Khasim Dudekula , Kurnool V. Income Tax Officer, Ward-2, Nandyal

ITA 565/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5712 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 22-03-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 18-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 565/HYD/2019 ASSESSMENT YEAR: 2014-15 SRI KHASIM DUDEKULA, NANDYAL, KURNOOL DIST. [PAN: ATSPD2299K] VS INCOME TAX OFFICER, WARD-2, NANDYAL (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.C.DEVDAS, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 22-03-2021 DATE OF PRONOUNCEMENT : 30-04-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2014-15 ARISES FROM TH E CIT(A)-KURNOOLS ORDER DATED 04-09-2018 PASSED IN CA SE NO.10144/CIT(A)/KNL/2017-18 IN PROCEEDINGS U/S.144 OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES AT THE OUTSET THAT THIS ASSESSEES INSTANT APPEAL SUFFERS FROM 134 DAYS DELAY STATED TO BE ATTRIBUTA BLE TO THE REASON(S) BEYOND HIS CONTROL AS PER CONDONATION PETITION/AFFIDAVIT DT.10-04-2019. NO REBUTTAL HAS COME F ROM ITA NO. 565/HYD/2019 :- 2 -: THE DEPARTMENTAL SIDE. THE IMPUGNED DELAY IS CONDONED THEREFORE. 3. THE ASSESSEE HAS CANVASSED THE FOLLOWING SUBSTANTIV E GROUNDS IN THE INSTANT APPEAL: (1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E TAX (APPEALS), KURNOOL [CIT(A)] IN ESTIMATING THE INCOME OF THE AP PELLANT @8% ON RS.1,06,89,000/- IS WHOLLY UNSUSTAINABLE BOTH IN LA W AND IN FACTS. (2) THE LEARNED CIT(A) HAVING FOUND AS A MATTER OF FACT THAT THE APPELLANT FILED A RETURN OF INCOME AT RS.2,13,330/- SUPPORTED BY AGRICULTURAL INCOME OF RS.1 LAKH ERRED IN ESTIMATIN G THE INCOME @8% ON THE BANK DEPOSITS RS.1,06,89,000/-. (3) THE LD.CIT(A) FAILED TO NOTE THAT THE DEPOSITS AND WITHDRAWALS IN THE BANK WERE EXPLAINED AND THEREFORE, ERRED IN EST IMATING THE PROFIT AT 8% ON RS.1,06,89,000/- AT RS.8,55,120/-. 4. LEARNED AUTHORISED REPRESENTATIVE VEHEMENTLY CONTEND ED DURING THE COURSE OF HEARING THAT THE IMPUGNED INCOME ESTIMATION OF ASSESSEES PROFIT ELEMENT @8% IN ISSUE I S HIGHLY IMPROBABLE IN ASSESSEES LINE OF BUSINESS I.E., COM MISSION FOR TRANSACTIONS RELATING TO AGRICULTURAL PRODUCE AND ALLIE D ACTIVITIES. MR.DEVDAS FAILED TO REBUT THE CLINCHING FAC T THAT THE ASSESSEE HAS NOT FILED DETAILS OF SIMILAR PROFIT ELEME NT IN EARLIER AND SUCCEEDING ASSESSMENT YEARS SO AS TO ASSIST THE BEN CH ON THE IMPUGNED SOLE ISSUE. 5. COUPLED WITH THIS, THE REVENUE HAS ALSO NOT PROVED AS TO UNDER WHICH CIRCUMSTANCES THE LEARNED LOWER AUTHORITI ES AND MORE PARTICULARLY; THE ASSESSING OFFICER HAS ADOPTED 8% INCOME ELEMENT ON THE SUM TREATED AS TURNOVER IN ASSESSE ES LINE OF BUSINESS. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE THAT THE IMPUGNED ESTIMATION @8% DESERVES TO BE ITA NO. 565/HYD/2019 :- 3 -: RESTRICTED TO 6% ONLY WITH A RIDER THAT THE SAME SHALL NO T BE TREATED AS A PRECEDENT IN ANY OTHER CASE. 6. THIS ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWE D IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 30-04-2021 TNMM ITA NO. 565/HYD/2019 :- 4 -: COPY TO : 1.SRI KHASIM DUDEKULA, C/O. M/S.SEKHAR & CO., 133/4 , RASHTRAPATI ROAD, SECUNDERABAD. 2.THE INCOME TAX OFFICER, WARD-2, NANDYAL. 3.CIT(APPEALS)-KURNOOL. 4.PR.CIT-KURNOOL. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.