The DCIT, Circle-3(1), Range-3, Visakhapatnam V. Sri D N Raju, Visakhapatnam

ITA 404/VIZ/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50115 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 12-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SASMAL
• Assessee Lawyers: N O N E

Judgement Text

ITA NO.404 OF 10 D.N. RAJU, VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 404 /VIZAG/ 20 10 ASSESSMENT YEAR : 2006 - 07 DCIT, CIRCLE - 3(1), RANGE - 3 VISAKHAPATNAM VS. SRI D.N. RAJU VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO.ACJPR 2114A APPELLANT BY: SHRI B. SASMAL, DR RESPONDENT BY: N O N E ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A) ON FOLLOWING GROUNDS: 1. THE ORDER OF THE HONBLE CIT(A)-1, VISAKHAPATNAM IS ERRONEOUS IN LAW AND TO THE FACTS OF THE CASE. 2. THE HONBLE CIT(A) IS NOT JUSTIFIED IN DELETING ADD ITION MADE ON ACCOUNT OF ESTIMATION OF THE GROSS PROFIT RATE @ 12 .5% ADOPTED BY THE AO BASED ON THE FACTS OF THE CASE. 3. THE DECISION OF THE HONBLE CIT(A) IS NOT ACCEPTABL E ON THE GROUND THAT THE ASSESSEE HAS NOT MADE TDS AS PER PROVISOS OF CHAPTER XVIIB OF THE ACT AND THE EXPENDITURE INCURRED BY TH E ASSESSEE HAS NOT BEEN SUBJECTED TO TDS AS REQUIRED UNDER THE PRO VISIONS OF SEC.40(A)(IA) OF THE I.T. ACT. BESIDES, HAVING REG ARD TO THE NATURE OF DISCREPANCIES NON-VERIFIABILITY OF THE EXPENDITU RE, THE ESTIMATION OF INCOME OF THE ASSESSEE @ 12.5% IS REASONABLE IN THE NATURE AND TRADE OF THE ASSESSEE. 4. ANY OTHER GROUND THAT MAY BE RAISED AT THE TIME OF HEARING. 2. DURING THE COURSE OF HEARING OF THE APPEAL, IT I S NOTICED THAT THE CIT(A) HAD ADJUDICATED THE APPEAL OF THE ASSESSEE F OLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF ITA NO.234/VIZAG/2008 DATED 12.12.2008 AND DIRECTED THE A.O. TO FOLLOW THE ORDER OF THE TRIBUNAL WHERE THE PROFIT WAS ESTIMATED AT 8% OF THE GROSS CONTRACTUAL RECEIPT. SINCE THE CIT (A) HAS DECIDED THE APPEAL FOLLOWING THE ORDER OF THE TRIBUNAL, WE FIND NO INF IRMITY IN HIS ORDER. MOREOVER, THE LD. D.R. DURING THE COURSE OF HEARING COULD NOT BRING ANYTHING ON RECORD THAT THE IMPUGNED ORDER OF THE TRIBUNAL I N ITA NO.234/VIZAG/2008 ITA NO.404 OF 10 D.N. RAJU, VSKP 2 HAS BEEN OVERRULED BY THE HONBLE HIGH COURT. SINC E THIS ORDER OF THE TRIBUNAL HOLDS THE FIELD, THE SUBORDINATE AUTHORITI ES ARE REQUIRED TO FOLLOW THE SAME. SINCE THE CIT(A) HAS FOLLOWED THE ORDER OF T HE TRIBUNAL, WE FIND NO INFIRMITY IN HIS ORDER AND WE CONFIRM THE SAME. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 8.4.2011 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 8 TH APRIL, 2011 COPY TO 1 THE DCIT, CIRCLE - 3(1), RANGE - 3, VISAKHAPATNAM 2 SRI D.N. RAJU, D.NO.49 - 54 - 5/11, BALAJI HILLS, VISAKHAPATNAM 3 THE CI T, VISAKHAPATNAM 4 THE CIT (A) , VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM