ITO, Ward 8(2), Hyderabad V. Ganesh Wines, Hyderabad

CO 148/HYD/2012

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 8126 (ITAT-HYDERABAD)
• Duration Of Justice: 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-12-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 23-11-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIDISHA KALRA
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NOS.1357 & 1358/HYD/2012 ASSTT. YEARS: 2007-08 & 2008-09 ITO, WARD-8(2), M/S.GANESH WINES, HYDERABAD. VS- R.R. DISTRICT. PAN: AAGFG3188F (APPELLANT) (RESPONDENT) C.O. NOS.147 & 148/HYD/2012 (IN ITA NOS.1357 & 1358/HYD/2012) ASSTT. YEARS 2007-08 & 2008-09 M/S.GANESH WINES, -VS- ITO, WARD-8(2), R.R. DISTRICT. HYDERABAD PAN: AAGFG 3188F (APPELLANT) (RESPONDENT) DEPARTMENT BY : SMT. VIDISHA KALRA (DR) ASSESSEE BY : SHRI S. RAMA RAO DATE OF HEARING : 05-12-2012 DATE OF PRONOUNCEMENT : 05-1 2-2012 ORDER PER BENCH: THE ABOVE APPEALS BY THE REVENUE AND THE CROSS O BJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST SEPARATE ORDER S OF CIT (A)-III, HYDERABAD PERTAINING TO THE ASSESSMENT YEARS 2007-0 8 AND 2008-09. SINCE THE ISSUE INVOLVED IN THESE APPEALS AND CROSS OBJECTIONS IS COMMON IN NATURE, THEY ARE CLUBBED TOGETHER, HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMBINED ORDER, FOR THE S AKE OF CONVENIENCE. 2 ITA NOS. 1357 &1358 OF 2012 & COS GANESH WINES, RR DISTRICT. 2. BOTH THE ASSESSEE AND THE DEPARTMENT HAVE DISPUT ED DIRECTION OF THE CIT (A) TO ESTIMATE INCOME OF ASSESSES AT 3% AS AGAINST 27% OF THE STOCK PUT TO SALE BY THE AO. THE ASSESSEE IN ITS C.OS HAS FURTHE R CLAIMED ALLOWABILITY OF REMUNERATION AND INTEREST PAID TO PARTNERS. IT IS NEEDLESS TO SAY THAT THERE IS NO DISPUTE REGARDING THE SALES FIGURE DETERMINED BY TH E ASSESSING OFFICER AND THE SALES TO BE CONSIDERED AS SAME FIGURE. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. IN OUR OPINION, SIMILAR ISSUE CAME FOR CONSIDERATION B EFORE THIS TRIBUNAL IN THE CASE OF ITO VS. M/S PITTALA YAKAIAH, NALGONDA & ORS., IN ITA NO.2191/HYD/2011 AND OTHERS, ORDER DATED 13 TH APRIL, 2012, WHEREIN THE TRIBUNAL HELD THAT INCOME OF THE ASSESSES IN THIS LINE OF BUSINESS HAS TO BE EST IMATED AT 5% OF SALES MADE BY THE ASSESSES. ACCORDINGLY, WE DIRECT THE AO TO ESTIM ATE THE INCOME AT 5% OF SALES MADE BY THE ASSESSEES NET OF ALL DEDUCTIONS A S INCOME FOR THIS ASSESSEE ALSO. THE CLAIM OF THE ASSESSEE FOR FURTHER DEDUCTI ON TOWARDS REMUNERATION AND INTEREST TO PARTNERS CANNOT BE ACCEPTED. 4. IN THE RESULT, WHILE THE APPEALS FILED BY THE RE VENUE ARE PARTLY ALLOWED, THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 05-12-2012. SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (SAKTIJIT DEY) JUDICIAL MEMBER HYDERABAD, DATED THE 5 TH DECEMBER, 2012. COPY TO:- 1) ITO, WARD-8(2),HYDERABAD. 2) M/S. GANESH WINES, NATIONAL HIGH WAY-7, SHAMSH ABAD, RR DISTRICT. (3) CIT (A)-III, HYDERABAD. 4. THE CIT CONCERNED, HYDERABAD 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABA D. JMR* 3 ITA NOS. 1357 &1358 OF 2012 & COS GANESH WINES, RR DISTRICT.