Kuna Gowrishankar Goud , Secunderabad V. Income Tax Officer, Ward-10(1), Hyderabad

ITA 2333/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1451 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 18-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Assessee Lawyers: S RAMA RAO
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO S . 2333 & 2334 /HYD/201 8 (ASSESSMENT YEAR : 20 14 - 15 ) SHRI KUNA GOWRISHANKAR GOUD, SECUND ERABAD. PAN BERPG 1859K 2. SHRAVAN KUMAR GOUD KUNA, SECUNDERABAD. PAN ANOPK 6058P ..APPELLANT S . VS. INCOME TAX OFFICER, WARD 10(1), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI S. RAMA RAO. RESPONDENT BY : SHRI ROHIT MAJUMDAR. (D.R.) DATE OF HEARING : 25.05. 2021. DATE OF PRONOUNCEMENT : 29 .0 6 .2021. . O R D E R PER SHRI S.S. GODARA, J.M. : TH ESE ASSESSEE S S APPEAL S FOR ASST. YEAR 2014 - 15 ARISE FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 6 , HYDERABAD S ORDER S; BOTH DT. 24.10.2018 , PASSED IN CASE NO S . 0308/2016 - 17/A3/CIT(A) - 6 & 0307/2016 - 2 ITA NO. 2333 & 2334/HYD/2018 17/A3/CIT(A) - 6; RESPECTIVELY IN PROCEEDINGS UNDER SECTION 14 4 OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE ASSESSEES AND THE DEPARTMENT . C ASE FILE S PERUSED. 2. SINCE BOTH ASSESSEES HEREIN RAISE IDENTICAL GROUNDS, FOR THE SAKE OF CONVENIENCE AND BREVITY, WE PASS CONSOLIDATED ORDER IN THESE CASES. WE TAKE UP ITA 2333/HYD/2018 AS THE LEAD CASE . COMING TO TH IS LEAD ASSESSEE'S GRIEVANCE CHALLENGING CORRECTNESS OF BOTH THE LOWER AUTHORITIES AC TION ESTIMATING 5% OF ITS TOTAL LIQUOR SALE OF RS.8,56,33,641; COMING TO RS.42,81,682 AFTER REJECTING HIS BOOKS OF ACCOUNTS, HE HAS P LACED RELIANCE ON THE FOLLOWING DECISIONS : I) ITA NO.517/HYD/2013 (SAI CINE WINE VS. ITO) II) 1198/HYD/2015 (M/S. SA I VENKATESHWARA WINES) III) 725/HYD/2015 (VENKATESHWARA WINES) 3. WE FIND NO MERIT IN THE ASSESSEE'S STAND SINCE HE HAS NOT EVEN MAINTAIN ED BOOKS OF ACCOUNTS IN THE LIQUOR TRADING BUSINESS. THE FACT ALSO REMAINS THAT THE ASSESSING OFFICER 3 ITA NO. 2333 & 2334/HYD/2018 HAS NOT D RAWN ANY COMPARISON TO THE ASSESSEES PROFIT RATE @ 5% VIS - - VIS WITH SIMILAR OTHER COMPARABLE CASES IN THE BUSINESS OF LIQUOR TRADING. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE THAT A LUMPSUM PROFIT RATE OF 4.5% ONLY THAN THAT IN ISSUE @ 5% WOULD BE JUST AND PROPER WITH A RIDER THAT SAME SHALL NOT BE TREATED AS A PRECEDENT. NECESSARY COMPUTATION TO FOLLOW AS PER LAW IN BOTH THESE CASES . 4. LEARNED COUNSEL NEXT SOUGHT TO INVITE OUR ATTENTION TO THE LOWER AUTHORITIES ACTION REGARDING ADDITION ON ACCOUNT OF SALE OF EMPTY LIQUOR BOTTLES. WE DO NOT SEE ANY INDICATION REGARDING THE IMPUGNED ADDITION IN ASSESSING OFFICERS ASSESSMENT ORDER S DT.31.10.2016. MORE SO IN VIEW OF THE FACT THAT WE ARE DEALING WITH SEC. 144 PROCEEDINGS ONLY. THIS LATTER PLEA STANDS DECLINED THERE FORE . SAME DECISION/CONCLUSION APPLIES IN LATTER ASSESSEE'S ITA 2334/HYD/2018 AS WELL IN ABSENCE OF ANY DISTINCTION ON FACTS. 4 ITA NO. 2333 & 2334/HYD/2018 6 . THIS ASSESSEE'S APPEAL S ARE PARTLY ALLOWED IN ABOVE TERMS. A COPY OF THIS COMM ON ORDER BE PLACED IN THE RESPECTIVE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 29TH JUNE , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 29 .0 6 .2021. * REDDY GP COPY TO : 1. I) KUNA GOWRISHANKAR GOUD, 1 - 10 - 243/1, BRAHMAN WADI, BEGUMPET, SECUNDERABAD. II) SHRAVAN KUMAR GOUD KUNA, 1 - 10 - 243/1, BRAHMANWADI, BEGUMPET, SECUNDERABAD. 2. ITO, WARD 10(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.