI & CO 3561TR 651 WHEREIN THE HONOURABLE ALLAHABAD HIGH COURT HELD THAT WHERE CERTAIN UNEXPLAINED SUNDRY CREDITORS ARE FOUND IN THE ACCOUNT BOOKS OF THE ASSESSEE, WHOSE BUSINESS INCOME IS DETERMINED ON ESTIMATE BASIS AND NOT ON THE BASIS OF HIS RETURNED INCOME , THE AO IS NOT PREVENTED FROM TREATING THE UNEXPLAINED SUNDRY CREDITORS STANDING IN THE BOOKS ACCOUNT AS INCOME FROM UNDISCLOSED SOURCES. THE H ONOURABL E ALLAHABAD HIGH C OURT FOLLOWED THE DECISION OF THE JURISDICTIONAL AP HIGH COURT IN THE CASE OF CIT V. M ADURI RAJAIAHGARI KISTAIAH(120 ITR 294) WHEREIN IT WAS HELD THAT WHERE CERTAIN UNEXPLAINED SUNDRY CREDITORS ARE FOUND IN THE ACCOUNT BOOKS OF THE ASSESSEE, WHOSE BUSINESS INCOME IS DETERMINED ON ESTIMATE BASIS AND NOT ON THE BASIS OF HIS RETURNED INCOME, T HE AO IS NOT PREVENTED FROM TREATING THE UNEXPLAINED SUNDRY CREDITORS STANDING IN THE BOOKS OF ACCOUNT AS INCOME FROM UNDISCLOSED SOURCES. THE ALLAHABAD HIGH COURT ALSO RELIED ON THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF CTT VS. DEVI PRASAD VIS HWANATH PRASAD; 72 ITR 194 WHEREIN IT WAS OBSERVED THAT WHERE THERE IS AN UNEXPLAINED CREDIT, IT IS OPEN TO THE AO TO HOLD THAT IT IS INCOME OF THE ASSESSEE, AND NO FURTHER BURDEN LIES ON THE AO TO SHOW THAT THE INCOME IS FROM ANY PARTICULAR SOURCE. IT IS FOR THE ASSESSEE TO PROVE THAT, EVEN IF THE SUNDRY CREDITORS REPRESENT INCOME, IT IS INCOME FROM A SOURCE WHICH HAS ALREADY BEEN TAXED. THERE IS NOTHING IN LAW WHICH PREVENTS THE AO IN AN APPROPRIATE CASE IN TAXING THE SUNDRY CREDIT, THE SOURCE AND NATURE OF - WHICH IS NOT SATISFACTORILY EXPLAINED, AND THE BUSINESS INCOME ESTIMATED BY HIM AFTER REJECTING THE BOOKS OF ACCOUNT OF THE ASSESSEE AS UNRELIABLE. 5.5 IN THIS REGARD, IT IS ALSO RELEVANT TO NOTE THAT A SIMILAR ISSUE AS TO WHETHER ADDITION U/S.68 OR 69 COULD BE MADE WHEN THE AO HAS ESTIMATED THE INCOME WAS DEALT BY THE HON'BLE ITAT, HYDERABAD IN THE, CASE OF SMT. SHOBA GUPTA(UA NO.461/HYD/2013, DT. 10.7.2013), WHEREIN IT WAS HELD THAT EVEN IF THE INCOME IS ESTIMATED, THE AO MAY INVOKE THE PROVISIONS OF SEC.68/69 OF THE ACT. THE HON'BLE TRIBUNAL FOLLOWED ITS OWN DECISION IN THE CASE OF P.V.SITARAMASWAMY NAIDU IN 1TA NO.26/HYD/12 VIDE ORDER DT.9.1.2013. THE HON'BLE TRIBUNAL TOOK THE VIEW THAT UNLESS, THE ASSESSEE, BY INDEPENDENT AND SATISFACTORY EVIDENCE, ESTABLISHES THAT THESE AMOUNTS RELATE OR REFERABLE TO THE UNDISCLOSED INCOME FROM KNOWN OR DISCLOSED SOURCES, I.E. THE BUSINESS, WHOSE INCOME HAD ALREADY BEEN ESTIMATED, THE ITO IS ENTITLED TO TREAT UNEXPLAINED CASH CREDIT AS INCOME FROM UNDISCLOSED 7 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) SOURCE S. THE HON'BLE TRIBUNAL PLACED RELIANCE ON THE JUDGMENT OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. MADURI RAJAIAHGARI KISTAIAH(120 UR 294) AND OF THE APEX COURT IN THE CASE OF DEVI PRASAD VISWANATH PRASAD 72 UR 194. THE HON'BLE TRIBUNAL ALSO REFERR ED TO THE OBSERVATION OF SUPREME COURT IN THE CASE OF KALE KHAN MOHAMMED HANIF VS. C IT (50 ITR 1 SC), 'IT CANNOT BE SAID THAT THE TAX AUTHORITIES WERE PRECLUDED FROM TREATING THE AMOUNTS OF THE CREDIT ENTRIES AS INCOME FROM UNDISCLOSED SOURCES SIMPLY BECAU SE THE ENTRIES APPEAR IN THE BOOKS OF A BUSINESS HOSE INCOME THEY HAD PREVIOUSLY COMPUTED ON A PERCENTAGE BASIS' WHILE RENDERING THE ABOVE DECISION. IN THE ASSESSEE'S CASE THE IMPUGNED CREDITS OFFERED AX CANNOT BE CONSIDERED AS REFERABLE TO THE LIQUOR BUSI NESS WHOSE INCOME HAS BEEN ESTIMATED. THEREFORE, THE CONTENTIONS RAISED IN THIS REGARD ARE REJECTED. ACCORDINGLY, THE IMPUGNED ADDITION N OF RS.27,60,000/ - IS UPHELD. 12 ON BEING AGGRIEVED , ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. 13 LEARNED COUNSEL FOR THE ASSESSEE HAS REITERATED THE SUBMISSIONS WHICH WERE MADE BEFORE THE AUTHORITIES BELOW , WHEREAS L EARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 14 WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL A VAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW . 15 THE ASSESSEE HAS CLAIMED UNSECURED LOAN S TO THE TUNE OF 27,60,000/ - . WHEN THE ASSESSING OFFICER ASKED THE ASSESSEE TO PRODUCE THE DETAILS , N O DETAILS WERE FILED . IT IS ONLY SUBMITTED BEFORE THE LD. CIT(A) THAT AN AMOUNT OF 27,60,000/ - WAS ALRE A DY OFFERED TO TAX AND ADJUSTED AGAINST NET LOSS IN THE CAPITAL ACCOUNT . EVEN BEFORE US, THE ASSESSEE HAS NOT FILED ANY DETAILS. THE ARGUMENT ADVANCED BEFORE THE LD. CIT(A ) THAT THE AMOUNT OF 27,60,000/ - WAS ALREADY 8 ITA NO. 197 / VIZ /201 6 (T. RATNAGIRI KONDA) OFFERED FOR TAXATION HAS BEEN CONSIDERED BY THE LD. CIT(A) AND HE HAS OBSERVED THAT THE IMPUGNED CREDIT S AS UNSECURED LOANS , OFFERED TO TAX HAS NO NEXUS TO THE INCOME FROM LIQUOR BUSINESS, AND THEREFORE THE IM PUGNED CREDITS OFFERED TO TAX IS PART OF INCOME, ESTIMATED WITHOUT MERITS. LD. CIT(A) REJECTED THE ARGUMENTS RAISED BY THE ASSESSEE AND CONFIRMED THE ADDITION. WE FIND THAT EVEN BEFORE US THE ASSESSEE IS NOT ABLE TO ESTABLISH THAT THE NEXUS BETWEEN UNSEC URED LOANS AND THE LIQUOR BUSINESS AND THEREFORE, WE ARE OF THE OPINION THAT THE LD. CIT(A) HAS RIGHTLY CONFIRMED THE ORDER PASSED BY THE ASSESSING OFFICER. ACCORDINGLY, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMISSED. 1 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 3 0 T H DAY OF AUGUST , 201 7 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 3 0 T H AUGUST , 201 7 . VR/ - COPY TO: 1. THE ASSESSEE - TIRUMAL RATNAGIRI KONDA, PLOT NO.20, BANKERS COLONY, BEHIND DEEPA MAHAL, SRIKAKULAM. . 2. THE REVENUE - ITO, WARD - 1 , SRIKAKULAM. 3. THE CIT - 2, VISAKHAPATNAM. 4. THE CIT(A) , RAJAHMUNDRY . 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY I.T.A.T., VISAKHAPATNAM