THE ITO, WARD - 2(3), Vijayawada V. Shri Musunuru Chandrasekhar Rao, Vijayawada

ITA 283/VIZ/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0207 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A NARAYANA RAO
• Keywords: Rejection of books of accounts
• Section: 143(3)

Judgement Text

ITA NO.283/VIZAG/2013 MUSUNURU CHANDRASEKHAR RAO, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . . . . , ,, , . . . . , , , , % % % % BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER . .. ./ // / I.T.A.NO.283/VIZAG/2013 ( / ASSESSMENT YEAR : 2009-10 ) ITO WARD-2(3) VIJAYAWADA VS. SHRI MUSUNURU CHANDRASEKHAR RAO, VIJAYAWADA [ PAN: AGEPM0447K] (, , , , / APPELLANT) (-., -., -., -., / RESPONDENT ) , / / APPELLANT BY : SHRI A. NARAYANA RAO, DR -., / / RESPONDENT BY : SHRI C. SUBRAHMANYAM, AR / 3 / DATE OF HEARING : 17.11.2015 / 3 / DATE OF PRONOUNCEMENT : 27.11.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER OF THE CIT(A), VIJAYAWADA FOR THE ASSESSMENT YEAR 2009-10. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONST RUCTION AND SALE OF FLATS. HE FILED A RETURN OF INCOME BY ADMITTING TOTAL INCOME OF ITA NO.283/VIZAG/2013 MUSUNURU CHANDRASEKHAR RAO, VIJAYAWADA 2 RS.6,34,572/-. THE RETURN FILED BY THE ASSESSEE WA S PROCESSED U/S 143(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CAL LED AS THE ACT). SUBSEQUENTLY AFTER DUE PROCESS, THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT. IN THE ASSESSMENT ORDER, THE AO HAS OBSERVED THAT BILLS/VOUCHERS PRODUCED BY THE ASSESSEE FOR THE EXP ENSES CLAIMED NOT COMPLETE AND MOST OF THEM ARE SELF MADE VOUCHERS, W HICH ARE NOT SUSCEPTIBLE FOR VERIFICATION OF ITS GENUINENESS. I N THE ABSENCE OF PROPER VOUCHERS FOR THE EXPENSES CLAIMED, IT WOULD BE DIFF ICULT TO ARRIVE AT THE TRUE INCOME EARNED BY THE ASSESSEE. THEREFORE, AO HAS REJECTED THE BOOKS OF ACCOUNTS AND ESTIMATED PROFITS AT 12.5% OF THE TOTAL RECEIPTS. ACCORDINGLY, ASSESSMENT IS COMPLETED. ON APPEAL, T HE LD. CIT(A) DELETED THE ADDITION MADE BY THE AO BY OBSERVING TH AT NORMAL ESTIMATION ADOPTED IN THE CASE OF REAL ESTATE TRANS ACTIONS IS 8% ONLY, WHEREAS AO HAS ADOPTED 12.5% WHICH IS HARSH AND ON A VERY HIGHER SIDE, WITHOUT GIVING ANY REASONS AS TO WHY SUCH PER CENTAGE IS ADOPTED. ACCORDINGLY, THE LD. CIT(A) DIRECTED TO ADOPT THE R ATE AT 8% INSTEAD OF 12.5% BY THE AO. 3. WE HAVE HEARD BOTH THE PARTIES PERUSED THE RECORD S AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. AFTER HEARING BOTH THE SIDES, WE FIND THAT IF PROFIT IS ESTIMATED @ 9%, IT MEETS THE ENDS OF ITA NO.283/VIZAG/2013 MUSUNURU CHANDRASEKHAR RAO, VIJAYAWADA 3 JUSTICE. ACCORDINGLY, WE MODIFY THE ORDER PASSED B Y THE CIT(A) AND DIRECT THE AO TO ESTIMATE @ 9% OF THE PROFITS INSTE AD OF 12.5%. ACCORDINGLY, APPEAL FILED BY THE REVENUE IS PARTLY ALLOWED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S PARTLY ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 27 TH NOV15. SD/- SD/- ( (( ( . . . . ) ) ) ) ( (( ( . .. . ) )) ) ( (( ( G. MANJUNATHA) ( (( ( V. DURGA RAO ) )) ) / // / ACCOUNTANT MEMBER / // / JUDICIAL MEMBER /VISAKHAPATNAM: 6 / DATED : 27.11.2015 VG/SPS / - 7 / COPY OF THE ORDER FORWARDED TO :8 1. , / THE APPELLANT THE ITO WARD-2(3), VIJAYAWADA 2. -., / THE RESPONDENT SHRI MUSUNURU CHANDRASEKHAR RAO, PLOT NO.15, OPP VINAYAKA THEATRE, ROAD NO.8, BHARATHI NAGAR, VIJAYA WADA 3. : / THE CIT, VIJAYAWADA 4. : () / THE CIT(A), VIJAYAWADA 5. -, , / // / DR, ITAT, VISAKHAPATNAM 6 . . . . / GUARD FILE / BY ORDER // TRUE COPY // @A ( SR.PRIVATE SECRETARY ) , / // / ITAT, VISAKHAPATNAM