Sai's White House Bar & Restaurant, Secunderabad V. Income Tax Officer, Ward-10(4), Hyderabad

ITA 1323/Hyd/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6861 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 05-11-2019
• Assessment Year: 2005-2006
• Appeal Filed On: 28-07-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1323/HYD/2017 ASSESSMENT YEAR: 2005 - 06 SAIS WHITE HOUSE BAR AND RESTAURANT, 11 - 1 - 6254/1, MYLARGADDA, SEETHAPHALMANDI, SECUNDERABAD 500 016. PAN: ABDFS 8494 G VS. INCOME TAX OFFICER, WARD - 10(4), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY: SRI SUNKU SRINIVAS, DR DATE OF HEARING: 05/11/2019 DATE OF PRONOUNCEMENT: 28 / 01 /20 20 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 12, HYDERABAD IN APPEAL NO. 0145/2016 - 17, DATED 12/5/2017 PASSED U/S. 143(3) R.W.S 254 OF THE ACT FOR THE A.Y. 2005 - 06. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS APP E AL , HOWEVER, THE CRUXES OF THE ISSUES ARE THAT: 1 . THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 7,00,000/ - MADE BY THE LD ASSESSING OFFICER TOWARDS CAPITAL CONTRIBUTION BY THE PARTNERS OF THE FIRM. 2 2 . THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE LD. ASSESSING OFFICER FOR RS. 2,50,760/ - TOWAR DS SUPPRESSION OF TURNOVER . 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM FILED ITS RETURN OF INCOME ON 2/2/2006 DECLARING INCOME OF RS. 6,829/ - . ON THE EARLIER OCCASION THIS BENCH OF THE TRIBUNAL IN ITA NO. 1398 & 1363 /HYD/2 010 VIDE ORDER DATED 30/03/2012 HAD SET ASIDE THE MATTER BACK TO THE LD. AO FOR DE NOVO CONSIDERATION. THEREAFTER, THE LD. AO PASSED ORDER U/S. 143(3) R.W.S 254 OF THE ACT DATED 24/2/2014 WHEREIN HE MADE ADDITION OF RS. 2,50,760/ - BY ESTIMATING THE INCOME AT 30% OF THE SUPPRESSED TURNOVER OF RS. 8,35,868/ - AND FURTHER MADE AN ADDITION OF RS. 7 LAKHS TOWARDS THE INTRODUCTION OF CAPITAL BY THE PARTNER SRI G. SAI BABA AND SMT. G. SASI REKHA OF RS. 2,50,000/ - AND RS. 4,50,000/ - RESPECTIVELY. ON APPEAL, THE LD. CIT (A) DISMISSED THE APPEAL OF THE ASSESSEE BY AGREEING WITH HIS VIEW. 4 . GROUND NO. 1 . ADDITION TOWARDS INTRODUCTION OF CAPITAL OF RS. 7 LAKHS: 4 .1 IT IS EVIDENT FROM THE ORDER OF THE LD AO AND THE LD. CIT (A) THAT THE SUBSTANTIVE ADDITION OF RS. 2,50,000 MADE IN THE HANDS OF THE PARTNER OF THE FIRM G. SAI BABA AND RS. 4,50,000 IN THE HANDS OF THE PARTNER OF THE FIRM G. SASI REKHA IS PENDING BEFORE TH E LD. AO. HENCE, THE PROTECTIVE ASSESSMENT OF RS. 7 LAKHS MADE IN THE HANDS OF THE 3 ASSESSEE IS HEREBY REMITTED BACK TO THE FILE OF THE LD. AO FOR DE NOVO CONSIDERATION. 5 . GROUND NO. 2 : ESTIMATION OF PROFIT ON THE SUPPRESSED SALE. 5 .1. AT THE OUTSET, I FIND THAT THE ASSESSEE HAS NOT BROUGHT OUT ANY REASONABLE MATERIAL TO CHALLENGE THE SUPPRESS ED SALES ARRIVED AT BY THE LD. AO. THE LD. CIT (A) CONFIRMED THE ORDER OF THE LD. AO FOR ESTIMATING THE INCOME AT 30% OF THE SUPPRESSED SALE BECAUSE THE ASSESSEE ITSELF HAD DECLARED THE GP RATE OF 30% OF ITS RETURN OF INCOME. IN THIS SITUATION, I DO NOT FIND IT NECESSARY TO INTERFERE WITH THE ORDERS OF THE LD. REVENUE AUTHORITIES ON THIS ISSUE . 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 28 TH JANUARY, 2020. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 28 TH JANUARY, 2020. OKK COPY TO: - 1) SAIS WHI T E HOUSE BAR AND RESTAURANT, 11 - 1 - 6254/1, MYLARGADDA, SEETHAPHALMANDI, SECUNDERABAD 500 016. 2) INCOME TAX OFFICER, WARD - 10(4), IT TOWERS, AC GUARDS, HYDERABAD. 4 3) THE CIT(A) - 12, HYDERABAD 4) THE PR. CIT - 5 , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE