Ramesh Maddi, Siddipet V. Income Tax Officer, Ward-1, Siddipet

ITA 459/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4755 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 16-05-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 05-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS NEEJU GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 459 / HYD/ 201 8 (ASST. YEAR : 20 1 4 - 1 5 ) RAMESH MADDI, PROP. M/S. RENUKA WINES, NO. 4 - 81, DUMPALAPALLY (V), DUBBAK (M), SIDDIPET. V S . IT O , WARD - 1, SIDDIPET . P AN NO. AJDPM 1505 C (APPELLANT) (RESPONDENT) ASSESSEE BY : SMT. S. SANDHYA - ADV . DEPARTMENT BY : MRS. NEEJU G U PTA DR DATE OF HEARING : 1 6 / 05 /201 9 . DATE OF PRONOUNCEMENT : 1 7 / 0 5 /201 9 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 7 , HYDERABAD , DATED 22 / 1 2 /201 7 FOR THE ASSESSMENT YEAR 20 1 4 - 1 5 . 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS ESTIMATION OF INCOME . 3 . IN THIS CASE, THE ASSESSING OFFICER HAS ESTIMATED THE PROFIT OF THE ASSESSEE AT 5% ON THE COST OF GOODS SOLD . 4. ON APPEAL, LD.CIT(A) SCALED DOWN THE PROFIT OF THE ASSESSEE AT 4% . 5 . LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ITAT, HYDERABAD B' BENCH IN THE CASE OF YADAGIRI KUMMARI VS. ITO IN ITA NO. 2035/HYD/2018, DATED 30/01/2019 HAS CONSISTENTLY HELD THAT 2 ITA NO. 459 / HYD /2018 ( RAMESH MADDI ) ESTIMATION OF PROFIT AT 3 % IN IMFL BUSINESS CARRIED BY THE ASSESSEE IS REASONABLE . 6 . LD. DEPARTMENTAL REPRESENTATIVE STRON GLY SUPPORTED THE ORDERS PASSED BY THE AUTHORITIES BELOW. 7 . I HAVE HEARD LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . 8 . THE ASSESSEE IS CARRYING IMFL BUSINESS , BUT NOT MAINTAINED PROPER BOOKS OF ACCOUNT, BILLS & VOUCHERS. THEREFORE, THE ASSESSING OFFICER HAS ESTIMATED THE PROFIT OF THE ASSESSEE AT 5% ON THE COST OF GOODS SOLD , WHICH WAS SCALED DOWN TO 4% BY THE LD.CIT(A) . UND ER THE SIMILAR LINES OF BUSINESS , THE COORDINATE BENCH OF HYDERABAD TRIBUNAL IN THE CASE OF YADAGIRI KUMMARI (SUPRA) DIRECTED THE ASSESSING OFFICER TO ADOPT 3% OF THE COST OF GOODS S OLD AS INCOME OF THE ASSESSEE. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE REFERRED TO DECISION , I DIRECT THE ASSESSING OFFICER TO ADOPT 3% OF THE COST OF GOODS OF LIQUOR SOLD AS INCOME OF THE ASSESSEE. THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. 9 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 17 TH DAY OF MAY , 201 9 . S D/ - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 17 TH MAY , 201 9 . 3 ITA NO. 459 / HYD /2018 ( RAMESH MADDI ) VR/ - COPY TO: 1. THE ASSESSEE - RAMESH MADDI, PROP. M/S. RENUKA WINES, NO. 4 - 81, DUMPALAPALLY (V), DUBBAK (M), SIDDIPET. 2. THE REVENUE - ITO, WARD - 1, SIDDIPET . 3. THE PR. CIT - 7, HYDERABAD . 4. THE CIT(A) - 7 , HYDERABAD . 5. THE D.R . , HYDERABAD. 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, HYDERABAD .