Sujana Universal Industries Limited, Hyderabad V. ACIT, Circle-3(2), Hyderabad, Hyderabad

ITA 1620/HYD/2014

• Counselvise Citation: 162022514 RSA 2014
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-03-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 20-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Rejection of books of accounts
• Section: 115JB

Judgement Text

ITA NOS.1620 AND 1192 SUJANA UNIVERSAL HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER & SMT.ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1620/HYD/2014 (ASSESSMENT YEAR: 2010-11) M/S. SUJANA UNIVERSAL INDUSTRIES LTD HYDERABAD PAN: AACCS 8630 H VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 3(2) HYDERABAD (APPELLANT) (RESPONDENT) ITA NO.1192/HYD/2014 (ASSESSMENT YEAR: 2010-11) ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 3(2) HYDERABAD VS. M/S. SUJANA UNIVERSAL INDUSTRIES LTD HYDERABAD PAN: AACCS 8630 H (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P. MURALI MOHAN RAO, CA FOR REVENUE : SHRI D. SUDHAKAR RAO, CIT(DR) DATE OF HEARING : 05/03/2015 DATE OF PRONOUNCEMENT : 18 /03/2015 O R D E R PER BENCH: THESE ARE CROSS APPEALS PREFERRED BY THE ASSESSEE AND THE REVENUE AGAINST THE ORDER OF THE LD CIT (A)-IV HYDE RABAD DATED 10.04.2014 PASSED FOR A.Y 2010-11. ITA NOS.1620 AND 1192 SUJANA UNIVERSAL HYDERABAD PAGE 2 OF 4 2. BRIEFLY STATED, ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF BEARINGS, HOME APPLIAN CES AND TRADING OF STEEL PRODUCTS. ASSESSEE COMPANY FILED I TS RETURN OF INCOME ON 12.10.2010 ADMITTING A TOTAL INCOME OF RS.6,46,88,351 BEFORE ADJUSTING SET OFF OF BROUGHT FORWARD LOSS UNDER NORMAL PROVISIONS AND A BOOK PROFIT OF RS.6,4 0,43,182 U/S 115JB OF THE I.T. ACT, 1961. 3. IN THE COURSE OF THE ASSESSMENT PROCEEDINGS, AO DIRECTED THE ASSESSEE TO FURNISH INFORMATION AND DOCUMENTS I N SUPPORT OF THE ENTRIES IN ITS AUDITED RESULTS AND THE RETURN O F INCOME. AO ALSO ISSUED A DETAILED SHOW CAUSE LETTER DATED 31.1 .2013 TO THE ASSESSEE SPECIFYING THESE REQUIREMENTS. HOWEVER, AS SESSEE FAILED TO PRODUCE ANY OF THESE DETAILS. UNDER THE CIRCUMST ANCES, AO REJECTED THE BOOKS OF ACCOUNTS SINCE IT WAS NOT POS SIBLE TO ARRIVE AT THE CORRECT INCOME OF THE ASSESSEE FROM THE BOOK S OF ACCOUNTS STATED TO HAVE BEEN MAINTAINED BY THE ASSESSEE. 4. AO ESTIMATED THE NET INCOME AT 1.5% OF THE TOTAL TURNOVER. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE THE FIR ST APPELLATE AUTHORITY. THE LD CIT (A) UPHELD THE ORDER OF THE A O AND REJECTED THE BOOKS OF ACCOUNTS. ITA NOS.1620 AND 1192 SUJANA UNIVERSAL HYDERABAD PAGE 3 OF 4 5. THE CIT (A) HELD AS FOLLOWS: 9.THE AO ESTIMATED THE INCOME AT 1.5% OF THE TOTAL TURNOVER OF THE APPELLANT. FOR THE PRECEDING A.Y 2009-10 IN THE APPELLANTS OWN CASE, I HAD, IN MY ORDER IN ITA NO.465/AC 3(2)/CIT (A)-IV/2011-12 DATED 22.1.2013 UNDER SIMILAR CIRCUMSTANCES, DIRECTED THE AO TO ESTIMATE THE INCOME OF THE APPELLANT AT 1% OF THE TURNOVER 6. WE FIND THAT THE ISSUE IS COVERED BY THE DECISIO N OF THE ITAT COORDINATE BENCH, IN ASSESSEES OWN CASE IN ITA NOS . 304 & 305/HYD/2013 FOR THE A.Y 2009-10. THE RELEVANT PORT ION OF THE DECISION AT PARA 10 OF THE ORDER IS EXTRACTED BELOW : 10. CONSIDERING THE SUBMISSIONS OF THE PARTIES AND KEEPING IN VIEW THE INTEREST OF JUSTICE, WE ALLOW O NE MORE OPPORTUNITY TO THE ASSESSEE FOR PRODUCTION OF ITS B OOKS OF ACCOUNTS AND OTHER DOCUMENTS BEFORE THE ASSESSING O FFICER TO SUBSTANTIATE ITS CLAIM AND ACCORDINGLY, SET ASID E THE ORDER OF THE CIT(A) AND REMIT THE MATTER TO THE FIL E OF THE ASSESSING OFFICER FOR DENOVO ASSESSMENT AFTER EXAMI NING THE BOOKS OF ACCOUNTS AND OTHER DOCUMENTS. WE ALSO DIRECT THE ASSESSEE TO PRODUCE ALL ITS BOOKS OF ACCOUNTS, DOCUMENTS, BILLS, INVOICES AND ANY OTHER INFORMATIO N CALLED FOR BY THE ASSESSING OFFICER AND COOPERATE IN FINAL ISATION OF THE PROCEEDING. IN THE EVENT, THE ASSESSEE DOES NOT CO- OPERATE BY PRODUCING THE BOOKS OF ACCOUNTS AND OTHE R INFORMATION CALLED FOR BY THE ASSESSING OFFICER OR IF THE ASSESSING OFFICER ON EXAMINATION OF THE BOOKS OF AC COUNTS AND OTHER DOCUMENTS FINDS THAT THERE ARE DISCREPANC IES WHICH THE ASSESSEE IS NOT ABLE TO EXPLAIN, THE ASSE SSING OFFICER WOULD BE AT LIBERTY TO TAKE AN INDEPENDENT DECISION IN THE MATTER IN ACCORDANCE WITH LAW. THE ASSESSING OFFICER SHALL AFFORD A REASONABLE OPPORTUNITY OF BEING HEAR D TO THE ASSESSEE. 7. RESPECTFULLY FOLLOWING THE DECISION OF THE COORD INATE BENCH, IN ASSESSEES OWN CASE FOR A.Y 2009-10, WE SET ASID E THE ISSUE TO ITA NOS.1620 AND 1192 SUJANA UNIVERSAL HYDERABAD PAGE 4 OF 4 THE FILE OF THE AO TO DECIDE THE MATTER AFTER GIVIN G ONE MORE OPPORTUNITY TO THE ASSESSEE. BOTH THE APPEALS ARE A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH, 2015. S D/ - S D/ - (P.M. JAGTAP) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 18 TH MARCH, 2015. VNODAN/SPS COPY TO: 1. P. MURALI & CO. CA, 6-3-655/2/3 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500082 2. ACIT CIRCLE 3(2) HYDERABAD 3. THE CIT(A)-IV HYDERABAD 4. THE CIT III HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER