Sataiah Molugu , Medchal Malkajgiri V. Income Tax Officer, Ward-15(4) , Hyderabad

ITA 394/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0734 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 17-07-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: TOTA SUBRAMANYAM
• Section: 144; 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. 394 /H/20 2 0 ASSESSMENT YEAR: 20 1 6 - 1 7 SATAIAH MOLUGU, MEDCHAL MALKAJGIRI P AN A SOPM3375N VS. INCOME - TAX OFFICER, WARD 1 5(4) , HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: S MT. S. SANDHYA REVENUE BY: SHRI TOTA SUBRAMANYAM DATE OF HEARING: 0 5 /0 2 /2021 DATE OF PRONOUNCEMENT: 18 /0 2 /2021 O R D E R T H IS ASSESSEE S APPEAL FOR AY 20 1 6 - 17 IS DIRECTED AGAINST THE C I T(A) - 7 HYDERABAD S ORDER DATED 26 / 11 / 20 19 PASSED IN CASE NO. 0045 / CIT(A) 7/2019 - 20 INVOLVING PROCEEDINGS U/S 1 4 4 OF THE INCOME TAX ACT , 1961 ; IN SHORT THE ACT. H EARD BOTH THE PARTIES. CASE F ILE PERUSED. 2. THE ASSESSEE S SOLE INSTANT GRIEVANCE IS THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN I TA NO. 394 /HYD/ 2020 SATAIAH MOLUGU. : - 2 - : ESTIMATING 5% OF INCOME COMPONENT ON TOTAL CASH DEPOSITS AS A RECHARGE INDEPENDENT RETAILER OF M/S BHARATHI AIRTEL LTD. LEARNED DR FAILS TO DISPUTE THE CLINCHING FACT THAT NEITHER OF THE LOWER AUTHORITIES HAS TAKEN INTO CONSIDERATION AN Y COMPARABLE IN SUCH A RETAIL BUSINESS. THE FACT ALSO REMAINS THAT ASSESSEE HAS FAILED IN PROVING OF CASH DEPOSITS AS PERTAINING TO THE SAID BUSINESS ONLY. I THEREFORE DEEM IT FIT AN D PROPER IN THESE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE THAT A LUMPSUM PROFIT RATE OF 2.5% WOULD BE JUST AND PROPER WITH A RIDER THAT THE SAME SHALL NOT BE PRECEDENT; AS THE CASE MAY BE. 5 . THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS . PRONOUNCED IN THE OPEN COURT ON 18 TH FEBRUARY , 2021 . SD / - ( S.S. GODARA ) JUDICIAL MEMBER HYDE RABAD, DATED : 18 TH FEBRUARY , 20 2 1 . K V I TA NO. 394 /HYD/ 2020 SATAIAH MOLUGU. : - 3 - : C OPY TO : 1 SATAIAH MOLUGU , 2 - 57/5, KOLTHUR VILLAGE, MC PALLY MANDAL, MEDCHAL, MEDCHAL MALKAJGIRI DISTRICT 2 IT O , WARD 1 5(4) , HYDERABAD. 3 C I T(A) 7 , HYDERABAD. 4 PR. CIT 7 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.