Shobha Paradise, Chittoor, Chittoor V. ACIT, Circle-1, Tirupathi, Tirupathi

ITA 308/HYD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6450 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 15-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M SITARAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC) : HYDERABAD BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA.NO.308/HYD/2016 ASSESSMENT YEAR 2010-2011 M/S. SHOBHA PARADISE, OTK ROAD, CHITTOOR. PAN AAIFS1461K VS. THE INCOME TAX OFFICER, WARD-1, CHITTOOR (APPELLANT) (RESPONDENT) FOR ASSESSEE : - NONE - FOR REVENUE : MR. M. SITARAM DATE OF HEARING : 16.06.2016 DATE OF PRONOUNCEMENT : 17 .06.2016 ORDER PER J. SUDHAKAR REDDY, A.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A), TIRUPATI DATED 25.01.2016 AND IT PERTAINS TO THE A.Y. 2010-2011. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUANCE OF NOTICE. THERE IS NO PETITION FO R ADJOURNMENT EITHER. UNDER THESE CIRCUMSTANCES, I DI SPOSE OF THE APPEAL EX-PARTE-QUA-THE-ASSESSEE, AFTER HEAR ING THE LD. D.R. 3. HEARD THE LD. D.R. THE A.O. IN THIS CASE, HAS ADDED AN AMOUNT OF RS.1,32,187, BEING DIFFERENCE BETWEEN THE CLOSING BALANCE IN THE BOOKS OF THE ASS ESSEE 2 ITA.NO.308/HYD/2016 M/S. SHOBHA PARADISE, OTK ROAD, CHITTOOR. AS ON 31.03.2009 AND THE BALANCE IN THE SUPPLIERS LEDGER ACCOUNT. THE ASSESSEE CONTENDS THAT HE IS FOLLOWING THE SYSTEM OF ENTERING PURCHASES ONLY WHEN THE SUPPLIER GOODS BUNDLE IS OPENED AND STOCK IS TAKEN INTO ACCO UNT. IT IS ALSO HIS CONTENTION THAT ALL THE PURCHASES HAVE BEEN ACCOUNTED FOR AND THERE IS NO OMISSION WHATSOEVER. MOREOVER, IT WAS SUBMITTED THAT SUCH DIFFERENCE WOU LD NOT RESULT IN INCOME. AN ALTERNATE SUBMISSIONS IS MADE THAT SIMILAR ADDITION MADE IN A.Y. 2009-2010 HAS TO BE TELESCOPED WITH THE ADDITION MADE DURING THIS YEAR. IT IS THE CASE OF THE LD. D.R. THAT THE ASSESSEE COULD NO T RECONCILE THE DIFFERENCE AND IN SUCH CIRCUMSTANCES, THE ADDITION IS VALID. 4. AFTER HEARING THE LD. D.R. WE DO NOT FIND MERIT IN THE ADDITION MADE BY THE A.O. MERELY BECAUSE THE RE IS A DIFFERENCE BETWEEN THE BALANCE IN THE SUPPLIERS BOOKS AND BALANCE IN THE ASSESSEES LEDGER ACCOUNT, THERE CANNOT BE AN ADDITION. IN ANY EVENT, A SIMILAR ADDI TION MADE IN THE EARLIER ASSESSMENT YEAR TO THE TUNE OF RS.3,94,016, HAS TO BE TELESCOPED. ACCORDINGLY, THI S ADDITION IS DELETED. 5. THE SECOND ISSUE IN DISPUTE IS ADHOC DISALLOWANCE OF EXPENDITURE UNDER THE HEAD ADVERTI SING, PRINTING AND PACKAGING AND GENERAL EXPENSES. 6. AFTER PERUSING THE PAPER BOOKS, I AM OF THE OPINION THAT INTEREST OF JUSTICE WOULD BE MET WHEN THE 3 ITA.NO.308/HYD/2016 M/S. SHOBHA PARADISE, OTK ROAD, CHITTOOR. DISALLOWANCE IS RESTRICTED TO RS.25,000. I ORDER ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 17.06.2016. SD/- (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER HYDERABAD, DATED 17 TH JUNE, 2016. VBP/- COPY TO 1. M/S. SHOBHA PARADISE, OTK ROAD, CHITTOOR. C/O. M/S. KGM GUPTA & CO., CHARTERED ACCOUNTANTS, 10/67, GANDHI ROAD, CHITTOOR 517 001. 2. THE INCOME TAX OFFICER, WARD - 1 , CHITTOOR. 3. CIT(A) , TIRUPATI. 4. PR. CIT, TIRUPATI 5. D.R. ITAT A (SMC) BENCH, HYDERABAD 6. GUARD FILE