Income Tax Officer, Ward-9(2), Hyderabad V. Sri Matha Wines, Hyderabad

ITA 137/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61874 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 31-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: V SRINIVAS AND

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.137/HYD/2012 (ASSESSMENT YEAR 2007-08) INCOME TAX OFFICER, WARD-9(2), HYDERABAD V/S M/S.SRI MATHA WINES, HYDERABAD ( PAN - ABDFS 1661 F ) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. NIVEDITA BISWAS RESPONDENT BY : SHRI V.SRINIVAS AND ITA NO.138/HYD/2012 (ASSESSMENT YEAR 2008-09) INCOME TAX OFFICER, WARD-9(2), HYDERABAD V/S M/S. SRI SHIVA GANGA WINES, HYDERABAD ( PAN - ABDFS 1661 F ) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. NIVEDITA BISWAS RESPONDENT BY : SHRI RAVI SESHAGIRI RAO DATE OF HEARING 2.5.2012 DATE OF PRONOUNCEMENT 4.5.2012 O R D E R PER D.KARUNAKARA RAO, ACCOUNTANT MEMBER: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGA INST SIMILAR BUT SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX(APPEALS)- VI, HYDERABAD DATED 25.11.2011. ASSESSMENT YEARS IN VOLVED ARE 2007-08 AND 2008-09 RESPECTIVELY IN THE TWO APPEALS UNDER C ONSIDERATION. SINCE A ITA NO.137 & 138/HYD/2012 M/S.SRI MATHA WINES, HYDERABAD & ANR. 2 COMMON ISSUE IS INVOLVED, BOTH THESE APPEALS ARE BE ING DISPOSED OFF WITH THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY COMMON ISSUES INVOLVED IN BOTH THESE A PPEALS RELATES TO ESTIMATION OF PROFIT OF THE ASSESSEES FR OM THE BUSINESS OF RETAIL TRADE IN LIQUOR. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSI NG OFFICER, IN THE COURSE OF ASSESSMENT PROCEEDINGS UNDER S.143(3) OF THE ACT, FOUND THAT THAT THE ASSESSEES WERE UNABLE TO PRODUCE THE EVIDE NCE FOR ITS TURNOVER IN THE FORM OF SALE BILLS. OBSERVING THAT THE ENTI RE PURCHASES OF THE ASSESSEES ARE FROM THE ANDHRA PRADESH BEVERAGES COR PORATION LTD., AND AS PER THE INSTRUCTIONS OF THE GOVERNMENT OF ANDHRA PRADESH, THE RETAILERS MARGIN WAS FIXED AT 30% OVER THE COST PR ICE OF THE LIQUOR PRODUCTS, THE ASSESSING OFFICER COMPUTED, IN THE C ASE OF M/S. SRI MATHA WINES, THE TURNOVER BY ADOPTING THE PROFIT MARGIN A S 30% AND ADDED THE DIFFERENCE TO THE INCOME OF THE ASSESSEE AS SUPPRES SED TURNOVER. IN THE CASE OF M/S.SHIVA GANGA WINES, THE ASSESSING OFFICE R COMPUTED THE TURNOVER BY ADOPTING THE PROFIT MARGIN AS 27% AND A DDED THE DIFFERENCE TO THE INCOME OF THE ASSESSEE AS SUPPRESSED TURNOVE R. 4. ON APPEAL, THE CIT(A), BY THE ORDERS IMPUGNED, BY FOLLOWING THE DECISION OF THIS TRIBUNAL IN ITA NO.591/HYD/201 1 DATED 28.7.2011 IN THE CASE OF M/S. KANAKA DURGA WINES, DIRECTED THE ASSESSING OFFICER IN BOTH THESE CASES, TO ESTIMATE THE NET PROFIT AT 3% OF THE PURCHASES OR STOCK PUT FOR SALE DURING THE YEAR, SUBJECT TO THE ASSESSED INCOME BEING NOT LESS THAN THE RETURNED INCOME. 5. AGGRIEVED BY THE ORDERS OF THE CIT(A), REVENUE IS IN APPEAL BEFORE US. ITA NO.137 & 138/HYD/2012 M/S.SRI MATHA WINES, HYDERABAD & ANR. 3 6. WE HEARD BOTH THE PARTIES. THE IMPUGNED ORDERS OF THE CIT(A) IN DIRECTING THE ASSESSING OFFICER TO ESTIMA TE THE PROFIT OF THE ASSESSEE AT 3% OF THE PURCHASES OR STOCK PUT FOR SA LE DURING THE YEAR, AS NOTED ABOVE, ARE BASED ON THE DECISION OF THE TRIBU NAL IN ITA NO.591/HYD/2011 DATED 28.7.2011. WE FIND THAT THE COORDINATE BENCHES OF THIS TRIBUNAL HAVE BEEN CONSISTENTLY FOLLOWING T HAT VERY DECISION OF THE TRIBUNAL RELIED UPON BY THE CIT(A), IN THEIR RECENT ORDERS IN SIMILAR CASES, AS IN ITA NO.1997/HYD/2011 & CO NO.28/HYD/2012 IN T HE CASE OF M/S. LAKSHMI SRINIVASA WINES, NALGONDA AND OTHERS, VIDE ORDER DATED 30.3.2012, TO WHICH ONE OF US, VIZ. THE ACCOUNTANT MEMBER IS A PARTY. IN THIS VIEW OF THE MATTER, FOLLOWING THE CONSISTENT V IEW TAKEN BY THIS TRIBUNAL, WE FIND NO INFIRMITY IN THE IMPUGNED ORDE RS OF THE CIT(A), WHICH ARE ACCORDINGLY CONFIRMED AND THE GROUNDS OF THE RE VENUE IN BOTH THESE APPEALS ARE REJECTED. 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 4.5.2012 SD/- SD/- (SAKTIJIT DEY) (D.KARUNAKARA RAO) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- MAY, 2012 COPY FORWARDED TO: 1. 2. 3. M/S.SRI MATHA WINES, H.NO.18 - 7 - 12, GOWLIPURA, HYDERABAD M/S. SRI SHIVA GANVA WINES, H.NO.17-1-41, SHANKESH WAR BAZAR , HYDERABAD INCOME-TAX OFFICER, WARD-9(2), HYDERABAD 4 . COMMISSIONER OF INCOME - TAX(APPEALS) VI, HYDERABAD 5. 6. COMMISSIONER OF INCOME-TAX V HYDERABAD DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.