Gali Rama Chandra Reddy , Nandyal V. Income Tax Officer, Ward-1, Nandyal

ITA 561/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3608 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 31-10-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 18-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 561 /HYD./201 9 ASSESSMENT YEAR: 20 1 3 - 14 SH. GALI RA MA CHANDRA REDDY VS. ITO, WARD 1 C/O M/S SEKHAR & CO. NANDYAL 133/4, RASHTRAPATHI ROAD SECUNDERABAD 500 003 PAN: A L SP G9337P (APPELLANT) (RESPONDENT) FOR ASSESSE : S H. K. C.DEVDAS, A.R. FOR REVENUE : S MT. MATTA PADMA, D.R. DATE OF HEARING : 31 / 1 0/19 DATE OF PRONOUNCEMENT : 07 / 11 /19 O R D E R THIS IS ASSESSEES APPEAL FOR A.Y. 201 3 - 14 AGAINST THE ORDER OF THE LD.CIT(A), KURNOOL DATED 22.10.2018 . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL, D OING RETAIL BUSINESS IN LIQUOR , HAD DECLARED GROSS PROFIT OF 11.79% AND NET PROFIT OF 2.37% OF COST OF GOODS SOLD. THE A.O. HOWEVER ESTIMATED INCOME AT 5% OF THE COST OF GOODS SOLD. AGGRIEVED , ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WITH A DELAY OF 797 DAYS. THE CIT(A) REFUSED THE CONDONATION OF DELAY AND THEREFORE DID NOT DECIDE ASSESSEES APPEAL ON MERITS. AGAINS T THIS ORDER OF CIT(A) , THE ASSESSEE IS IN SECOND APPEAL BEFORE ME. 3. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS NOT KNOWING THE NUANCES OF LAW AND WAS UNAWARE OF THE STATUTORY PROVISIONS. ITA NO. 561/HYD/2019 AY 2013 - 14 SH. GALI RAMA CHANDRA REDDY, NADYAL VS. ITO, WARD 1, NANDYAL 2 EVEN BEFORE THE TRIBUNAL, THE ASSESSEE FI LED THE APPEAL WITH A DELAY OF 99 DAYS. LD.COUNSEL FOR THE ASSESSEE HAS TAKEN THE SAME ARGUMENT BEFORE THIS TRIBUNAL ALSO. HE SUBMITTED THAT IN CASE OF RETAIL LIQUOR BUSINESS, THIS TRIBUNAL HAS BEEN DIRECTING THE AO TO ESTIMATE NET PROFIT @ 3% OF THE CO ST OF GOODS PUT TO SALE AND THAT THE ASSESSEE OFFERED NET INCOME AT 2.37% OF THE GOODS SOLD WHEREAS THE AO ESTIMATED IT AT 5%. THEREFORE, HE PRAYED FOR CONDONATION OF DELAY BOTH BEFORE ITAT AND BEFORE THE CIT(A) AND TO ESTIMATE INCOME AT 3% AS THE MATTE R IS COVERED IN FAVOUR OF THE ASSESSEE. 4. LD.DR HOWEVER, OPPOSED GRANT OF ANY RELIEF TO ASSEEEE. 5. HAVING REGARD TO RIVAL CONTENTIONS AND MATERIAL PLACED ON RECORD, I FIND THAT IN SIMILAR CASES THIS TRIBUNAL HAS BEEN DIRECT ING THE AO TO ESTIMATE THE PROFIT AT 3% OF THE COST OF GOODS PUT TO SALE, AS REASONABLE NET PROFIT. IN VIEW OF THE SAME , I AM OF THE OPINION THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE ON MERITS ITSELF. THEREFORE, I CONDONE THE DELAY BOTH BEFORE THE CIT(A) AS WELL AS BEFORE THE TRIBUNAL, AND DIRECT THE AO TO ESTIMATE NET PROFIT AT 3% OF THE COST OF GOODS PUT TO SALE. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 07 TH NOVEMBER, 2019. (P MADHAVI DEVI) JUDICIAL MEMBER DATED: THE 07 TH NOVEMBER, 2019. *GMV ITA NO. 561/HYD/2019 AY 2013 - 14 SH. GALI RAMA CHANDRA REDDY, NADYAL VS. ITO, WARD 1, NANDYAL 3 COPY FORWARDED TO: 1. SRI GALI RA MA CHANDRA REDDY, C/O M/S SEKHAR & CO., 133/4, RASHTRAPATHI ROAD, SECUNDERABAD 500 0 03 2. ITO, WARD 1 , NANDYAL . 3. CIT(A), KURNOOL 4. PR.CIT, KURNOOL . 4. D.R. ITAT HYDERABAD 5. GUARD FILE // C O P Y // ITA NO. 561/HYD/2019 AY 2013 - 14 SH. GALI RAMA CHANDRA REDDY, NADYAL VS. ITO, WARD 1, NANDYAL 4 1. DRAFT DICTATED ON 31/10/19 2. DRAFT PLACED BEFORE THE AUTHOR 01/11/19 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY SECOND MEMBER 5. APPROVED DRAFT COMES TO SRPS 11/11/19 6. KEPT FOR PRONOUNCEMENT 11/11/19 7. FILE SENT TO BENCH CLERK