THE ITO, Vijayawada V. Namburi Narasimha Rao,

ITA 306/VIZ/2015

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9861 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2016
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 27-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Section: 144

Judgement Text

ITA NO.306/VIZAG/2015 SRI NAMBURI NARASIMHA RAO, KANCHIKACHERA, KRISHNA D IST. 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.306/VIZAG/2015 ( / ASSESSMENT YEAR: 2012-13) ITO, WARD - 1(3), VIJAYAWADA VS. SRI NAMBURI NARASIMHA RAO, KANCHIKACHERAL, KRISHNA DIST. [PAN: AGDPN0519N ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.K. SETHI, DR / RESPONDENT BY : SHRI C. SUBRAHMANYAM, AR / DATE OF HEARING : 26.09.2016 / DATE OF PRONOUNCEMENT : 26.09.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A), VIJAYAWADA DATED 29.5.2015 FOR THE ASSESSMENT YEAR 2012-13. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIV IDUAL, ENGAGED IN THE BUSINESS ACTIVITY OF PLYING OF LORRIES AND TIPPERS FOR TRANSPORTATION OF ITA NO.306/VIZAG/2015 SRI NAMBURI NARASIMHA RAO, KANCHIKACHERA, KRISHNA D IST. 2 GOODS AS A TRANSPORT CONTRACTOR. THE ASSESSEE HAD FILED A RETURN BY DECLARING TOTAL INCOME OF RS.5,73,060/-. THE RETUR N FILED BY THE ASSESSEE WAS PROCESSED INITIALLY U/S 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT) AND THE CASE OF T HE ASSESSEE WAS SELECTED FOR SCRUTINY. THE A.O. CALLED THE ASSESSE E TO FILE HIS BOOKS OF ACCOUNTS, BILLS & VOUCHERS, CONFIRMATIONS, ACCOUNT COPIES, ETC. IN RESPONSE TO THE NOTICE ISSUED BY THE A.O., THE ASSE SSEE HAD APPEARED ALONG WITH CHARTERED ACCOUNTANT, HOWEVER, NO INFORM ATION WAS FILED AS ASKED BY THE A.O. ACCORDINGLY, THE A.O. HAS COMPLE TED THE ASSESSMENT U/S 144 OF THE ACT, BY ESTIMATING THE INCOME AT 9%. ACCORDINGLY, ASSESSMENT WAS COMPLETED. ON APPEAL, THE LD. CIT(A ) HAS SCALED DOWN THE INCOME FROM 9% TO 3% BY FOLLOWING THE DECISION OF THE ITAT HYDERABAD BENCH IN THE CASE OF M/S. SAI SWETHA TRAN SPORTS, YERRAGUNTLA VIDE ORDER IN ITA NO.1604/HYD/2012 DATED 10.5.2013. 3. AGGRIEVED, REVENUE IS IN APPEAL BEFORE THE TRIBU NAL. THE LD. D.R. STRONGLY SUPPORTED THE ORDER PASSED BY THE A.O. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE HAS RELIED ON THE ORDE R OF THE CIT(A). 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE ASSESSEE IS IN THE BUSINESS OF PLYING THE LORRIES A ND TIPPERS. WHEN THE ITA NO.306/VIZAG/2015 SRI NAMBURI NARASIMHA RAO, KANCHIKACHERA, KRISHNA D IST. 3 A.O. CALLED FOR THE DETAILS, ASSESSEE HAS NOT FILED THE SAME. ACCORDINGLY, THE A.O. HAS COMPLETED THE ASSESSMENT U/S 144 OF TH E ACT BY ESTIMATING THE PROFIT OF THE BUSINESS AT 9%. ON APPEAL, CIT(A ) HAS SCALED DOWN THE INCOME TO 3% BY FOLLOWING THE ORDER OF M/S. SAI SWETHA TRANSPORTS (SUPRA). WE FIND THAT THOUGH ASSESSEE IS DOING SIMI LAR KIND OF BUSINESS LIKE M/S. SAI SWETHA TRANSPORT, EACH CASE HAS TO BE DECIDED DEPENDING UPON THE FACTS AND CIRCUMSTANCES OF THE OTHER CASE AND ALSO DEPENDING UPON THE STYLE OF THE BUSINESS CARRIED OUT BY THE A SSESSEE. THE CIT(A) IS NOT CORRECT IN SIMPLY FOLLOWING THE DECISION OF THE ORDER OF M/S. SAI SWETHA TRANSPORTS (SUPRA), HOWEVER FOR THE ASSESSME NT YEAR 2013-14, IN THE ASSESSEES OWN CASE, THE A.O. HAS ESTIMATED PROFIT AT 5%. THE ASSESSEE HAS ACCEPTED THE ESTIMATION MADE BY THE A. O. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT ESTIMATION AT 5% IS JUSTIFIED. ACCORDINGLY, WE MOD IFIED THE ORDER OF THE CIT(A) AND PROFIT OF THE ASSESSEE IS ESTIMATED AT 5 % ON LORRY TRANSPORT BUSINESS. ACCORDINGLY, THIS APPEAL FILED BY THE RE VENUE IS PARTLY ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 26 TH SEPT16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 26.09.2016 VG/SPS ITA NO.306/VIZAG/2015 SRI NAMBURI NARASIMHA RAO, KANCHIKACHERA, KRISHNA D IST. 4 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-1(3), VIJAYAWADA 2. / THE RESPONDENT SRI NAMBURI NARASIMHA RAO, PROP : M/S. SRI VENKATESWARA SWAMY LORRY SERVICE, D.NO.8-103, NAMBU RI VARI STREET, NEAR RTC BUSSTAND, KANCHIKACHERLA-521180, KRISHNA DIST. 3. ) / THE CIT, VIJAYAWADA 4. ) ( ) / THE CIT(A), VIJAYAWADA 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM