Avula Sreedhara Reddy , Hyderabad V. Income Tax Officer, Ward-1, Hyderabad

ITA 373/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1564 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 12 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: 2015-2016
• Appeal Filed On: 03-07-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Business income; Business expenditure
• Section: 201; 13; 20

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. 373 /H/20 20 ASSESSMENT YEAR: 20 1 5 - 16 AVULA SREEDHAR REDDY, HYDERABAD. PAN AHBPA 7145C VS. INCOME - TAX OFFICER, WARD 1 , NELLORE (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 5 - 1 6 IS DIRECTED AGAINST THE C I T(A) , TIRUPATI S ORDER DATED 13 / 0 2 / 20 20 PASSED IN CASE NO. CIT(A) ,TIRUPATI/10183/2017 - 18 INVOLVING PROCEEDINGS U/S 1 4 3(3) 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. 373 /HYD/ 2020 AVULA SREEDHAR REDDY, HYD. : - 2 - : HEARING LEARNED DR AS WELL AS GOING THROUGH FACTS AVAILABLE ON RECORD. 2. AFTER HEARING LEARNED DR AT LENGTH, I NOTICE THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS TREATING A SSESSEES RECEIPTS TOWARDS ALLEGED CAR RENTALS OF RS. 19,98,570/ - AND INTEREST INCOME OF RS. 6,02,600/ - AS INCOME FROM OTHER SOURCES DURING THE COURSE OF ASSESSMENT AS AFFIRMED IN THE CIT(A)S ORDER. MR. SUBRAMANYAM FAILS TO DISPUTE THE CLINCHING FACT TH AT THE ASSESSEE HAS NOT CARRIED OUT ANY OTHER BUSINESS ACTIVITY EXCEPT RUNNING CARS ON HIRE. M EANING THEREBY THAT IT CAN BE SAFELY PRESUMED THAT THE IMPUGNED RECEIPT OF RS. 19,98,570/ - REPRESENTED BUSINESS INCOME FROM CAR RUNNING ACTIVITY ONLY. I OBSERVE I N THIS BACKDROP THAT THE SAID BUSINESS MUST HAVE SEEN CORRESPONDING DIRECT AND INDIRECT BUSINESS EXPENDITURE AS WELL. I THEREFORE DEEM IT PROPER TO RESTRICT A LUMPSUM PROFIT ELEMENT OF RS. 2 LAKHS OUT OF RS. 19,98,570/ - ONLY WITH A RIDER THAT THE SAME SHALL NOT BE TAKEN AS PRECEDENT IN OTHER AYS. THE A SSESSEE GETS RELIEF OF I TA NO. 373 /HYD/ 2020 AVULA SREEDHAR REDDY, HYD. : - 3 - : RS. 17,98,570 / - THEREFORE . NECESSARY COMPUTATION TO FOLLOW AS PER LAW. 3. COMING TO THE INTEREST INCOME, I FIND NO REASON TO INTERFERE WITH THE LOWER AUTHORITIES ACTION AS SUCH INTEREST IS ASSESSABLE UNDER LOS T HEAD OF INCOME U/S 57 ONLY. THE SAME HOWEVER IS DIRECTED TO BE COMPUTED ON NETTING BASIS AFTER TAKING INTO ACCOUNT THE CORRE SPONDING EXPENDITURE; IF ANY , IN CONSEQUENTIAL PROCEEDINGS. 4 . 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 I TA NO. 373 /HYD/ 2020 AVULA SREEDHAR REDDY, HYD. : - 4 - : C OPY TO : 1 AVULA SREEDHAR REDDY, C/O M. CHANDRA MOULESWARA RAO, C - 3, SKYLARK APTS., NEAR SKYLINE THEATRE, BASHEERBAGH, HYDERABAD 500 029 2 ITO, WARD 1 , NELLORE 3 C I T(A) , TIRUPATI 4 PR. CIT , TIRUPATI 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.