Sandireddy Ananda Rao, Hyderabad V. The ITO, Ward - 1, Ongole

CO 95/HYD/2010

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 5947 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 21-04-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-02-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 04-11-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C P RAMASWAMY
• Assessee Lawyers: AMLAN TRIPATHY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.1131/HYD/2010 : ASSESSMENT YEAR 2002- 03 ITA NO.1132/HYD/2010 : ASSESSMENT YEAR 2003- 04 INCOME - TAX OFFICER, WARD - 1, ONGOLE. VS SHRI SAMI REDDY ANANDA RAO, ONGOLE. (PAN ATTPS 8530 K) (APPELLANT) (RESPONDENT) AND C.O. NO.94/HYD/2010 (IN ITA NO.1131/HYD/2010) : ASSESSMENT YE AR 2002-03 C.O. NO.95/HYD/2010 (IN ITA NO.1132/HYD/2010) : ASSESSMENT YEAR 2 003-04 SHRI SAMI REDDY ANANDA RAO, ONGOLE. (PAN ATTPS 8530 K) VS INCOME - TAX OFFICER, WARD - 1, ONGOLE. ( CROSS - OBJECTOR) ( APPELLANT - IN - APPEAL) ASSESSEE BY : SHRI AMLAN TRIPATHY RESPONDENT BY : SHRI C.P.RAMASWAMY O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THESE TWO APPEALS BY THE REVENUE AND THE CROSS- OBJECTIONS THEREIN BY THE ASSESSEE ARE DIRECTED AGA INST THE SIMILAR BUT SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX(A PPEALS) GUNTUR BOTH DATED 28.5.2010 FOR THE ASSESSMENT YEAR 2002-0 3 AND 2003-04. ITA NO.1131-1132/H/2010 & COS THEREIN SHRI SAMI REDDY ANANDA RAO, ONGOLE. 2 SINCE COMMON ISSUES ARE INVOLVED, THESE MATTERS ARE BEING DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENC E. REVENUES APPEALS ITA NO.1131-1132/HYD/2010 2. GROUNDS OF THE REVENUE, COMMON IN BOTH THESE A PPEALS, READ AS FOLLOWS- 1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH IN LA W AND IN FACTS OF THE CASE. 2. THE LEARNED. CIT(A) WHILE PASSING THE ORDER UNDE R APPEAL HAS NOT CONSIDERED THE DECISION OF THE I.T.A .T., B BENCH, HYDERABAD FOR THE ASSESSMENT YEAR 2004-0 5 AND 2005-06 IN THE CASE OF THE SAME ASSESSEE VIDE ORDER IN ITA NO.688 AND 689/HYD/2008, DT. 21.11.200 8 THAT NET PROFIT @ 2% SHOULD BE ARRIVED AFTER CLUBBI NG ALL THE INCOMES OF THE ASSESSEE . 3. THE CIT(A) OUGHT TO HAVE APPRECIATED THE CONSEQU ENTIAL ORDER PASSED BY THE ASSESSING OFFICER BY CLUBBING A LL THE GROSS RECEIPTS INCLUDING CASH CREDITS INTRODUCED IN THE CAPITAL ACCOUNT OF THE ASSESSEE IN OBEDIENCE TO THE DECISION OF THE HONBLE ITAT, HYDERABAD STATED SUPR A. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASS ESSEE SUBMITTED THAT AS EVIDENT FROM THE GROUNDS OF APPEA L OF THE REVENUE ITSELF, THE ISSUE OF ESTIMATION OF THE NET PROFIT O F THE ASSESSEE HAS BEEN COVERED BY THE DECISION OF THE TRIBUNAL IN ASS ESSEES OWN CASE FOR THE ASSESSMENT YEARS 2004-05 AND 2005-06, AND V IDE ORDER DATED 21.11.2008 IN ITA NO.S 688 AND 689/HYD/2008 FOR THO SE YEARS, THE TRIBUNAL HAS DIRECTED THE ASSESSING OFFICER TO ESTI MATE THE NET PROFIT AT 2% OF THE GROSS RECEIPTS AFTER CLUBBING ALL THE INCOMES OF THE ASSESSEE. HE SUBMITTED THAT THE IN THE IMPUGNED O RDERS, THE CIT(A) HAS MERELY FOLLOWED THE DIRECTIONS OF THE TRIBUNAL CONTAINED IN THAT ORDER FOR THE SUCCEEDING YEARS AND AS SUCH THERE IS NO INFIRMITY IN THE ORDERS OF THE CIT(A). THE LEARNED DEPARTMENTAL REP RESENTATIVE ON ITA NO.1131-1132/H/2010 & COS THEREIN SHRI SAMI REDDY ANANDA RAO, ONGOLE. 3 THE OTHER HAND, OPPOSED THE ABOVE SUBMISSIONS OF TH E LEARNED COUNSEL FOR THE ASSESSEE AND RELIED ON THE ORDERS O F ASSESSMENT . 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE ORDERS OF THE LOWER AUTHORITIES AND OTHER MATER IAL ON RECORD. WE FIND THAT THE ISSUE OF ESTIMATION OF THE NET PROFIT OF THE ASSESSEE FROM THE BUSINESS OF OPERATING BUSES, IS COVERED BY THE DECISION OF THE TRIBUNAL FOR THE ASSESSMENT YEARS 2003-04 AND 2004- 05 CITED SUPRA, AND IN THE IMPUGNED ORDERS, THE CIT(A) HAS MERELY F OLLOWED THE DIRECTIONS OF THE TRIBUNAL CONTAINED IN PARA-7 OF T HE ORDER DATED 21.11.2008 FOR THOSE YEARS. WE FIND NO INFIRMITY I N THE IMPUGNED ORDERS OF THE CIT(A) IN THAT BEHALF. WE ACCORDINGL Y UPHOLD THE SAME AND REJECT THE GROUNDS OF THE REVENUE IN THESE APPE ALS. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. CROSS OBJECTIONS OF THE ASSESSEE: 6. THE COMMON GROUNDS RAISED BY THE ASSESSEE IN HI S CROSS- OBJECTIONS MERELY SUPPORT THE ORDERS OF THE CIT(A), IN THE CONTEXT OF THE GROUNDS OF THE REVENUE IN ITS APPEALS. INASMUC H AS WE HAVE REJECTED THOSE GROUNDS OF THE REVENUE AND DISMISSED ITS APPEALS, THE CROSS-OBJECTIONS OF THE ASSESSEE HAVE BECOME INFRUC TUOUS. AS SUCH THEY ARE DISMISSED. 7. IN THE RESULT, CROSS-OBJECTIONS OF THE ASSESSE E, BEING INFRUCTUOUS, ARE DISMISSED. ITA NO.1131-1132/H/2010 & COS THEREIN SHRI SAMI REDDY ANANDA RAO, ONGOLE. 4 8. IN THE RESULT, APPEALS OF THE REVENUE AS WELL AS THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED AT THE CONCLUSION OF HEARING ON THE APPEAL ON 21.4.2011 SD/- SD/- ( G.C. G UPTA) (CHANDRA POOJARI) V ICE PRESIDENT A CCOUNTANT MEMBER DATED THE 21ST APRIL,, 2011 COPY FORWARDED TO: 1. SHRI SAMI REDDY ANANDA RAO, D.NO.4-347, SATYANARAYA NA PURAM, ONGOLE. 2. INCO M E - TAX OFFICER, WRD - 1, ONGOLE. 3. COMMISSIONER OF INCOME - TAX(APPEALS) , GUNTUR 4. COMMISSIONER OF INCOME - TAX , GUNTUR 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.