M/s. Surdeep Kaur Alias Charmee, Hyderabad V. The DCIT Central Circle - 7, Hyderabad

ITA 1549/HYD/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53713 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 30-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 10-12-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: DISPOSED OFF; IDENTICAL ISSUE IS INVOLVED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRAPOOJARI, ACCOUNTANT MEMBER ITA NOS.1547 TO 1550/HYD/2010 : ASST. YEARS 2005-06 TO 2008-09 MISS SURDEEP KAUR ALIAS CHARMME, -V- DCIT, CE NTRAL CIR-7, MADHAPUR, HYDERABAD. HYDERABAD. (PAN: AAPPU9162 J) (APPELLANT) (RESPONDENT) APPELLANT: SRI S.S.CHOUDH ARY RESPONDENT: SRIV.SRINIVAS DATE OF HEARING: 19-10-2011. DATE OF PRONOUNCEMENT: 19 -10-2011 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THESE FOUR APPEALS FILED BY THE ASSESSEE IN THE C ASE OF THE SAME ASSESSEE, ARISE OUT OF SEPARATE ORDERS OF CIT (A)-VII, HYDERABAD ALL DATED 4-10-2010 AND THEY PERTAIN TO T HE ASSESSMENT YEARS 2005-06 TO 2008-09. SINCE COMMON & IDENTICAL ISSUE IS INVOLVED AND THE ASSESSEE IS ALSO SAME IN ALL THESE APPEALS, THESE ARE CLUBBED TOGETHER AND DISPOSED OF F BY THIS COMBINED ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS.1547 TO1550/HYD/10 MISS CHARMEE, HYD. ====================== 2 2. THE ONLY COMMON EFFECTIVE GROUND OF APPEAL IS WITH REGARD TO THE ADDITION MADE ON ESTIMATE BASIS AT 80% ON TH E GROSS RECEIPTS OF THE ASSESSEE BY THE ASSESSING OFFICER. 3. THE LEARNED AUTHORIZED REPRESENTATIVE OF THE ASS ESSEE SUBMITTED THAT IN THE EARLIER YEAR, THE TRIBUNAL HA S PASSED ORDER WITHOUT PARTICIPATION OF THE LEARNED COUNSEL FOR TH E ASSESSEE AND THE ESTIMATED INCOME IN THOSE CASES IS ON HIGHER SI DE AND THE SAME SHOULD NOT BE FOLLOWED. 4. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPR ESENTATIVE WHILE OPPOSING THE CONTENTIONS PUT FORWARD BY THE L EARNED COUNSEL FOR THE ASSESSEE AND RELIED ON THE ORDER OF THE TRI BUNAL IN THE ASSESSEES OWN CASE DATED 11-3-2011 IN ITA NOS. 160 0 TO 1603/HYD/2010 WHEREIN HELD AS FOLLOWS: WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RELEVAN T MATERIAL AVAILABLE ON RECORD. IT IS THE CASE OF THE ASSESSEE THAT THE ASSESSEE USED TO GET VERY NOMINAL FEES AT THE INITIAL STAGE OF ACTING FILMS SINCE THE ASSESSEE DI D NOT HAVE MUCH OF RECOGNITION AMONG THE AUDIENCE AND THE ASSE SSEE HAD TO INCUR VARIOUS EXPENSES DURING HER STRUGGLING DAYS. THEREFORE, THE ASSESSEE ADMITTED HER INCOME WHICH W ORKS TO AROUND 55% OF THE GROSS RECEIPTS AND THE SAME IS REASONABLE. IT APPEARS THAT THE ASSESSEE WOULD HAV E INCURRED VARIOUS EXPENSES FOR GETTING GOOD ROLES IN MOVIES AND THEREAFTER TO MAINTAIN HER OWN STAND TO SURVIVE IN THE FILM INDUSTRY. THEREFORE, IN OUR CONSIDERED VIEW, INTEREST OF JUSTICE WOULD BE MET IF WE ESTIMATE THE NET INCOME OF THE ASSESSEE AT 70% OF THE GROSS RECEIPTS AS AGAINST 80 % ESTIMATED BY THE ASSESSING OFFICER AND 57% CONFIRME D BY THE CIT (A). ACCORDINGLY, WE DIRECT THE ASSESSING O FFICER TO ITA NOS.1547 TO1550/HYD/10 MISS CHARMEE, HYD. ====================== 3 ESTIMATE THE NET INCOME OF THE ASSESSEE AT 70% OF T HE GROSS RECEIPTS FOR ALL THE YEARS UNDER CONSIDERATIO N. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AFTER G OING THROUGH THE ORDER OF THE TRIBUNAL MENTIONED SUPRA, WE FIND THAT THE TRIBUNAL DECIDED THE ISSUE ON MERIT WITHOUT PARTICIPATION OF THE ASSESSEES COUNSEL AND ESTIMATED THE INCOME AT 70% OF THE GROS S RECEIPTS AFTER CONSIDERING THE TOTALITY OF FACTS AND THE CIR CUMSTANCES OF THE CASE. HENCE, IN OUR OPINION, THE ESTIMATION OF INCO ME AT 70% OF THE TOTAL GROSS RECEIPTS DISCLOSED BY THE ASSESSEE AS WELL AS UNDISCLOSED RECEIPTS IS REASONABLE. IN VIEW OF THE ABOVE, WE DIRECT THE ASSESSING OFFICER TO ESTIMATE THE INCOME AT 70% OF THE TOTAL GROSS RECEIPTS AS WELL AS UNDISCLOSED RECEIPTS AND COMPUTE THE INCOME ACCORDINGLY. IT NEEDLESS TO SAY THAT THE ASS ESSEE IS ENTITLED FOR DEDUCTION UNDER SECTION 80C/80L AS THE CASE MAY BE, IF ALREADY CLAIMED BY THE ASSESSEE, IF ANY. 6. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE A LLOWED IN PART. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 19 -10-2 011. SD/- (G.C. GUPTA) SD/- (CHANDRA POOJARI) VICE PRESIDENT ACCOUNTANT MEMBER DT. 19-10-2011. ITA NOS.1547 TO1550/HYD/10 MISS CHARMEE, HYD. ====================== 4 COPY FORWARDED TO: 1. MISS. SURDEEP KAUR ALIAS CHARME, FLAT NO.102, ALPHA BLOCK, JAYABHERI, SILICON COUNTY, MADHAPUR, HYDERABAD. 2. DCIT, CENTRAL CIRCLE- 7, 8 TH FLOOR, AAYAKAR BHAVAN, HYDERABAD. 3. 4. CIT (A)-VI, HYDERABAD. CIT, A P, HYDERABAD. 5. THE D.R., ITAT, HYDERABAD JMR*