M/s Blue Fox Bar & Restaurant, Guntur V. The ITO, Ward-2(2), Guntur

ITA 369/VIZ/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50271 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-03-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 22-06-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N RAUL
• Section: 133A

Judgement Text

ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 1 OF 8 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.369/VIZAG/2009 ASSESSMENT YEAR: 2005 - 06 BLUE FOX BAR & RESTAURANT, GUNTUR VS. ITO WARD-2(2) GUNTUR (APPELLANT) PAN NO: AAFFB 5813 M (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI N. RAUL, CIT ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 27.02.2009 PASSED BY LEARNED CIT(A),GUNTUR AND IT R ELATES TO THE ASSESSMENT YEAR 2005-06. THE APPEAL FILED BY THE AS SESSEE IS BARRED BY LIMITATION BY 28 DAYS. THE ASSESSEE HAS MOVED A PE TITION SEEKING CONDONATION OF DELAY. HAVING REGARD TO THE SUBMISS IONS MADE THEREIN, WE CONDONE THE DELAY AND ADMIT THE APPEAL. 2. THE ASSESSEE HAS FILED REVISED GROUNDS OF APPEAL AND THE EFFECTIVE GROUNDS RAISED THEREIN READ AS UNDER: (A) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE DELETED FULLY THE ADDITION OF RS.55,35,753/- MADE BY THE ASSESSING OFFICER TOWARD S ESTIMATION OF FOOD SALES. (B) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT THE GROSS COLLECTION S AS PER IMPOUNDED MATERIAL INCLUDED FOOD SALES ALSO AND HENCE NO SEPARATE ADDITION IS WARRANTED. (C) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE ESTIMATED INCOME OF THE APPELLANT REASONABLY ON THE BASIS OF COMPARABLE CASES. ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 2 OF 8 (D) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE GIVEN CREDIT FOR RS.6,00,000/- ADDITI ONAL INCOME OFFERED IN THE HANDS OF THE PARTNER TOWARDS INCOME ON THE BASIS OF MATERIAL IMPOUNDED IN THE CA SE OF THE APPELLANT FIRM. 3. THE FACTS RELATING TO THE CASE ARE STATED IN BRIEF. THE ASSESSEE IS A PARTNERSHIP FIRM AND IS CARRYING ON THE BUSINESS OF RUNNING A RESTAURANT AND BAR. IT FILED ITS RETURN OF INCOME FOR THE YEAR UND ER CONSIDERATION ON 25.10.2005 DECLARING AN INCOME OF RS.2,15,053/-. T HE DEPARTMENT CARRIED SURVEY OPERATIONS UNDER SECTION 133A OF THE ACT AT THE BUSINESS PREMISES OF THE ASSESSEE. DURING THE COURSE OF SURVEY, CERTAIN DOCUMENTS IN THE FORM OF LOOSE SHEETS, BILL BOOKS, SCRIBBLING BOOKS, BILL SU MMARY BOOKS ETC. WERE FOUND AND THEY WERE IMPOUNDED. IN THE SCRUTINY PRO CEEDINGS, THE ASSESSEE DID NOT PRODUCE REGULAR BOOKS OF ACCOUNTS EVEN THOU GH THE ASSESSEE HAD FURNISHED THE RETURN OF INCOME ALONG WITH TAX AUDIT REPORT. HENCE THE ASSESSING OFFICER PROCEEDED TO ESTIMATE THE INCOME OF THE ASSESSEE ON THE BASIS OF FOLLOWING MATERIALS THAT WERE IMPOUNDED DU RING THE COURSE OF SURVEY OPERATION. (A) SCRIBBLING PADS NUMBERED AS A-13 AND A-20 WHICH CONTAINED THE DETAILS OF DAILY COLLECTIONS AND ALSO THE PAYME NTS MADE OUT THERE FROM FOR THE PERIOD FROM 1.4.2004 TO 31.3.2005. (B) BILL SUMMARY BOOKS FOR FOOD SALES F OR THE PERIOD FROM 17.12.2004 TO 27.12.2004. (C) BILL SUMMARY BOOKS FOR LIQUOR SALES FOR THE PE RIOD FROM 03-01- 2006 TO 17.01.2006 AND FROM 28.07.2005 TO 29-08-200 5, I.E. FOR THE YEAR SUCCEEDING TO THE YEAR UNDER CONSIDERATION. (D) BILL BOOKS FOR LIQUOR SALES FOR THE YEARS 2006 AND 2007 (I.E. SUBSEQUENT PERIODS). (E) SCRIBBLING PADS NUMBERED AS A-16 CONTAINING DA ILY COLLECTIONS PERTAINING TO THE PERIOD FALLING IN 1.4.2005 TO 31. 3.2006. (I.E. SUCCEEDING YEAR) 3.1 FOR THE YEAR UNDER CONSIDERATION, THE BILL BOOKS PERTAINING TO THE LIQUOR SALES WERE NOT FOUND. HOWEVER CERTAIN SCRI BBLING PADS CONTAINING ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 3 OF 8 THE DETAILS OF COLLECTION FOR THE WHOLE YEAR WERE F OUND. THE ASSESSEE CLAIMED THAT THE DAILY COLLECTION RECORDED IN THE S CRIBBLING PADS IS THE COMBINED TURNOVER OF BOTH LIQUOR ITEMS AND FOOD ITE MS. HOWEVER, FOR THE SUCCEEDING YEAR, THE DEPARTMENT COULD FIND LIQUOR S ALE BILL BOOKS ALONG WITH THE SCRIBBLING PADS CONTAINING DAILY COLLECTIONS. ON COMPARISON OF BOTH, IT WAS NOTICED THAT THE DAILY COLLECTION NOTED IN THAT YEAR PERTAINED TO ONLY LIQUOR SALES. BASED ON THE POSITION OBTAINING IN THE SUCCEEDING YEAR, THE ASSESSING OFFICER CAME TO THE CONCLUSION THAT THE D AILY COLLECTIONS RECORDED IN THE SCRIBBLING PADS (I.E. DOCUMENT NUMBERED AS A-13 AND A-20) FOR THE YEAR UNDER CONSIDERATION ALSO PERTAIN TO THE LI QUOR SALES ONLY. ACCORDINGLY, THE ASSESSING OFFICER REJECTED THE CLA IM OF THE ASSESSEE AND OPINED THAT THE TURNOVER PERTAINING TO FOOD SALES H AS TO BE DETERMINED SEPARATELY. 3.2 THE DEPARTMENT FOUND OUT CERTAIN SALES BILL S PERTAINING TO THE FOOD ITEMS FOR A LIMITED PERIOD OF ABOUT TEN DAYS, I.E. FOR THE PERIOD FROM 17.12.2004 TO 27.12.2004. THE ASSESSING OFFICER CO MPUTED AVERAGE AMOUNT OF DAILY SALES FOR THE ABOVE SAID PERIOD OF TEN DAYS, WHICH WORKED OUT TO RS.15,250/- PER DAY. THE ASSESSING OFFICER, BY THE METHOD OF EXTRAPOLATION, DETERMINED THE TURNOVER OF FOOD ITEM S FOR THE WHOLE YEAR AT RS.55,33,753/-. 3.3 AS ALREADY STATED THAT THE DAILY COLLECTION S FOUND RECORDED IN THE SCRIBBLING PADS WERE TAKEN AS THE TURNOVER OF THE L IQUOR SALES. ACCORDINGLY THE SUM TOTAL OF THE DAILY COLLECTIONS AMOUNTING TO RS.1,53,68,405/-, AFTER MAKING CERTAIN ADJUSTMENTS, WAS TAKEN AS THE TURNOV ER OF LIQUOR ITEMS. 3.4 THE ASSESSING OFFICER, THERE AFTER, PROCEED ED TO ARRIVE AT THE INCOME OF THE ASSESSEE. HOWEVER HE ALLOWED DEDUCTION OF O NLY CERTAIN EXPENSES. THOSE EXPENSES WERE TAKEN OUT PARTLY FROM THE PROFI T AND LOSS ACCOUNT FILED BY THE ASSESSEE ALONG WITH THE RETURN OF INCOME AND PARTLY FROM THE NOTINGS MADE IN THE SCRIBBLING PADS. IN THIS PROCESS, THE ASSESSING OFFICER DETERMINED THE NET PROFIT OF THE ASSESSEE FOR THE Y EAR UNDER CONSIDERATION ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 4 OF 8 AT RS.1,03,43,969/-. THE ASSESSEE CARRIED THE MATT ER IN APPEAL BEFORE THE LEARNED CIT (A) AND THE FIRST APPELLATE AUTHORITY A LLOWED DEDUCTION OF CERTAIN MORE EXPENSES, GAVE SLIGHT REDUCTION IN THE TURNOVER OF BOTH LIQUOR SALES AND FOOD SALES. THUS THE LEARNED CIT(A) DETE RMINED THE NET INCOME OF THE ASSESSEE AT RS.46,87,311/-. WHILE DOING SO, THE LEARNED CIT(A) DETERMINED THE TURNOVER OF LIQUOR ITEMS AT RS.1,50, 47,329/- AND THE TURNOVER OF FOOD ITEMS AT RS.53,26,125/-. IN EFFEC T, THE LEARNED CIT(A) ALSO HELD THAT THE DAILY COLLECTIONS RECORDED IN THE SCR IBBLING PADS PERTAIN TO LIQUOR SALES ONLY. 4. BEFORE THE LEARNED CIT (A), THE ASSESSEE REITE RATED THAT THE TURN OVER RECORDED IN THE SCRIBBLING PADS IS THE COMBINED TUR NOVER OF BOTH LIQUOR ITEMS AND FOOD ITEMS. IN SUPPORT THIS CONTENTION, TH E ASSESSEE SUBMITTED THAT IT COULD SELL LIQUOR ITEMS ONLY AT THE RATE FI XED BY THE GOVERNMENT, WHICH IS PURCHASE PRICE PLUS A MARGIN OF 30% ON TH E PURCHASE VALUE. THE TOTAL VALUE OF PURCHASES MADE DURING THE YEAR UNDER CONSIDERATION WAS RS. 91,77,997/- AND HENCE IT WAS CONTENDED THAT THE TOT AL TURNOVER OF LIQUOR ITEMS CAN NOT EXCEED RS.1,19,31,397/-. ACCORDINGLY IT WAS CONTENDED THAT THE BALANCE AMOUNT OF DAILY COLLECTIONS REPRESENTS TURNOVER PERTAINING TO FOOD SALES. HOWEVER, THE LEARNED CIT (A) DID NOT AC CEPT THE CONTENTIONS OF THE ASSESSEE FOR THE FOLLOWING REASONS: (A) IN THE SUCCEEDING FINANCIAL YEAR, THE NOTINGS MA DE IN THE SCRIBBLING PADS PERTAIN TO SALE VALUE OF LIQUORS ON LY AS EVIDENCED BY THE BILL BOOKS AND BILL SUMMARY. (B) THE ASSESSEE HAS RECORDED COLLECTION OF RS.9000 /- ONLY ON 18- 12-2004. HOWEVER, THE FOOD SALES ON THAT DAY WAS RS.14,060/- AS PER THE BILL BOOKS OF THAT DAY. HENC E THE DAILY COLLECTIONS RECORDED IN THE SCRIBBLING PADS COULD O NLY BE THAT OF LIQUOR SALES ONLY. (C) IF THE TURNOVER OF FOOD ITEMS AS WORKED OUT BY T HE ASSESSING OFFICER IS DEDUCTED FROM THE AGGREGATE VALUE OF DAI LY COLLECTIONS, THEN THE TURNOVER OF LIQUOR SALES WORK OUT TO RS.1.00 CRORE WHICH IS LESS THAN THE TURNOVER CLAIM ED BY THE ASSESSEE. (D) THE LIQUOR IS SOLD IN THE BAR IN PEG MEASURES. IN THAT CASE THE PROFIT ON SALE OF LIQUOR SHOULD BE MORE. (E) IN THE SUCCEEDING YEAR, THE ASSESSEE WAS GIVEN D EDUCTION TOWARDS UNRECORDED PURCHASES. DURING THE YEAR UNDER ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 5 OF 8 CONSIDERATION, NO SUCH REQUEST WAS MADE BY THE ASSE SSEE, EVEN THOUGH THERE IS A VERY DISTINCT POSSIBILITY TH AT THE ASSESSEE WAS MAKING UNRECORDED PURCHASES. AGGRIEVED BY THE ORDER OF LEARNED CIT(A), THE ASSES SEE IS IN APPEAL BEFORE US. 5. THE LEARNED AUTHORISED REPRESENTATIVE CONTENDED THAT THE METHOD OF RECORDING OF COLLECTIONS FOLLOWED IN THE SUCCEEDING YEAR CANNOT BE TAKEN AS THE BASIS FOR DETERMINING THE NATURE OF DAILY COLLE CTIONS RECORDED IN THE YEAR UNDER CONSIDERATION FOR THE REASONS THAT THE ASSESS MENT OF INCOME OF EACH YEAR IS DISTINCT AND THAT THERE IS NO NECESSITY FOR THE ASSESSEE TO FOLLOW THE SAME METHOD EVERY YEAR. THE SCRIBBLING PADS FOUND DURING THE COURSE OF SURVEY IS CONTAINING RECEIPTS AND PAYMENTS OF CASH WITHOUT ANY DESCRIPTIONS AND HENCE THE CLAIM OF THE ASSESSEE THAT THEY REPRE SENT COMBINED SALES OF BOTH LIQUOR ITEMS AND FOOD ITEMS CANNOT BE REJECTED WITH OUT BRINGING ON RECORD ANY OTHER CREDIBLE EVIDENCE. THE VERY FACT THAT THE AGGREGATE AMOUNT OF DAILY COLLECTIONS EXCEEDS THE MAXIMUM POS SIBLE TURNOVER OF LIQUOR ITEMS CLEARLY SUGGEST THAT THE SAID DAILY CO LLECTIONS CONSIST OF COMBINED TURNOVER ONLY. THE LEARNED CIT (A) IS NOT CORRECT IN TAKING THE TURNOVER OF FOOD SALES AS WORKED OUT BY THE ASSESSI NG OFFICER AS CORRECT IN ORDER TO ARRIVE AT THE LIQUOR SALES BY WAY OF BACK WORKING. THERE IS ALSO NO EVIDENCE TO PROVE THAT THE LIQUOR SOLD BY WAY OF PE G MEASURE WAS CHARGED AT MORE THAN RETAIL PRICE. ACCORDINGLY THE LEARNED AUTHORISED REPRESENTATIVE CONTENDED THAT THE TAX AUTHORITIES H AVE DETERMINED THE TURNOVER OF LIQUOR SALES AND FOOD SALES MERELY ON P RESUMPTIONS AND SURMISES. ACCORDINGLY THE LEARNED AUTHORISED REPRE SENTATIVE SUBMITTED THAT THE ANNUAL TURNOVER OF LIQUOR ITEMS SHOULD BE TAKEN AT RS.1,19,34,396/- AND THE BALANCE AMOUNT SHOULD BE TAKEN AS THE ANNUA L TURNOVER OF FOOD ITEMS. HENCE THERE IS NO NECESSITY TO ESTIMATE THE TURNOVER OF FOOD SALES SEPARATELY. 6. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPR ESENTATIVE SUBMITTED THAT THE DOCUMENTS PERTAINING TO THE SUCC EEDING YEAR CLEARLY SHOW THAT THE SALES RECORDED IN THE SCRIBBLING PADS PERTAINING TO LIQUOR SALES ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 6 OF 8 ONLY. ACCORDINGLY HE CONTENDED THAT IT IS QUITE REA SONABLE TO INFER THAT THE VERY SAME SYSTEM WAS FOLLOWED DURING THE YEAR UNDER CONSIDERATION ALSO. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE RECORD. THE MAIN ISSUE PERTAINS TO THE DETERMINATI ON OF TURNOVER OF LIQUOR ITEMS AND FOODS ITEMS FOR THE YEAR UNDER CONSIDERAT ION. THE UNDISPUTED FACT IS THAT THE BILL BOOKS PERTAINING TO THE LIQUO R SALES RELATING TO THE YEAR UNDER CONSIDERATION WERE NOT FOUND OUT DURING THE C OURSE OF SURVEY. HENCE, STRICTLY THERE IS NO EVIDENCE TO SUGGEST THA T THE DAILY COLLECTIONS RECORDED IN THE SCRIBBLING PADS OF THE INSTANT YEAR PERTAIN TO LIQUOR SALES ONLY. HOWEVER, THE TAX AUTHORITIES HAVE DRAWN SUCH AN INFERENCE ON THE BASIS OF DOCUMENTS PERTAINING TO THE SUCCEEDING YEA R. HOWEVER, ACCORDING TO THE ASSESSEE, THE DAILY COLLECTIONS RECORDED IN THE SCRIBBLING PADS RELATING TO THE INSTANT YEAR REPRESENT COMBINED TURNOVER OF BOTH LIQUOR ITEMS AND FOOD ITEMS. 7.1 WITH REGARD TO THE SALE OF LIQUOR ITEMS, THE CO NTENTION OF THE ASSESSEE IS THAT THE TURNOVER OF LIQUOR ITEMS CANNO T EXCEED RS.1,19,31,396/- I.E. PURCHASE PRICE OF LIQUOR + 30 % MARGIN, AS THE SELLING PRICE OF LIQUOR IS FIXED BY THE GOVERNMENT. THE S AID CLAIM OF THE ASSESSEE WAS REJECTED BY THE TAX AUTHORITIES ON THE BASIS OF CERTAIN INFERENCES DRAWN ON THE BASIS OF CERTAIN DOCUMENTS PERTAINING TO THE SUCCEEDING YEAR. HOWEVER, THE FACTS REMAINS THAT THERE IS NO EVIDENC E TO SUGGEST THAT THE ASSESSEE WAS SELLING LIQUORS AT A PRICE HIGHER THAN THAT FIXED BY THE GOVERNMENT. ANOTHER CRUCIAL POINT IS THAT, EVEN TH OUGH THE TURNOVER OF LIQUOR ITEMS IN THE SUCCEEDING YEAR WAS MORE THAN T HE MAXIMUM POSSIBLE TURNOVER THAT WAS ARRIVED ON THE BASIS OF SELLING R ATES FIXED BY THE GOVERNMENT, YET THE DEPARTMENT HAS ACCEPTED THE CL AIM OF THE ASSESSEE THAT THE EXCESS SALES REPRESENTS SALES MADE OUT OF UNRECORDED PURCHASES. ACCORDINGLY A DEDUCTION WAS ALLOWED IN THAT YEAR FO R THE VALUE OF UNRECORDED PURCHASES. HOWEVER, THE TAX AUTHORITIES HAVE NOT GIVEN SUCH A FINDING IN THE INSTANT YEAR NOR ANY EVIDENCE SUGGES TING ANY UNRECORDED PURCHASES OF LIQUORS WAS FOUND. THE TAX AUTHORITIE S HAVE FURTHER STATED ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 7 OF 8 THAT THE PROFIT MARGIN WILL BE MORE IN RESPECT OF L IQUOR SOLD IN PEG MEASURES. HOWEVER, AS CONTENDED BY THE ASSESSEE, T HERE IS NO EVIDENCE IN SUPPORT OF SUCH AN INFERENCE. FURTHER THE TAX AUTH ORITIES HAVE NOT FOUND ANY MATERIAL TO IDENTIFY THE QUANTITY OF LIQUOR SOL D IN PEG MEASURES. IN VIEW OF THE FOREGOING DISCUSSIONS, IN THE ABSENCE OF ANY OTHER EVIDENCE, WE ARE OF THE VIEW THAT THE TURNOVER OF THE LIQUOR ITEMS F OR THE INSTANT YEAR SHOULD BE TAKEN AS RS.1,19,31,196/- ONLY. THE AGGREGATE A MOUNT OF DAILY COLLECTIONS WAS DETERMINED BY THE LEARNED CIT(A) AT RS.1,50,47,329/-. ACCORDINGLY THE BALANCE AMOUNT IN EXCESS OF THE TUR NOVER OF LIQUOR SALES DETERMINED ABOVE SHOULD BE TAKEN AS PART OF TURNOVE R OF FOOD ITEMS. 8. WITH REGARD TO THE TURNOVER OF FOOD SALES, TH E ONLY RECORD FOUND OUT WAS THE BILL BOOKS PERTAINING TO A PERIOD OF TEN DA YS. WITH REGARD TO THE LIQUOR SALES, EVIDENCES IN THE FORM OF PURCHASES AND ALSO THE SELLING RATES WERE AVAILABLE AND HENCE THE TURNOVER OF LIQUOR COU LD BE WORKED OUT. HOWEVER, IN RESPECT OF SALE OF FOOD ITEMS, NO OTHER CREDIBLE EVIDENCE WAS FOUND OUT OR PRODUCED BY THE ASSESSEE. THERE CANNO T BE ANY DOUBT THAT IT IS THE RESPONSIBILITY OF THE ASSESSEE TO PROVE ITS CLAIM THAT THE TURNOVER OF FOOD ITEMS HAS ALREADY BEEN INCLUDED FULLY IN THE D AILY COLLECTIONS RECORDED IN THE SCRIBBLING PADS. HOWEVER, AS POINTED OUT BY LEARNED CIT(A), THERE WAS OMISSION OF SALE VALUE OF FOOD ITEMS ON 18-12-2 004, I.E. OUT OF BILL BOOKS PERTAINING TO TEN DAYS. THOUGH IT IS A SINGL E TRANSACTION, YET IT CONSTITUTES A GOOD EVIDENCE TO SUGGEST THAT THE ASS ESSEE IS NOT RECORDING TURNOVER OF FOOD ITEMS FULLY IN THE SCRIBBLING PADS . THE LEARNED CIT(A) HAS DETERMINED THE TURNOVER OF FOOD ITEMS AT RS.53,26,1 25/-. IN THE ABSENCE OF ANY OTHER EVIDENCE, WE ARE OF THE VIEW THAT THE TUR NOVER OF FOOD ITEMS AS DETERMINED BY THE LEARNED CIT(A) SHOULD BE TAKEN AS REASONABLE ESTIMATE. 9. ACCORDINGLY, THE TURNOVER OF LIQUOR ITEMS SH OULD BE TAKEN AS RS.1,19,31,396/- AND THE TURNOVER OF FOOD ITEMS SH OULD BE TAKEN AS RS.53,26,125/-. ACCORDINGLY WE DIRECT THE ASSESSIN G OFFICER TO SUBSTITUTE THESE TURNOVERS IN THE PROFIT AND LOSS ACCOUNT PREP ARED BY LEARNED CIT(A) AND DETERMINE THE INCOME OF THE ASSESSEE ACCORDINGL Y. ITA NO 369 OF 2009 OF BLUE FOX BAR & RESTAURANT GUN TUR PAGE 8 OF 8 10. THOUGH THE ASSESSEE HAS RAISED A GROUND SEE KING SET OFF OF RS.6.00 LAKHS OFFERED IN THE HANDS OF PARTNERS, YET NO EVID ENCE WAS PRODUCED BEFORE US TO SUGGEST THAT THERE EXISTED ANY NEXUS B ETWEEN SUCH OFFER AND THE INCOME OF THE ASSESSEE. IN ANY CASE, THE ASSES SEE AND ITS PARTNER ARE DIFFERENT ENTITIES AND HENCE WE DO NOT FIND ANY MER IT IN SUCH A CLAIM. 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 22 ND JUNE, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:22-06-2011 COPY TO 1 M/S BLUE FOX BAR & RESTAURANT, 6 TH & 7 TH LANE, ARUNDELPET, GUNTUR 522002 2 THE ITO WARD - 2(2) GUNTUR 3 4. THE CIT GUNTUR THE CIT(A), GUNTUR 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM