Kornu Satyam, Srikakulam V. THE ITO, Srikakulam

ITA 109/VIZ/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8961 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 09-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M K SETHI

Judgement Text

ITA NO.109/VIZAG/2016 KORNU SATYAM, SRIKAKULAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM , BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ./I.T.A.NO.109/VIZAG/2016 ( / ASSESSMENT YEAR: 2011-12) KORNU SATYAM, SRIKAKULAM VS. ITO, WARD - 2 , SRIKAKULAM [PAN: BQDPK8154P ] ( / APPELLANT) ( ! / RESPONDENT) / APPELLANT BY : SHRI C . SUBRAHMANYAM, AR / RESPONDENT BY : SHRI M.K. SETHI, DR / DATE OF HEARING : 03.05.2017 / DATE OF PRONOUNCEMENT : 05.05.2017 / O R D E R PER D. MANMOHAN, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY CIT(A)-2, VISAKHAPATNAM AND IT PERTAINS TO THE A SSESSMENT YEAR 2011-12. 2. ESTIMATE OF PROFIT IN IMFL BUSINESS IS THE SUBJE CT MATTER OF DISPUTE BEFORE THE TRIBUNAL. BOTH THE PARTIES AGREED, AT T HE TIME OF HEARING, THAT UNDER IDENTICAL CIRCUMSTANCES, THE ITAT, VISAK HAPATNAM BENCH HAS ITA NO.109/VIZAG/2016 KORNU SATYAM, SRIKAKULAM 2 CONSISTENTLY TAKEN A VIEW THAT ESTIMATE OF NET PROF IT AT 5% OF PURCHASES, CLEAR OF ALL DEDUCTIONS, WOULD MEET THE ENDS OF JUS TICE IN THE PECULIAR FACTS AND CIRCUMSTANCES PREVAILING IN THAT YEAR, IN RESPECT OF SRIKAKULAM ZONE. CONSISTENT TO THE VIEW TAKEN THEREIN, I DIRE CT THE A.O. TO ESTIMATE THE NET PROFIT AT 5% OF PURCHASES, CLEAR OF ALL DED UCTIONS. THIS DISPOSES OF GROUND NOS.1.0 TO 1.2. VIDE GROUND NOS.1.3 TO 1 .6, THE ASSESSEE CONTENDS THAT THE CIT(A) ERRED IN CONFIRMING THE AD DITION OF ` 3 LAKHS REFERABLE TO UNSECURED LOANS AND FURTHER CONTENDED THAT THE LD. CIT(A) OUGHT TO HAVE CONSIDERED TELESCOPING OF THE SUBJECT ADDITION FROM OUT OF THE ESTIMATED INCOME. AT THE TIME OF HEARING, THE LD. COUNSEL DID NOT ADVERT THE ATTENTION OF THE BENCH TO ANY MATERIAL B Y WHICH HE COULD CONTRADICT THE FINDINGS OF THE CIT(A). HAVING REGA RD TO CIRCUMSTANCES OF THE CASE, I AFFIRM THE ORDER OF THE LD. CIT(A) AND REJECT GROUND NOS.1.3 TO 1.6. 2. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 5 TH MAY17. SD/- ( ) (D. MANMOHAN) /VICE PRESIDENT ! /VISAKHAPATNAM: % /DATED : 05.05.2017 VG/SPS ITA NO.109/VIZAG/2016 KORNU SATYAM, SRIKAKULAM 3 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT KORNU SATYAM, PROP. SRINIVASA WI NES, H.NO.6-12-8/14, 1 ST LANE, P.N. COLONY, SRIKAKULAM 2. / THE RESPONDENT THE ITO, WARD-2, SRIKAKULAM 3. ) / THE CIT-2, VISAKHAPATNAM 4. ) ( ) / THE CIT(A)-2, VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM