ITO, Hyderabad V. M/s Zeenath Suits &Sarees, Hyderabad

ITA 464/HYD/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3292 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-05-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 06-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: MD KURSHEED ALI
• Keywords: Revised return
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.461/HYD/2009 A.Y. 2006-07 ITO, WARD 8 (1), HYDERABAD VS M/S ZAREEN SUITS & SAREES, HYDERABAD (PAN AAAFZ 2856 M) (APPELLANT) (RESPONDENT) ITA NO.462/ HYD/2009 A.Y. 2006-07 ITO, WARD 8 (1), HYDERABAD VS M/S ZOHRA SUITS & SAREES, HYDERABAD (PAN AAAFZ 1640 F) (APPELLANT) (RESPONDENT) ITA NO.463/ HYD/2009 A.Y. 2006-07 ITO, WARD 8 (1), HYDERABAD VS MS/ NOORA SUITS & SAREES, HYDERABAD (PAN AADFN 2970 P) (APPELLANT) (RESPONDENT) ITA NO.464/ HYD/2009 A.Y. 2006-07 ITO, WARD 8 (1), HYDERABAD VS M/S ZEENATH SUITS & SAREES, HYDERABAD (PAN AAAFZ 1573 H) (APPELLANT) (RESPONDENT) APPELLANT BY: K.V.N. CHARYA, DR RESPONDENT BY: MD. KURSHEED ALI O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THESE FOUR APPEALS PREFERRED BY THE REVENUE ARE D IRECTED AGAINST DIFFERENT ORDERS PASSED BY THE CIT(A)-III, HYD ERABAD DATED ITA NOS.461 TO 464/HYD/2009 M/S ZAREEN SUITS AND SAREES, HYD. 2 2 2.2.2009 AND PERTAINS TO THE ASSESSMENT YEAR 2006-07. SINCE ISSUES INVOLVED IN THESE APPEALS ARE COMMON IN NATURE, THEY A RE CLUBBED TOGETHER, HEARD TOGETHER AND DISPOSED OFF VIDE THIS CO MMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS IN THESE APPEALS ARE COMMON WHICH ARE REPRODUCED AS FOLLOWS: 2. THE CIT(A) ERRED IN HOLDING THAT THE ESTIMATION OF TURNOVER AND PROFIT FOR THE ASSESSMENT YEAR 2006-07 IS NOT LOGICAL, EVEN TH OUGH THE PARTNER OF THE FIRM AND EVEN THE CIT(A) ACCEPTED THE FACT THAT NO BOOKS OF ACCOUNTS ETC. WERE MAINTAINED FOR THE ASSESSMENT 2006-07 ALSO. M OREOVER, THE TURNOVER AND INCOME ADMITTED BY THE ASSESSEE IN HIS RETURN O F INCOME IS ITSELF AN ESTIMATE NOT BASED ON ANY ACCOUNTING STANDARDS OR A CCOUNTING PRINCIPLES. 3. THE CIT(A) OUGHT TO HAVE APPRECIATED THAT IN HE ABSENCE OF ANY BOOKS OF ACCOUNTS AND OTHER RELEVANT MATERIAL FOR ASSESSMENT 2006-07, THE ESTIMATION OF TURNOVER AND PROFIT IS THE ONLY REMEDY WHICH WAS WORKED OUT BASING ON THE ACTUAL PHYSICAL STOCK AVAILABLE ON THE DATE OF SURV EY, WHICH IS THE ONLY REAL FIGURE AVAILABLE IN THE GIVEN SITUATION. ALL OTHER FIGURES REPORTED BY THE ASSESSEE IN HIS RETURN OF INCOME ARE IMAGINARY FIGU RES AND WITHOUT ANY BASIS. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THESE CASES, THERE WAS A SURVEY OPERATION U/S 133A OF THE INCOME TAX ACT WAS CONDUCTED IN THE ASSESSEES B USINESS PREMISES. CONSEQUENT TO THE SURVEY, THE ASSESSEE HAS FILED A REVISED RETURN OF INCOME ADMITTING ADDITIONAL INCOME. LATER ON, THE CASES WERE TAKEN UP FOR SCRUTINY. THE ASSESSING OFFICER REJECTED THE DECLARED INCOME AND ESTIMATED INCOME AT A VERY HIGH FIGURE. A GAINST THIS ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) IN ALL THESE Y EARS. THE CIT(A) HELD THAT THE ASSESSEE HAS ESTIMATED PROFIT AT 5% IN THE REVISED RETURN AND THE TURNOVER CANNOT BE ESTIMATED ON THE BA SIS OF CLOSING ITA NOS.461 TO 464/HYD/2009 M/S ZAREEN SUITS AND SAREES, HYD. 3 3 STOCK. THE INCOME ADMITTED BY THE ASSESSEE COVERS THE DISCREP ANCIES AND THERE IS NO FURTHER NECESSITY OF ESTIMATION OF INCOM E FOR THE LAPSE NOTICED IN THE COURSE OF SURVEY. HE DELETED THE ADDITIO N MADE BY THE ASSESSING OFFICER. THE ASSESSING OFFICER SHOULD HAVE CONSIDERED THE ENTIRE FACTS OF THE CASE. WE ARE OF THE OPINION THAT T HE CIT(A) HAS TAKEN CORRECT VIEW. THE ASSESSEE AFTER SURVEY, OFFERED ADDITIO NAL INCOME FOR THE DISCREPANCIES NOTICED BY THE ASSESSING OFFICER AND THE ASSESSING OFFICER WITHOUT BRINGING ANY EVIDENCE IN SUPPORT OF IT S CLAIM, MADE AN ADDITION WHICH IS NOT PERMITTED BY LAW AND WHICH IS ON LY SURMISES AND CONJUNCTURE AND AS SUCH, WE ARE NOT ABLE TO CONFIRM THE ASSESSMENT ORDER. ACCORDINGLY, THE DELETION OF ADDITION IS JUSTIF IED. 4. IN THE RESULT, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 21.5.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 21ST MAY, 2010 ITA NOS.461 TO 464/HYD/2009 M/S ZAREEN SUITS AND SAREES, HYD. 4 4 COPY FORWARDED TO: 1. ITO, WARD 8(1), IT TOWERS, AC GUARDS, HYDERABAD 2. M/S ZAREEN SUITS & SAREES, 21-2-23, PATHERGATTI, HY DERABAD 3. CIT(A)- III, HYDERABAD. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP