Reliance Bar & Restaurant, Hyderabad V. Income Tax Officer, Ward-15(4), Hyderabad

ITA 2199/Hyd/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7462 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 04-12-2018
• Assessment Year: 2014-2015
• Appeal Filed On: 22-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN KATTA
• Assessee Lawyers: A KIRAN MANOHAR
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 2199/HYD/2017 ASSESSMENT YEAR: 2014-15 RELIANCE BAR & RESTAURANT, 19-71/A2/1, GROUND FLOOR, RUKMINIPURAM, DR. A.S RAO NAGAR, HYDERABAD. PAN AAFFR6136D VS. ITO, WARD 15(4), HYDERABAD. (APPLICANT) (RESPONDENT) ASSESSEE BY : SHRI A. KIRAN MANOHAR, AR REVENUE BY : SHRI KIRAN KATTA (DR) DATE OF HEARING : 04-12-2018 DATE OF PRONOUNCEMENT : 10-01-2019 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS ASSESSEES APPEAL FOR THE A.Y 2014-15 AGAINST THE ORDER OF THE CIT(A)-7, HYDERABAD DATED 23.10.2017, IN ESTIMATING THE INCOME FROM SALE OF LIQUOR AT 5% AND THE INCOME FROM THE SALE OF FOOD ITEMS AT 10%. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A PARTNERSHIP FIRM, ENGAGED IN THE BUSINESS OF RUNNING A BAR AND RESTAURANT BY NAME AND STYLE RELIANCE RESTAURANT AND BAR, FILED ITS RETURN OF INCOME ELECTRONICALLY ON 2 ITA.NO. 2199/HYD/2017 RELIANCE BAR & RESTAURANT, HYDERABAD. 19.09.2014, ADMITTING AN INCOME OF RS. 4,10,870. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE A.O WAS ASKED TO PRODUCE THE BOOKS OF ACCOUNT, VOUCHERS BILL FOR EXPENSES CLAIMED UNDER DIFFERENT HEADS. THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS NOT IN A POSITION TO PRODUCE THE BOOKS OF ACCOUNT FOR THE YEAR UNDER CONSIDERATION. THE A.O THEREFORE ESTIMATED THE INCOME FROM SALE OF LIQUOR @ 5% AND INCOME FROM SALE OF FOOD ITEMS @ 10% AND BROUGHT IT TO TAX. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ORDER OF THE A.O AND THE ASSESSEE IS IN FURTHER APPEAL BEFORE US AGAINST THE BOTH ESTIMATION OF INCOME ON SALE OF LIQUOR AS WELL AS SALE ON FOOD ITEMS. 3. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE RELIED UPON VARIOUS DECISIONS OF COORDINATE BENCH OF THIS TRIBUNAL WHEREIN INCOME WAS FROM SALE OF LIQUOR WAS ESTIMATED 3% AND INCOME FROM SALE OF FOOD ITEMS WAS ESTIMATED 10%. 4. ON THE OTHER HAND, THE LD. DR, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 3 ITA.NO. 2199/HYD/2017 RELIANCE BAR & RESTAURANT, HYDERABAD. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND MATERIALS AVAILABLE ON RECORD, WE FIND THAT IN SIMILAR CIRCUMSTANCES THIS TRIBUNAL, IN NUMBER OF DECISIONS (TO WHICH BOTH OF US ARE SIGNATORIES) HAS ESTIMATED THE INCOME FROM SALE OF LIQUOR AT 3% OF COST OF GOODS PUT TO SALE, AND THE INCOME FROM SALE OF FOOD ITEMS AT 10%. THEREFORE, RESPECTFULLY FOLLOWING THE SAME, THE ASSESSEES GROUNDS OF APPEAL NO. 2 & 3 ARE ALLOWED AND THE A.O IS DIRECTED TO ESTIMATE THE INCOME ON SALE OF LIQUOR AT 3% OF THE COST OF GOODS PUT TO SALE. THE GROUND OF APPEAL NO. 4 IS REJECTED AS THIS TRIBUNAL HAS BEEN ESTIMATED THE INCOME FROM SALE OF FOOD ITEMS AT 10% AND THE CIT(A) HAS ALSO ESTIMATED THE INCOME AT 10%. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 11 TH JANUARY, 2019. SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 11 TH JANUARY, 2019 KRK 4 ITA.NO. 2199/HYD/2017 RELIANCE BAR & RESTAURANT, HYDERABAD. 1) RELIANCE BAR & RESTAURANT, 19-71/A2/1, GROUND FLOOR, RUKMINIPURAM, DR. A.S. RAO NAGAR, HYDERABAD. 2) ITO, WARD 15(4), HYDERABAD. 3) CIT(A)-7, HYDERABAD 4) PR.CIT-7, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6) GUARD FILE.