Shri Raviteja Restaurant & Resorts P. Ltd, Hyderabad V. DCIT Central Cercle-2, Hyderabad

ITA 18/HYD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 6346 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 07-01-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: APPEALS MS; VASUNDHARA SINHA ITSSA NO HYD
• Assessee Lawyers: B R RAMESH
• Keywords: Search and seizure; Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER IT(SS)A NO.53/HYD/2009 : BLOCK P ERIOD FROM 1.4.1996 TO 4.7.2002 ITA NO.78/HYD/2010 : ASSESSMENT YEAR 2003-0 4 ITA NO.79/HYD/2010 : ASSESSMENT YEAR 2004-0 5 ITA NO.80/HYD/2010 : ASSESSMENT YEAR 2005-0 6 ITA NO.81/HYD/2010 : ASSESSMENT YEAR 2006-0 7 ITA NO.82/HYD/2010 : ASSESSMENT YEAR 2007-0 8 DY. COMMISSIONER OF INCOME- TAX, CENTR4AL CIRCLE-2, HYDERABAD. V/S M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LTD., HYDERABAD. ( PAN- AMPPS 0534 A ) (APPELLANT) (RESPONDENT) AND ITA NO.16/HYD/2010 : ASSESSMENT YEAR 2003-0 4 ITA NO.17/HYD/2010 : ASSESSMENT YEAR 2004-0 5 ITA NO.18/HYD/2010 : ASSESSMENT YEAR 2005-0 6 ITA NO.19/HYD/2010 : ASSESSMENT YEAR 2006-0 7 ITA NO.20/HYD/2010 : ASSESSMENT YEAR 2007-0 8 M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LTD., HYDERABAD. ( PAN- AMPPS 0534 A ) V/S DY. COMMISSIONER OF INCOME-TAX, CENTR4AL CIRCLE-2, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI B.R.RAMESH REVENUE BY : SMT. VASUNDHARA SINHA IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 2 O R D E R PER BENCH: THERE ARE ELEVEN APPEALS IN ALL IN THIS BUNCH. SIX OF THOSE APPEALS ARE FILED BY THE REVENUE AND THE REMAINING F IVE ARE FILED BY THE ASSESSEE. WHILE REVENUE'S APPEAL, IT(SS)A NO.53/HYD/200 9 IS DIRECTED AGAINST THE ORDER OF THE CIT(A) GUNTUR DATED 13.3.2 009 FOR THE BLOCK PERIOD FROM 1.4.1996 TO 4.7.2002, OUT OF THE REMAI NING, FOUR APPEALS EACH BY THE REVENUE AS WELL AS THE ASSESSEE ARE CROSS-APPEALS FOR THE ASSESSMENT YEARS FROM 2003-04 TO 2007-08, WHICH ARE DIRECT ED AGAINST A COMMON ORDER OF THE CIT(A)-I, HYDERABAD DATED 9.11.20 09 FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07 AND ANOTHER TWO APPE ALS ARE CROSS APPEALS DIRECTED AGAINST THE ORDER OF THE VERY SAME CI T(A) DATED 9.11.2009 FOR THE ASSESSMENT YEAR 2007-08. SINCE COMMON I SSUES ARE INVOLVED, ALL THESE APPEALS ARE BEING DISPOSED OFF BY T HIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. LET US FIRST TAKE UP FOR CONSIDERATION THE REVENUE' S APPEAL ARISING OUT OF THE BLOCK ASSESSMENT. REVENUE'S APPEAL : IT(SS)A NO.53/HYD/09: 3. FACTS OF THE CASE IN BRIEF GIVING RISE TO THIS APPEAL ARE THAT THE ASSESSEE-COMPANY IS ENGAGED IN BUSINESS, RUNNING A RESTAURAN T BY THE NAME AND STYLE 'OUR PLACE' AT HYDERABAD. THERE WERE SEARCH AND SEIZURE OPERATIONS CONDUCTED IN THE CASE OF THE ASSESSEE COMPANY AND ALSO IN THE CASE OF ITS MANAGING DIRECTOR, SHRI S.SUBASH ON 4.7.2002 . DURING THE COURSE OF SEARCH AND SEIZURE OPERATIONS, CERTAIN EVIDENCES R ELATING TO SUPPRESSION OF SALES BY THE ASSESSEE COMPANY WERE FOUND AND SE IZED. SHRI S.SUBASH, MANAGING DIRECTOR OF THE ASSESSEE COMPANY, IN HIS SWORN IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 3 STATEMENT RECORDED DURING THE COURSE OF SEARCH AND SEIZURE OPERATIONS, ADMITTED THAT THE ASSESSEE RESORTED TO SUPPRESSION OF 50% O F ITS TOTAL CASH RECEIPTS FROM 1999-2000 TO THE DATE OF SEARCH, WHICH AMOUNTED TO RS.1 CRORE AND GAVE THE APPLICATION OF THE ENTIRE UNDI SCLOSED INCOME UNDER VARIOUS HEADS. HOWEVER, IN RESPONSE TO THE NOTI CE ISSUED UNDER S.158BC OF THE ACT, ASSESSEE COMPANY FILED THE RETURN OF INCOME FOR THE BLOCK PERIOD DECLARING NIL INCOME FOR THE BLOCK PERIOD. THE ASSESSING OFFICER BROUGHT ON RECORD THE DECLARATION OF RS.1 CRORE ON ACCOUNT OF SUPPRESSION OF RECEIPTS AT 50% OF SALES. APART FROM THIS , THE ASSESSING OFFICER ALSO BROUGHT TO TAX THE CASH OF RS.2,07,960 FO UND AT THE TIME OF SEARCH, TREATING THE SAME AS UNEXPLAINED MONEYS. ACCORDIN GLY, THE ASSESSING OFFICER COMPLETED THE BLOCK ASSESSMENT ON A TOTAL IN COME OF RS.1,02,07,960, BY THE ORDER OF ASSESSMENT PASSED UNDER S. 158BC OF THE ACT. 4. ON APPEAL, THE CIT(A) TOOK NOTE OF THE STATEMENT FILED BY THE ASSESSEE'S AUTHORIZED REPRESENTATIVE ADMITTING ADDITIONAL TURNOVER ON VARYING PERCENTAGES OF CASH SALES OVER THE BLOCK PERIOD FR OM 1.4.1996 TO 4.7.2002, WHICH IS AS FOLLOWS- FINANCIAL YEAR ENDED CASH SALES PROPOSED ADDITIONAL TURNOVER PROPOSED ADDITIONAL TURNOVER AS % OF CASH TURNOVER 31.3.1999 NIL NIL NIL 31.3.2000 18.27,293 2,71,000 14.83% 31.3.2001 28,96,537 4,70,000 16.22% 31.3.2002 49.55,793 9,42,000 * UPTO 4TH JULY, 2002 (BROKEN PERIOD 14,59,147 2,90,000 19.87% THE CIT(A) OBSERVED THAT WHILE THE PERCENTAGE OF SUPPR ESSION ESTIMATED IS ACCEPTABLE WITH REGARD TO THE FINANCIAL YEAR ENDED ON 31.3.2000, THAT IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 4 BEING THE 1ST YEAR OF OPERATION, THE PERCENTAGE OF SUP PRESSION FOR THE YEAR ENDED ON 31.3.2001 IS ESTIMATED AT 25% OF THE CASH SALES OF RS.28,96,537 INSTEAD OF THE PERCENTAGE OF 16.22% ADOPT ED BY THE ASSESSEE (I.E. RS.7,24,134). AGAIN FOR THE FINANCIAL YE AR ENDED ON 31.3.2002 THE PERCENTAGE OF SUPPRESSION IS ESTIMATED AT 30% OF THE CASH SALES OF RS.49,55,793 (I.E. RS.14,86,738) AND THE SAME P ERCENTAGE OF 30% IS ADOPTED FOR THE PERIOD ENDED ON 4.7.2002 WHER E CASH SALES OF RS.14,59,147 (I.E. RS.4,37,745) ARE SHOWN. HE REJECTED THE PLEA OF THE ASSESSING OFFICER IN HIS REMAND REPORT FOR SUSTAINING THE A DDITION REPRESENTED BY THE ENTIRE SUPPRESSED TURNOVER, AND ADO PTING A NET PROFIT RATE OF 17% AND APPLYING THE SAME TO THE ADDITIONAL TURNOVER AND THE TURNOVER AS PER BOOKS, THE CIT(A) WORKED OUT THE PROF IT OF THE ASSESSEE AT RS.47,85,857, VIDE TABULATION APPEARING ON PAGES 19- 20 OF THE IMPUGNED ORDER, IN THE FOLLOWING MANNER- '.. YEAR TURNOVER AS PER BOOKS (NET OF SALES TAX) ADDITIONAL TURNOVER OFFERED IN RETURNS PROPORTIONATE PROPOSED ADDITIONAL TURNOVER TOTAL 31.3.1999 NIL NIL NIL NIL 31.3.2000 36,17,114 NIL 2,71,000 38,88,114 31.3.2001 62,24,753 NIL 7,24,134 69,48,887 31.3.2002 1,15,43,682 NIL 14,86,738` 1,30,30,420 UPTO 4TH JULY, 2002 38,46,933 NIL 29,19,617 42,84,678 TOTAL 2,81,52,099 PROFIT AT 17% RS.47,85,857.' HAVING THUS ESTIMATED THE PROFIT AND SUSTAINED ADDITION IN RELATION TO THE SUPPRESSED TURNOVER, THE CIT(A) FOUND NO JUSTIFICATION FOR THE ASSESSING OFFICER TO MAKE A SEPARATE ADDITION OF RS.2,07,960 ON ACCOUNT OF CASH FOUND AT THE TIME OF SEARCH. HE ACCORDINGLY DELETED THE SAME. AGGRIEVED BY THE ORDER OF THE CIT(A), REVENUE IS IN APPEAL BEF ORE US. IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 5 5. GROUNDS OF THE REVENUE IN THIS APPEAL READ AS FOLL OWS- '1. THE CIT(A) HAS ERRED IN HOLDING THAT NOT MUCH RELI ANCE CAN BE PLACED ON THE STATEMENTS GIVEN BY SHRI KRISHNADVARA Y7ULU, DIRECTOR AND THE ASSESSING OFFICER HAS RELIED MAINLY ON THE STATEMENTS TO SUPPORT HIS FINDING THAT THE APPLICATION OF MONEY T O THE EXTENT OF RS.1 CRORE CAN BE ESTABLISHED, THE SUPPRESSION OF R ECEIPTS IS ALSO TO THE EXTENT OF RS.1 CRORE. 2. THE CIT(A) HAS ERRED IN ESTIMATING THE SUPPRESSED T URNOVER AT DIFFERENT PERCENTAGES ON THE CASH SALES RECORDED ON LY INSTEAD OF ON THE TOTAL CASH SALES AS SHRI SUBASH, THE MANAGING D IRECTOR IN HIS SWORN STATEMENT ADMITTED THAT THE ASSESSEE COMPANY RESORTED T TO SUPPRESSION OF 50% OF ITS TOTAL CASH RECEIPTS FROM 1999-2000 TO THE DATE OF SEARCH AMOUNTING TO RS.1 CRORE AND GAVE THE APPLICATION OF THE SAME UNDER FOUR MODES. 3. THE CIT(A) ERRED IN HOLDING THAT IT WOULD BE UNJUST TO ESTIMATE THE SUPPRESSION MERELY BY EXTRAPOLATING ON THE BASIS OF THE MATERIAL FOUND IN THE SINGLE MONTH. THE METHOD OF EXTRAPOLAT ION IS UPHELD BY THE JURISDICTIONAL HIGH COURT OF ANDHRA PRADESH IN THE CASE OF M/S. RAJNIK & CO. VS. CIT(251 ITR 561). 4. THE CIT(A) ERRED IN NOT ACCEPTING THE ASSESSING OFF ICER'S CONTENTION IN THE REMAND REPORT SUBMITTED THAT SINC E THE SALES ARE UNRECORDED, THESE SHOULD BE CONSIDERED IN FULL. 5. THE CIT(A) ERRED IN DELETING THE ADDITION MADE TOWA RDS UNACCOUNTED CASH FOUND DURING THE COURSE OF SEARCH AND SEIZURE OPERATION AT THE CUP BOARD OF SRI KRISHNADEVARAYULU , DIRECTOR OF THE ASSESSEE COMPANY.' 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE, REITE RATING THE ABOVE GROUNDS STRONGLY RELIED ON THE ORDER OF THE ASSESS ING OFFICER AND SUBMITTED THAT THE CIT(A) WAS NOT JUSTIFIED IN SUSTAIN ING ONLY A PART OF THE ADDITION MADE BY THE ASSESSING OFFICER IN RELATION TO T HE SUPPRESSED TURNOVER, ON THE GROUND THAT IT IS ONLY THE PROFIT I N RELATION TO SUCH SUPPRESSED TURNOVER WHICH IS ASSESSABLE IN THE IMPUGNED BLOCK ASSESSMENT. SHE ALSO SUBMITTED THAT THE CIT(A) WAS ALSO N OT JUSTIFIED IN DELETING THE SEPARATE ADDITION ON ACCOUNT OF CASH FOUN D AT THE TIME OF SEARCH, MADE BY THE ASSESSING OFFICER. IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 6 7. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER H AND, STRONGLY SUPPORTED THE ORDER OF THE CIT(A) AND SUBMIT TED THAT IN RELATION TO THE SUPPRESSED TURNOVER, IT IS ONLY THE PROFIT WHICH IS LIABLE TO BE BROUGHT TO TAX AND NOT THE ENTIRE SUPPRESSED TURNOVER. HE RELIED IN THIS BEHALF ON THE DECISIONS OF THE GUJARAT HIGH COURT IN TH E CASE OF CIT V/S. GURUBACHHAN SINGH J. JNNEJA (302 ITR 63)(GUJ) AND ACT ION ELECTRICALS V/S. DCIT(258 ITR 188). HE ALSO SUBMITTED THAT SEPARATE A DDITION IN RESPECT OF THE CASH FOUND AT THE TIME OF SEARCH IS NOT CALLED FOR , AS IT IS COVERED BY THE ADDITION SUSTAINED IN RELATION TO THE SUPPRESSED TUR NOVER. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND OTHER MATERIAL AV AILABLE ON RECORD. WE FIND THAT THE CIT(A) HAS PASSED A WELL REASONED ORDER A ND TAKING INTO ACCOUNT THE TURNOVER AS PER BOOKS FROM YEAR TO YEAR, EST IMATED PERCENTAGE OF SUPPRESSION ON YEAR TO YEAR BASIS IN A REAS ONABLE MANNER, AND APPLYING A RATE OF 17% TO THE TURNOVER NET OF SALES TAX, WORKED OUT THE PROFIT AND SUSTAINED THE ESTIMATED ADDITION. WE F IND NO INFIRMITY IN THE ACTION OF THE CIT(A) IN THIS BEHALF. SINCE AN ESTI MATED ADDITION HAS BEEN MADE IN RESPECT OF INCOME IN RELATION TO THE SUPPR ESSED TURNOVER, AND SUCH ADDITION IS LARGER THAN THE AMOUNT OF UNACCOUNT ED CASH OF RS.2,07,960 FOUND AT THE TIME OF SEARCH. THERE IS NO JU STIFICATION FOR A SEPARATE ADDITION IN THAT BEHALF. WE FIND NO JUSTIFI CATION TO INTERFERE WITH THE ORDER OF THE CIT(A) ON BOTH THESE ASPECTS. ACCORDING LY, GROUNDS OF THE REVENUE IN THIS APPEAL, BEING DEVOID OF MERIT, A RE LIABLE TO BE REJECTED. WE ACCORDINGLY REJECT THE SAME AND DISMISS THIS APPEAL. 9. LET US NOW TAKE UP FOR CONSIDERATION, THE CROSS-APPEA LS FOR THE ASSESSMENT YEARS 2003-04 TO 2007-08. THE ONLY DISPUTE IN ALL THESE APPEALS RELATE TO ESTIMATION OF PROFIT OF THE ASSESSEE F OR THE YEARS UNDER IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 7 CONSIDERATION. THE CIT(A) BY THE ORDERS IMPUGNED IN T HESE APPEALS HAS, TAKING NOTE OF THE FACT THAT WHILE DISPOSING OFF THE APPEAL ARISING OUT OF THE BLOCK ASSESSMENT FOR THE PERIOD FROM 1.4.1996 TO 4 .7.2002, HE HAS DIRECTED ESTIMATION OF PROFIT AT 17% OF THE TURNOVER NET OF SALES TAX, FOR THE BLOCK PERIOD, UPHELD THE ADOPTION OF THE RATE OF 17% BY THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR 2003-04. HOWEVER, FOR T HE SUBSEQUENT YEARS, CONSIDERING THE FACT THAT THERE WAS SUBSTANTIAL IN CREASE IN TURNOVER AND ENDORSING THE STAND OF THE ASSESSING OFFICER FOR INCREM ENTAL INCREASE IN THE RATE OF PROFIT BY 0.5% DIRECTED THE ESTIMATION OF PROFIT AT 17.5%, 18%, 18.5% AND 19% FOR THE ASSESSMENT YEARS 2004-05, 200 5-06 2006- 07 AND 2007-08 RESPECTIVELY, BUT DIRECTED THE APPLICAT ION THOSE ESTIMATED RATES OF PROFITS TO THE TURNOVER NET OF SALES TAX. 10. AGGRIEVED BY THE ESTIMATED ADDITIONS SUSTAINED BY THE CIT(A) FOR THESE YEARS, ASSESSEE IS IN APPEAL BEFORE US, WHEREAS A GGRIEVED BY THE DIRECTION OF THE CIT(A) FOR ESTIMATION OF PROFIT ON T HE TURNOVER NET OF SALES TAX, REVENUE IS IN APPEAL BEFORE US. 11. LEARNED COUNSEL FOR THE ASSESSEE, WITH REG ARD TO THE APPEALS FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07, REITERATIN G THE CONTENTIONS URGED BEFORE THE LOWER AUTHORITIES SUBMITTED THAT TH E CIT(A) ERRED IN PASSING THE ORDERS FOR THE ASSESSMENT YEARS 2003-04 TO 200 6-07 WITHOUT DISPOSING OFF THE APPEALS FOR THE ASSESSMENT YEAR 2007-08, WHICH IS THE BASIS FOR ALL THE IMPUGNED ASSESSMENTS AND APPEALS. IT IS ALSO CONTENDED THAT THE FACTS AND CIRCUMSTANCES OF THE CASE DURING THE BLO CK PERIOD OF ASSESSMENT WERE DIFFERENT FROM THOSE IN THE YEARS UNDER CO NSIDERATION, THEREBY AFFECTING THE RATE OF ESTIMATION OF INCOME. IT IS ALSO CONTENDED THAT THE CIT(A) ERRED IN UPHOLDING THE ESTIMATION OF PROFIT WITHOUT EXAMINING WHETHER PROPER OPPORTUNITY WAS GRANTED TO THE ASSESSEE TO IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 8 EXPLAIN THE DISCREPANCIES IN BOOKS. WITH REGARD TO TH E APPEAL FOR THE ASSESSMENT YEAR 2007-08, IT IS ALSO CONTENDED BY THE LEARN ED COUNSEL FOR THE ASSESSEE THAT THE CIT(A) OUGHT TO HAVE GIVEN A SPEA KING ORDER ON EACH OF THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE BEFO RE HIM. 12. LEARNED DEPARTMENTAL REPRESENTATIVE ON THE OTH ER HAND, STRONGLY OPPOSING THE ABOVE CONTENTIONS OF THE ASSESSEE, SUB MITTED THAT THE CIT(A) WAS NOT JUSTIFIED IN DIRECTING ESTIMATION OF PROFIT IN RELATION TO ONLY NET SALES, VIZ. GROSS SALES NET OF SALES TAX. 13. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. AS FOR THE APPEALS OF T HE REVENUE, THE ONLY GRIEVANCE OF THE REVENUE IS AGAINST ESTIMATION OF PROF IT ON SALES TURNOVER NET OF SALES TAX. WE HAVE UPHELD THE METHOD OF ESTI MATION OF TURNOVER, NET OF SALES TAX, AND DETERMINATION OF PROFIT AT 17% THEREOF IN RELATION TO SUCH NET SALES, IN THE CONTEXT OF THE APPEAL OF THE REVE NUE FOR THE BLOCK PERIOD, VIDE PARA 8 HEREINABOVE. THE METHOD OF ESTI MATION OF PROFIT IN RELATION TO THE TURNOVER NET OF SALES TAX IS CONSISTENT WITH THE METHOD ADOPTED FOR THE BLOCK PERIOD, WHICH WE HAVE UPHELD H EREINABOVE, WE FIND NO MERIT IN THE GRIEVANCE OF THE REVENUE ON THIS ASPE CT. ACCORDINGLY GROUNDS OF THE REVENUE IN THESE APPEALS ARE REJECTED. AS FOR THE APPEALS OF THE ASSESSEE, THE MAIN GRIEVANCE OF THE ASSESSEE RELATES TO THE DIFFERENT PERCENTAGES ADOPTED FOR ESTIMATING THE PROFI T IN RELATION TO THE TURNOVER DETERMINED. AS NOTED ABOVE, THE REVENUE AU THORITIES HAVE, CONSIDERING THE PERCENTAGE OF 17% ADOPTED FOR THE BLOCK PERIOD FOR ESTIMATING THE ASSESSEE'S PROFIT FOR THE BLOCK PERIOD, ADO PTED INCREMENTAL PERCENTAGES, ENHANCING THE SAID 17% BY 0.5% FOR EACH SUCCEE DING YEAR SUCCEEDING THE BLOCK PERIOD, VIZ. FROM ASSESSMENT YEARS 2004 -05 TO 2007-08. NOTWITHSTANDING THE INCREASE IN THE FIGURES O F TURNOVER, WE FIND IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 9 NO JUSTIFICATION FOR MECHANICAL INCREASE IN THE PERCENTAG ES TO BE ADOPTED FOR ESTIMATING PROFIT ON THE FIGURES OF SUCH TURNOVER. CONSIDERING TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE AND AS AGREED BY BOTH THE PARTIES DURING THE COURSE OF HEARING OF THESE APPEALS, WE FIND THAT ENDS OF JUSTICE WOULD BE MET, IF THE PROFIT OF THE ASSESSEE FOR THE YEA RS UNDER CONSIDERATION IN THESE APPEALS IS ALSO ESTIMATED ADOPTING THE RATE OF 17%, AS DONE FOR THE BLOCK PERIOD. WE ACCORDINGLY SET ASIDE THE IMPUGNED ORDERS OF THE CIT(A), AND DIRECT THE ASSESSING OFFICER TO ESTIMATE THE PROFIT ON SALES TURNOVER, NET OF SALES TAX, ADOPTING A RATE OF 17% FOR THE YEARS UNDER CONSIDERATION IN THESE APPEALS. 14. IN THE RESULT, WHILE ALL THE SIX APPEALS OF THE REVENUE ARE DISMISSED, ALL THE FIVE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.9.2010 A T THE CONCLUSION OF THE HEARING ON THESE APPEALS. SD/- SD/- (G.C.GUPTA) (CHANDRA POOJARI) VICE PRESIDENT. ACCOUNTANT L MEMBER. DT/- 30TH SEPTEMBER, 2010 COPY FORWARDED TO: 1. M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LTD., C/O.M/S. MAHESH, VIRENDER & SRIRAM, CHARTERED ACCOUNTA NTS, 6-3-788/36 &37A, AMEERPET, HYDERABAD. 2. DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-2, HY DERABAD 3. COMMISSIONER OF INCOME-TAX (APPEALS) I, HYDERABAD. IT(SS)A NO.53/HYD/09 AND 10 APPEALS M/S. SHRI RAVITEJA RESTAURANTS & RESORTS PVT. LT D., HYD . 10 4. 5. 6. COMMISSIONER OF INCOME-TAX (A) GUNTUR COMMISSIONER OF INCOME-TAX CENTRAL, HYDERABAD. THE D.R., ITAT, HYDERABAD. B.V.S.