Venkateshwara Traders, Ranga Reddy V. Income Tax Officer, Ward-9(1), Hyderabad

ITA 300/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1568 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-02-2021
• Assessment Year: 2017-2018
• Appeal Filed On: 12-06-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: TOTA SUBRAMANYAM
• Section: 201; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER IT A NO. 300 /H/20 20 ASSESSMENT YEAR: 20 1 7 - 18 VENKATESWARA TRADERS, RANGA REDDY. PAN AALFV 6380K VS. INCOME - TAX OFFICER, WARD 9 ( 1 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: NONE REVENUE BY: SHRI TOTA SUBRAMANYAM DATE OF HEARING: 04 /0 2 /2021 DATE OF PRONOUNCEMENT: 15 /0 2 /2021 O R D E R T H IS ASSESSEE S APPEAL FOR AY 201 7 - 18 IS DIRECTED AGAINST THE C I T(A) - 7 , HYDERABAD S ORDER DATED 3 0 / 0 1 / 20 20 PASSED IN CASE NO. 0145 /CIT(A) /2019 - 20 INVOLVING PROCEEDINGS U/S 1 4 4 OF THE INCOME TAX ACT , 1961 ; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARED AT ASSESSEES BEHEST. THEREFORE, I PROCEED TO DISPOSE OF THIS APPEAL EX - PARTE AFTER I TA NO. 300 /HYD/ 2020 VENKATESWARA TRADERS, RANGA REDDY. : - 2 - : HEARING LEARNED DR AS WELL AS AFTER TAKING NOTE OF THE FACTS AVAILABLE ON RECORD. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT BOTH THE LOWER AUTHORITIES HAVE TREATED ASSESSEE S CASH DEPOSITS OF RS. 10,50,000/ - AS ASSESSABLE U/S 115BBE OF THE ACT FOLLOWED BY 5% ESTIMATION OF INCOME FOR HIS ALLEGED RECEIPTS OF RS. 24,94,326/ - ; RESULTING IN ADDITION OF RS. 1,49,659/ - ; RESPECTIVELY. LEARNED DR FAILS TO DISPUTE THAT ASSESSEE FIRM IS ALREADY IN REGULAR BUSINESS CHARCOAL SUPPLY DURING THE RELEVANT PREVIOUS YEAR; M EANING THEREBY THAT THE LOWER AUTHORITIES HAVE NOT GIVEN ANY BENEFIT OF THE CASH IN HAND AGAINST TH E DEPOSIT IN ISSUE. T HE A SSESSING O FFICER HAS ALSO NOT DISCUSSED ANY MARKET COMPARABLE IN CHARCOAL SUPPLY BUSINESS BEFORE ARRIVING THE IMPUGNED PROFIT. TAKING INTO ALL THESE FACTS AND CIRCUMSTANCES, I HOLD THAT A LUMPSUM ADDITION OF RS. 8 LAKHS IN THE FORMER HEAD ; AFTER GIVING CREDIT OF THE ALLEGED CASH IN HAND AS BUSINESS RECEIP TS AND RS. 75,000/ - REPRESENTING PROFIT ELEMENT ; RESPECTIVELY WOULD BE FAIR AND PROPER WITH A RIDER THAT THE I TA NO. 300 /HYD/ 2020 VENKATESWARA TRADERS, RANGA REDDY. : - 3 - : SAME SHALL NOT BE TREATED AS PRECEDENT IN ANY OTHER CASE OR ASSESSMENT YEAR; AS THE CASE MAY BE. 3. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY , 2021 . SD/ - ( S.S. GODARA ) JUDICIAL MEMBER HYDE RABAD, DATED : 15 TH FEBRUARY , 20 2 1 . K V C OPY TO : 1 VENKATESWARA TRADERS, SURVEY NO. 96 , NEAR KATTAMYSAMMA TE MPL E , TURKAYAMZAL, HAYAT NAGAR, RA NGA REDDY, HYDERABAD 500 0 60 2 ITO, WARD 9 ( 1 ), HYDERABAD. 3 C I T(A) 7 , HYDERABAD. 4 PR. CIT - 7 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.