RGV Film Factory Limited , Hyderabad V. Asst. Commissioner of Income Tax, Circle-14(1), Hyderabad

ITA 20/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1428 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 06-01-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 20 /HYD/20 20 (ASSESSMENT YEAR : 20 14 - 15 ) M/S. RGV FILM FACTORY LIMITED, HYDERABAD. PAN AADCR 1361H ..APPELLANT. VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 14(1), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI P. MURALI MOHANA RAO. RESPONDENT BY : SHRI WASEEM UR REHMAN (D.R.) DATE OF HEARING : 03.06 .2021. DATE OF PRONOUNCEMENT : 17. 0 6 .2021. . O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 6 , HYDERABAD S ORDER DT. 15.11. 2019 PASSED IN CASE NO. 0250/2016 - 17/A3/CIT(A) - 6 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE PERUSED. 2 ITA NO. 20/HYD/2020 2. THE ASSESSEE HAS PLEADED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL : 3 ITA NO. 20/HYD/2020 3. BOTH THE LEARNED REPRESENTA TIVES ARE VERY FAIR AT THE OUTSET, THE ASSESSEES SOLE SUBSTANTIVE GROUNDS RAISED IN THE INSTANT APPEAL ARISES THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS REJECTING ASSESSEE'S BOOKS OF ACCOUNTS FOLLOWED BY ESTIMATION OF PROFITS @ 10% OF TOTAL GROSS RECEIPTS AMOUNTING TO RS.10,61,62,225; COMING TO RS.1,06,16,222 IN THE COURSE OF ASSESSMENT . THE CIT(A) S LOWER APPELLATE ORDER HAS RESTRICTED ESTIMATION OF THE SAID PROFITS TO 8%. 4. LEARNED COUNSEL IS FAIR ENOUGH IN NOT PRESSING FOR T HE ASSESSEE'S FIRST AND FOREMOST GRIEVANCE QUA REJECTION OF ITS BOOKS OF ACCOUNTS PROVIDED THE SAME IS NOT TREATED AS A PRECEDENT. ORDERED ACCORDINGLY. 5. COMING TO THE SOLE SURVIVING LA T TER ISSUE OF QUANTIFICATION @ 8% IN ASSESSEE'S FILM PRODUCTI ON BUSINESS, LEARNED COUNSEL HAS FIRST INVITED OUR ATTENTION TO THE CLINCHING FACT THAT NEITHER THE LOWER AUTHORITIES HAVE BEEN GUIDED BY THE BOOK RESULTS OF THE PRECEDING OR SUCCEEDING ASSESSMENT YEAR S NOR HAVE THEY ADOPTED ANY COMPARABLE CASE IN THE VERY LINE OF BUSINESS. L EARNED DEPARTMENTAL 4 ITA NO. 20/HYD/2020 REPRESENTATIVE FAILS TO REBUT ALL THESE CLINCHING ASPECTS IN ASSESSMENT ORDER DT.27.12.2016 AS WELL AS IN THE CIT(A) ORDER. WE THEREFORE DE E M IT APPROPRIATE TO RESTRICT THE IM PUGNED ESTIMATION OF ASSESSEE'S PROFIT (S) FROM 8% TO 6% ONLY IN THE F.Y. 2013 - 14 WITH A RIDER THAT THE SAME SHALL NOT BE TAKEN AS A PRECEDENT IN ANY OTHER CASE OR ASSESSMENT YEAR. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. 6. THIS ASSESSEE'S APPEAL I S PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 17TH JUNE , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 17 .0 6 .2021. * REDDY GP COPY TO : 1. M/S. RGV FILM FACTORY LIMITED, 16/3 RT, PANJAGUTTA COLONY, PANJAGUTTA, HYDERABAD - 500 082 2. ACIT, CIRCLE 14(1), HYDERABAD. 3. PR. C I T - 6 , HYDERABAD. 4. CIT(APPEALS) - 6, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.