Sujatha Madhuri , Siddipet V. Income Tax Officer, Ward-1, Siddipet

ITA 375/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4011 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 04-11-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 20-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOOKAMBI KEYAN S
• Section: 143(3)

Judgement Text

ITA NO 375 OF 2019 SUJATHA MADDURI SIDDIPET. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A SMC BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.375/HYD/2019 ASSESSMENT YEAR: 2014-15 SMT. SUJATHA MADDURI SIDDIPET PAN:BGBPM4729C VS. INCOME TAX OFFICER WARD 1 SIDDIPET (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI PAWAN KUMAR GORTI REVENUE BY : SRI MOOKAMBIKEYAN S. DR DATE OF HEARING: 04/11/2019 DATE OF PRONOUNCEMENT: 11/11/2019 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2014-15 AGAIN ST THE ORDER OF THE CIT (A)-7, HYDERABAD, DATED 18.6.2 018. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, DERIVING INCOME FROM RETAIL WINE SHOP, FILED HER RETURN OF INCOME FOR THE A.Y 2014-15 ON 27.9.2014 ADMITTIN G TOTAL INCOME OF RS.8,91,000/-. DURING THE ASSESSMENT PROC EEDINGS U/S 143(3) OF THE ACT, THE ASSESSEE SUBMITTED THAT SHE IS NOT ABLE TO MAINTAIN PROPER BOOKS OF ACCOUNT AS IT IS IMPOSSIBL E TO MAINTAIN BOOKS IN SUCH BUSINESS. AO FOUND THAT MAJORITY OF T HE EXPENSES ARE NOT SUPPORTED BY PROPER VOUCHERS AND MOST OF TH E EXPENSES ARE SUPPORTED BY SELF-MADE VOUCHERS. HE THEREFORE, ESTIMATED THE INCOME OF THE ASSESSEE AT 5% OF THE COST OF GOODS P UT TO SALE. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A), WHO CONFIRMED THE ORDER OF THE AO AND THE ASSESSEE IS IN SECOND APPEAL BEFORE US. ITA NO 375 OF 2019 SUJATHA MADDURI SIDDIPET. PAGE 2 OF 3 3. AT THE OUTSET, IT IS FOUND THAT THE APPEAL IS TI ME BARRED BY 199 DAYS. THE ASSESSEE HAS FILED AN APPLICATION FOR CONDONATION OF DELAY. IN THE APPLICATION, THE ASSES SEE HAS STATED THAT THOUGH THE CIT (A)S ORDER WAS DULY SERVED ON THE ASSESSEE, HER PART-TIME ACCOUNTANT MISSED TO REPORT IT TO HER AND THE ORDER OF THE CIT (A) WAS LYING WITH OTHER PAPERS/DOCUMENT S AND IMMEDIATELY ON LOCATING THE PAPERS, SHE FILED THE A PPEAL BEFORE THE TRIBUNAL. SHE HAS FILED AN AFFIDAVIT IN SUPPORT OF THE CONTENTION AND PRAYED FOR CONDONATION OF DELAY. 4. THE LEARNED DR HOWEVER, OPPOSED THE CONDONATION STATING THAT THE ASSESSEE HAS NOT BEEN VIGILANT IN PURSUING THE APPEAL BEFORE THE CIT (A). IN SUPPORT OF HIS CONTEN TION, HE PLACED RELIANCE UPON THE DECISION OF THE BOMBAY HIGH COURT IN THE CASE OF VAMA APPARELS (INDIA) (P) LTD VS. ACIT, REPORTED IN (2019) 102 TAXMANN.COM 398 (BOMBAY). 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I OBSERVED THAT THE ASSESSEE IS AN INDIV IDUAL AND THE EXPLANATION OFFERED BY HER FOR THE DELAY IS PROBABL E AND REASONABLE. THE DECISION RELIED UPON BY THE LEARNED DR IS DISTINGUISHABLE ON FACTS, AS IN THE SAID CASE, THE DELAY WAS 507 DAYS AND IT IS THE CASE OF A COMPANY, WHEREAS IN TH E CASE BEFORE US, IT IS A CASE OF AN INDIVIDUAL WHO MAY NOT HAVE BEEN WELL VERSED WITH THE INCOME-TAX LAWS AND THE DELAY IS ONLY OF 1 99 DAYS. I FIND THAT IN THE CASE OF RETAIL WINE SHOPS, THIS TRIBUNA L HAS BEEN ESTIMATING THE INCOME AT 3% OF THE COST OF THE GOOD S PUT TO SALE. SINCE THE ISSUE ON MERITS IS IN FAVOUR OF THE ASSES SEE, I DEEM IT FIT AND PROPER TO CONDONE THE DELAY OF 199 DAYS AND DIR ECT THE AO TO ESTIMATE THE INCOME OF THE ASSESSEE AT 3% OF THE CO ST OF GOODS PUT TO SALE. ITA NO 375 OF 2019 SUJATHA MADDURI SIDDIPET. PAGE 3 OF 3 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH NOVEMBER, 2019. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 11 TH NOVEMBER, 2019. VINODAN/SPS COPY TO: 1 SMT. SUJATHA MADDURI, 1-1-380/27/B ASHOK NAGAR EX TN, JAWAHAR NAGAR, HYDERABAD 500020 2 ITO WARD-1 SIDDIPET 3 CIT (A)-7 HYDERABAD 4 PR. CIT 7 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER