Banda Goverdhan Yadav , Hyderabad V. Income Tax Officer, Ward-14(4), Hyderabad

ITA 2406/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2545 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 26-04-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 28-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 2406 /HYD/20 1 8 (ASSESSMENT YEAR : 2014 - 15 ) SHRI BANDA GOVARDHAN YADAV, HYDERABAD. PAN AGRPB 5710B ..APPELLANT. VS. I NCOME TAX OFFICER, WARD 14(4), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI S. RAMA RAO FOR SHRI T. CHAITANYA KUMAR. RESPONDENT BY : SHRI SUNIL KUMAR PANDEY (D.R.) DATE OF HEARING : 26.04. 2021. DATE OF PRONOUNCEMENT : 10 .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. 23.10.2018 PASSED IN CASE NO. 0318/2016 - 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. 2406/HYD/2018 2. IT EMERGES AT THE OUTSET THAT THE ASSESSEE'S SOLE SUBSTANTIVE GROUND CANVASSED IN THE INSTANT CASE SEEKS TO REVERSE BOTH LEARNED LOWER AUTHORITIES ACTION ESTIMATING INCOME @ 5% OF HIS RETAIL LIQUOR SALE S TO THE TU NE OF RS.11,92,78,989; COMING TO RS.59,63,949 RESULTING IN ADDITION OFRS.42,90,259. LEARNED COUNSEL RELIED ON CASE LAW OF HONBLE JURISDICTIONAL HIGH COURT DECISION IN CIT VS. SR I MEKALA BAL REDDY VIDE ORDER ITTA NOS. 28 & 29 OF 2013 DT.30.07.2013 ESTIM ATING SIMILAR ELEMENT OF LIQUOR SALES @ 3%. HE THEREFORE TERMED THE IMPUGNED ESTIMATION IS VERY MUCH ON HIGHER SIDE. 3. WE FIND NO MERIT IN ASSESSEE'S INSTANT GRIEVANCE PER SE FOR THE REASON THAT DESPITE HAVING TURNOVER OF ALMOST RS.12 CRORES, HE H AS N EITHER MAINTAINED ANY BOOKS OF ACCOUNT NOR THERE IS NO INDICATION ABOUT THE FOREGOING JUDICIAL PRECEDENTS AS TO WHETHER IT CONSIDER ED THE CORRESPONDING RETAILERS MARGIN AS PER THE EXCISE POLICY , LOCATION AND SIMILAR OTHER RELEVANT FACTORS. WE RATHER QUOTE HONORABLE JURISDICTIONAL HIGH COURT DECISION CIT VS. B R CONSTRUCTIONS (1993) 202 ITR 222 (A.P) THAT ANY DECISION NOT TAKING INTO CONSIDERATION, THE RELEVANT FACTS AS WELL AS THE CORRESPONDING STATUTORY PROVISION DOES NOT FORM A VALID PRECEDE NT. WE THUS DECLINE THE ASSESSEE'S ARGUMENT SEEKING TO PLACE RELIANCE ON THE FOREGOING CASE LAW IN PRINCIPLE. THE FACT ALSO REMAINS THAT THE ASSESSING 3 ITA NO. 2406/HYD/2018 OFFICERS IMPUGNED ESTIMATION HAS NOT TAKEN INTO CONSIDERATION THE CORRESPONDING MARKET TREND IN THE VERY LOCALITY AS WELL . WE THEREFORE DEEM IT APPROPRIATE IN VIEW OF ALL THESE FACTS AND CIRCUMSTANCES THAT A LUMP SUM ESTIMATION OF 4.5% THAN 5% IN ISSUE WOULD BE JUST AND PROPER WITH A RIDER THAT IT SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER CASE . 4. THIS ASSESSEE'S APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH JUNE , 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYD ERABAD, DT. 10 .0 6 .2021. * REDDY GP COPY TO : 1. SRI BANDA GOVARDHAN YADAV, 6 - 3 - 54, PREMNAGAR, KHAIRATABAD, HYDERABAD - 500 004 2. ITO, WARD 14(4), 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.