Golla Naga Seshulu, Kurnool, Kurnool V. ITO, Ward-1, Kurnool, Kurnool

ITA 400/HYD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6355 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 24-03-2016
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Assessee Lawyers: B SATYANARAYANA MURTY
• Keywords: Business income; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 400/HYD/2016 ASSESSMENT YEAR: 2011-12 GOLLA NAGA SESHULU, KURNOOL [PAN: CCNPS8764C] VS INCOME TAX OFFICER, WARD-1, KURNOOL (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI B. SATYANARAYANA MURTY, AR FOR REVENUE : SHRI K.E. SUNIL BABU, DR DATE OF HEARING : 04-07-2016 DATE OF PRONOUNCEMENT : 06-07-2016 O R D E R THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), KURNOOL, DATED 11-12-2015. 2. BRIEFLY STATED, ASSESSEE AN INDIVIDUAL AND TRADER I N CHICKEN AND EGGS ON WHOLE SALE BUSINESS, FILED RETURN OF INC OME FOR AY. 2011-12 ADMITTING AN INCOME OF RS. 2,02,500/-. THE A SSESSING OFFICER (AO) FOLLOWING THE ORDERS IN ASSESSEES OWN CASE IN EARLIER TWO YEARS, AS CONFIRMED BY LD. CIT(A), ESTIMATED THE INCOME AT 2.5% ON THE STOCK PUT FOR SALE CLEAR OF ALL EXPENSES. IN APPEAL, ASSESSEE SUBMITTED TO THE CIT(A) THAT HON'BLE ITAT IN IT A NO. I.T.A. NO. 400/HYD/2016 GOLLA NAGA SESHULU :- 2 -: 807/HYD/2014 AND ALSO IN ITA NO. 234/HYD/2015 DT. 18 -09-2015 IN ASSESSEES OWN CASE FOR AYS. 2009-10 & 2010-11, RESTORED THE MATTER TO THE AO AND ACCORDINGLY REQUESTED TO DECIDE THE APPEAL ON THE BASIS OF THE ORDER OF THE ITAT. LD. CIT(A) AFTER E XTRACTING THE PARA 3 OF THE ORDER OF ITAT IN AY. 2009-10, HOWEVER, WITHOUT ASSIGNING ANY REASONS, CONFIRMED THE AOS ORDER HOL DING THAT ESTIMATION OF INCOME AT 2.5% IS REASONABLE. 3. ASSESSEE HAS RAISED THE GROUNDS, ONE OF WHICH IS THAT LD. CIT(A) HAS NOT FOLLOWED THE DIRECTIONS OF THE ITAT GIV EN IN EARLIER YEARS. LD. COUNSEL SUBMITTED THAT MATTER MAY BE RESTORED TO THE FILE OF THE AO TO DO AFRESH AS PER THE DIRECTIONS OF IT AT GIVEN IN EARLIER YEARS. LD. DR HAS NO OBJECTION AS THE EARLIE R TWO ASSESSMENT YEARS ARE RESTORED TO THE FILE OF THE AO. 4. I HAVE CONSIDERED THE SUBMISSIONS AND PERUSED THE ORDERS ON RECORD. ITAT IN AY. 2009-10 HAS CONSIDERED THAT THERE IS NO BASIS FOR ESTIMATING THE INCOME AT 2.5%. NEITHER THE LD. CIT( A) HAVE REFERRED TO ANY COMPARABLE CASE AND NOT EVEN THE ASSES SEE HAD MADE ANY EFFORT TO BRING ON RECORD THE NET PROFIT RATES DECLARED IN THE COMPARABLE CASES. ACCORDINGLY, THE ITAT CONSIDER ED FAIR AND PROPER TO RESTORE THE ISSUE RELATING TO THE ESTIMATION OF BUSINESS INCOME OF ASSESSEE TO THE FILE OF AO FOR DECIDING THE SAME AFRESH ON THE BASIS OF THE TRADING RESULTS DECLARED IN COMPARABLE CASES. ACCORDINGLY, IN THIS IMPUGNED YEAR ALSO, I SET ASIDE THE ORDERS OF AO AND CIT(A) AND RESTORE THE MATTER TO THE FILE OF AO TO DO ACCORDINGLY. NEEDLESS TO OBSERVE THAT, AO SHALL AFFO RD PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO ASSESSEE WHIL E DECIDING THE I.T.A. NO. 400/HYD/2016 GOLLA NAGA SESHULU :- 3 -: ISSUE. IT IS ALSO CLARIFIED THAT THE NET PROFIT TO BE E STIMATED BY HIM IN NO CASE SHALL EXCEED 2.5% OF ASSESSEES TURNOVER/ SALES AS ORIGINALLY DETERMINED IN THE ASSESSMENT ORDER. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH JULY, 2016 SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 06 TH JULY, 2016 TNMM COPY TO : 1. SHRI GOLLA NAGA SESHULU, D.NO. 44-16, PRAKASH NA GAR, KURNOOL. 2. THE INCOME TAX OFFICER, WARD-1, KURNOOL. 3. COMMISSIONER OF INCOME TAX(APPEALS), KURNOOL. 4. THE PR. COMMISSIONER OF INCOME TAX, KURNOOL. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.