ITO, Ongole V. Sri Vemuri Subba Rao, Ongole

ITA 1129/HYD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59114 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 21-12-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 25-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PHANI KISHORE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER I.T.A. NO. 1129/HYD/2010 (ASSESSMENT YEAR : 2002-03) I.T.A. NO. 1130/HYD/2010 (ASSESSMENT YEAR : 2003-04) INCOME TAX OFFICER WARD-1 ONGOLE VS. SHRI VEMURI SUBBA RAO ONGOLE PAN: ADFPV6402K APPELLANT RESPONDENT APPELLANT BY: SHRI PHANI KISHORE RESPONDENT BY: SHRI K.C. DEVDAS DATE OF HEARING: 12 . 0 1.201 2 DATE OF PRONOUNCEMENT: 12.01.2012 O R D E R PER CHANDRA POOJARI, AM: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAI NST THE ORDER OF THE CIT(A), GUNTUR, DATED 28.05.2010 FOR T HE ASSESSMENT YEARS 2002-03 AND 2003-04. SINCE THE IS SUE IN THESE APPEALS IS COMMON IN NATURE BOTH THESE APPEAL S ARE CLUBBED TOGETHER, HEARD TOGETHER AND ARE BEING DISP OSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE COMMON GROUND IN BOTH THESE APPEALS IS AS FOLLO WS: 2. THE LD. CIT(A) WHILE PASSING THE ORDER UNDER APPEAL HAS NOT CONSIDERED THE DECISION OF THE ITAT 'B' BENCH, HYDERABAD FOR THE A.YS. 2004-05 AND 2005- 06 IN THE CASE OF THE SAME ASSESSEE VIDE ORDER IN I TA NO. 688 AND 689/HYD/2008, DT. 21.11.2008 THAT NET PROFIT @ 2% SHOULD BE ARRIVED AFTER CLUBBING ALL TH E INCOME OF THE ASSESSEE. I.T.A. NOS. 1129 & 1130/HYD/2010 SHRI VEMURI SUBBA RAO ========================== 2 3. AFTER HEARING BOTH THE PARTIES, WE FIND SIMILAR ISS UE CAME UP FOR CONSIDERATION BEFORE THIS TRIBUNAL IN THE CA SE OF METTAM PENCHALA NAIDU, SANDIREDDY ANANDARAO AND VEMURI SUB BARAO IN ITA NOS. 682 TO 689/HYD/2008. THE TRIBUNAL VIDE ITS COMMON ORDER DATED 21.11.2008, INTER ALIA, HELD THA T THE INCOME OF THE ASSESSEE IS TO BE ESTIMATED AT 2% OF THE GROSS RECEIPTS AS NET PROFIT. WHILE DOING SO, THE ASSESS ING OFFICER SHOULD INCLUDE SEPARATE ADDITION DELETED U/S. 68 OF THE INCOME- TAX ACT, 1961 FOR COMPUTING THE GROSS RECEIPT. THE REAFTER, THE ASSESSING OFFICER IS REQUIRED TO ESTIMATE THE INCOM E AT 2% OF THE GROSS RECEIPT BY CLUBBING ALL THE INCOME OF THE ASS ESSEE. IF HE DOES SO, SUCH ORDER WOULD BE IN CONFORMITY WITH THE TRIBUNAL ORDER CITED SUPRA. IN THE PRESENT CASE, THE CIT(A) OBSERVED THAT THE CREDIT IN THE CAPITAL ACCOUNT SHOULD FORM PART OF GROSS COLLECTION IN LINE WITH THE TRIBUNAL ORDER FOR EARL IER ASSESSMENT YEAR AND THE ASSESSING OFFICER SHALL NOT BRING THE ENTIRE AMOUNT CREDITED IN THE CAPITAL ACCOUNT TOWARDS INCOME. ON LY HE HAS TO CONSIDER 2% OF GROSS RECEIPT INCLUDING THE CREDIT I N CAPITAL ACCOUNT AS INCOME OF THE ASSESSEE. IN THESE FINDIN GS OF THE CIT(A), WE DO NOT FIND ANY INFIRMITY AND THE SAME I S CONFIRMED. 4. IN THE RESULT, BOTH THE APPEALS FILED BY THE REVENU E ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH JANUARY, 2012. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 12 TH JANUARY, 2012 I.T.A. NOS. 1129 & 1130/HYD/2010 SHRI VEMURI SUBBA RAO ========================== 3 COPY FORWARDED TO: 1. THE INCOME TAX OFFICER, WARD - 1, ONGOLE, AP. 2. SHRI VEMURI SUBBA RAO, S/O. SUBBARAO, D. NO. 4 - 375, VENKATESWARA NAGAR, ONGLOE-523 002. 3. COMMISSIONER OF INCOME - TAX (APPEALS), GUNTUR. 4. THE COMMISSIONER OF INCOME - TAX, GUNTUR CHARGE, GUNTUR. 5 . THE DR B BENCH, ITAT, HYDERABAD TPRAO