Income Tax Officer, Ward-1, Hyderabad V. Sri Gattu Pedda Yadagiri, Nalgonda

ITA 148/HYD/2014

• Counselvise Citation: 14822514 RSA 2014
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-01-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 31-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: RAVINDRA CHENJI
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.148/HYD/2014 ASSESSMENT YEAR 2010-2011 THE INCOME TAX OFFICER WARD-1 NALGONDA. VS. MR. GATTU PEDDA YADAGIRI NALGONDA PAN AHMPG2886R (APPLICANT) (RESPONDENT) FOR REVENUE : MR. RAJAT MITRA FOR ASSESSEE : MR. RAVINDRA CHENJI DATE OF HEARING : 13.01.2015 DATE OF PRONOUNCEMENT : 13.02.2015 ORDER PER B. RAMAKOTAIAH, A.M. THIS IS A REVENUE APPEAL AGAINST THE ORDER OF LD. CIT(A)-VI, HYDERABAD DATED 28.10.2013 CONTENDING TH AT LD. CIT(A) ERRED IN DELETING THE ADDITION MADE ON THE B ASIS OF THE ASSESSEE CONTENTION. 2. BRIEFLY STATED, ASSESSEE IS AN INDIVIDUAL CARRY ING ON BUSINESS IN GOLD AND SILVER. A SURVEY UNDER SECT ION 133A WAS CONDUCTED ON 15.10.2008 AND AS ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNTS, TRADING ACCOUNTS WERE PREPARED AND EXCESS STOCK VALUATION WAS ARRIVED AT RS.37,42, 275. EVEN THOUGH ASSESSEE CONTENDED THAT THE PHYSICAL STOCK I S TALLYING AND IN VALUATION OF STOCK, OFFICER CONSIDERED THE M ARKET VALUE INSTEAD OF COST PRICE OR MARKET PRICE WHICHEVER IS LOWER, A.O. REJECTED THE CONTENTIONS AND MADE THE ADDITION OF T HE ABOVE AMOUNT. 3. BEFORE LD. CIT(A), ASSESSEE SUBMITTED THAT A.O. HAS ACCEPTED THE CONSTRUCTED TRADING AND PROFIT AND LOSS 2 ITA.NO.148/HYD/2014 MR. GATTU PEDDA YADAGIRI STATEMENTS FOR THE EARLIER TWO YEARS, BUT HAS NOT A CCEPTED FOR THIS YEAR. IT WAS FURTHER CONTENDED THAT VALUATION OF STOCK ON MARKET PRICE HAS GIVEN RISE TO THE DIFFERENCE, WHER EAS, THERE WAS ONLY SMALL QUALITY OF GOLD AND SILVER IN EXCESS AND ITS VALUATION WAS RS.1,11,000. 4. LD. CIT(A) HAS NOT ONLY EXAMINED THE CONTENTION S BUT ALSO THE STATEMENTS FURNISHED BEFORE THE A.O. A ND CAME TO THE CONCLUSION THAT ADOPTION OF MARKET VALUE OF GOL D AND SILVER IS NOT CORRECT AND IF VALUED ON PRINCIPLES OF ACCOU NTING AT COST OR MARKET PRICE WHICHEVER IS LESS, THEN THERE IS NO VARIATION AS WORKED OUT BY A.O. HE ALSO EXAMINED THE QUANTITIES AND ACCEPTED ASSESSEES CONTENTION OF DIFFERENCE OF RS. 1,11,000 AND CONFIRMED THE SAME. 5. AFTER CONSIDERING THE RIVAL CONTENTIONS AND PERUSING THE ORDERS, WE ARE OF THE OPINION THAT A.O . HAS NOT MADE OUT A CASE FOR ADDITION. IN FACT, IN THE SURVE Y ITSELF A.O. ADOPTED MARKET VALUES OF STOCK WHICH GAVE RISE TO V ARIATION. MOREOVER, THE CONSTRUCTED TRADING AND P & L ACCOUNT S IN THREE YEARS WERE NOT DISTURBED, SO QUESTION OF ADDITION I N MIDDLE OF THE YEAR ON THE DATE OF SURVEY DOES NOT ARISE. SINC E LD. CIT(A) EXAMINED THE FACTS, WE DO NOT SEE ANY REASON TO DIS TURB THE SAME. THERE IS NO MERIT IN REVENUE CONTENTIONS. HEN CE, THE GROUND IS REJECTED. 6. IN THE RESULT, REVENUE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.02.2015. SD/- SD/- (SAKTIJIT DEY) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 13 TH FEBRUARY, 2015 VBP/- 3 ITA.NO.148/HYD/2014 MR. GATTU PEDDA YADAGIRI COPY TO 1. THE INCOME TAX OFFICER, WARD-1, NEAR RAILWAY UNDER BRIDGE, HYDERABAD ROAD, MARRIGUDA POST, NALGONDA 508 001. 2. MR. GATTU PEDDA YADAGIRI, PROP. SLN SWAMY JEWELLERS , NEW PRAKASHAM BAZAR, NALGONDA. 3. CIT(A)-VI, HYDERABAD 4. CIT-VI, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD.