Karanam Srinivasu, Visakhapatnam V. The ITO, Visakhapatnam

ITA 336/VIZ/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2999 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 01-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C DAS
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 336 / VIZ /201 6 (ASST. YEAR : 20 07 - 0 8 ) KARANAM SRINIVASU, D.NO. 13 - 11 - 8/1, SRIVARALAKSHMI NIVAS, B.C. ROAD, NEW GAJUWAKA, VISAKHAPATNAM. V S . IT O , WARD - 5 ( 2 ), VISAKHAPATNAM. PAN NO. AGXPK 9243 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI K.C. DAS SR. DR DATE OF HEARING : 07 / 0 8 /201 8 . DATE OF PRONOUNCEMENT : 17 / 08 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2 , VISAKHAPATNAM , DATED 27 /0 5 /201 6 FOR THE ASSESSMENT YEAR 200 7 - 0 8 . 2. THE ONLY SURVIVING GROUNDS IN THIS APPEAL ARE GROUND NOS. 4 & 6 AND THE REMAINING GROUNDS ARE NOT PRESSED BY THE ASSESSEES COUNSEL , THEREFORE, SAME ARE DISMISSED. 3 . GROUND NO. 4 RELATING TO PARTLY SUSTENANCE OF ADDITION TOWARDS ESTIMATION OF BUSINESS INCOME. 2 ITA NO. 336/VIZ/2016 ( KARANAM SRINIVASU ) 4 . FACTS OF THIS ISSUE IN BRIEF ARE THAT ASSESSEE IS AN INDIVIDUAL , IN THE BUSINESS OF MANUFACTURING SHEET METAL ITEMS. THE ASSESSEE FILED RETURN OF INCOME ADMITTING TOTAL INCOME OF RS. 1,13,978/ - . IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS NOTED THAT DURING THE COURSE OF SCRUTINY PROCEEDINGS, THE STATEMENTS OF BANK ACCOUNTS HELD BY THE ASSESSEE DURING YEAR UNDER CONSIDERATION HAVE BEEN OBTAINED AND EXAMINED . ON VERIFICATION OF STATEMENT OF ING VYSYA BANK ACCOUNT , IT WAS FOUND THAT THERE WERE TOTAL DEPOSITS OF RS. 36,86,864.83 PS. OUT OF WHICH , SB INTERESTS WERE AT RS. 18.83 PS. , AND DEPOSITS ON ACCOUNT OF CHEQUE/ATM REVERSALS WERE QUANTIFIED AS RS. 5,17,241/ - . THEREFORE, ON DEDUCTION OF THE ABOVE AMOUNTS , THE BALANCE AMOUNT WAS AT RS. 31,69,605/ - . WHEN THE ASSESSEE WAS REQUESTED TO EXPLAIN S OUR C E FOR THE SAME, HE ADMITTED THEM AS OUT OF THE SALES/TURNOVER MADE FROM HIS BUSINESS ACTIVITY . SIMILARLY, ON VERIFICATION OF ANDHRA BANK ACCOUNT, THERE WERE TOTAL CREDITS OF RS. 2,55,222/ - (EXCLUDING SB INTEREST OF RS. 14/ - AND OPENING BALANCE OF RS. 56/ - ). WHEN THE ASSESSEE WAS REQUESTED TO EXPLAIN SOURCES FOR THE SAME, HE ADMITTED THEM ALSO AS OUT OF THE SALES / TURNOVER MADE FROM HIS BUSINESS ACTIVITY. KEEPING IN V I EW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE , AS THE ASSESSEE HAS NOT PRODUCED ANY 3 ITA NO. 336/VIZ/2016 ( KARANAM SRINIVASU ) BOOKS OF ACCOUNT , BILLS, VOUCHERS ETC., THE INCOME IS ESTIMATED AT 15% ON THE TOTAL CREDITS MADE TO THE BANK ACCOUNTS . 5. ON APPEAL BEFORE THE LD. CIT(A), NONE APPEARED ON BEHALF OF THE ASSESSEE, HOWEVER, LD. CIT(A) C ONSIDERED THE ISSUE ON MERITS AND THE INCOME ESTIMATED HAS SCALED DOWN FROM 15% TO 10% AND DIRECTED THE ASSESSING OFFICER ACCORDINGLY. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMI SSED. 6 . SO FAR AS G ROUND NO.6 RAISED BY THE ASSESSEE RELATES TO TELESCOPING BENEFIT, LD . COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT LD. CIT(A) OUGHT TO HAVE BEEN GRANTED TELESCOPING BENEFIT TO THE ASSESSEE. THE ASSESSEE NEITHER APPEARED BEFORE THE LD. CIT(A) NOR FILED ANY DETAILS. EVEN BEFORE US, THE LD. CO U NSEL FOR THE ASSESSEE IS NOT ABLE TO ESTABLISH AS TO HOW TELESCOPING BENEFIT CAN BE GRANTED TO THE ASSESSEE. THEREFORE, REQUEST MADE BY THE LD. COUNSEL FOR THE ASSESSEE IS REJECTED . 7 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 7 T H DAY OF AUGUST , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 7 T H AUGUST , 201 8 . 4 ITA NO. 336/VIZ/2016 ( KARANAM SRINIVASU ) VR/ - COPY TO: 1. THE ASSESSEE KARANAM SRINIVASU, D.NO. 13 - 11 - 8/1, SRIVARALAKSHMI NIVAS, B.C. ROAD, NEW GAJUWAKA, VISAKHAPATNAM. 2. THE REVENUE ITO, WARD - 5(2), VISAKHAPATNAM. 3. THE CIT - 2, VISAKHAPATNAM. 4. THE CIT(A) - 2, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.