Income Tax Officer, Ward-10(1), Hyderabad V. Sri Sudhir Reddy Basani, Secunderabad

ITA 755/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91621 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: S RAMA RAO
• Keywords: Corroborative evidences; Condonation of delay
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI P.M.JAGTAP, ACCOUNTANT MEMBER ITA NO.755/HYD/2014 : ASSESSMENT YEAR 2008 - 09 INCOME TAX OFFICER WARD 10(1), HYDERABAD V/S. SHRI SUDHIR REDDY BASANI, SECUNDERABAD (PAN ACXPB 4181Q) (APPELLANT) (RESPONDENT) CROSS OBJECTION N O . 9/HYD/2015 (IN ITA NO.755/HYD/2014 ) : ASSESSMENT YEAR 2008 - 09 SHRI SUDHIR REDDY BASANI, SEC UNDERABAD (PAN ACXPB 4181Q) V/S. INCOME TAX OFFICER WARD 10(1), HYDERABAD ( CROSS OBJECTOR ) (RESPONDENT) ASSESSEE BY : SHRI S.RAMA RAO DEPARTMENT BY : SHRI RAJAT MITRA DR DATE OF HEARING 30.4.2015 DATE OF PRONOUNCEMENT 01.05.2015 O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY TH E ASSESSEE FOR THE ASSESSMENT YEAR 2008 - 09 ARE DIRECTED AGAINST TH E ORDER O F THE COMMISSIONER OF INCOME - TAX(APPEALS). I TA NO. 755 /H YD/20 1 4 & CO THEREIN SHRI SUDHIR REDDY BASANI, SECUNDERABAD 2 ITA NO.755/HYD/2014 (REVENUES APPEAL): 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER - 1. THE LD. CIT(A) ERRED IN FACTS OF THE CASE. 2. THE LD. CIT(A) ERRED IN FACT AND IN LAW IN REDUCING THE MARGIN OF ESTIMATED PROFIT, AS THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNTS DURING THE RE MAND PROCEEDINGS, BUT THE BILLS AND VOUCHERS PRODUCED FOR THE EXPENSES CLAIMED IN PROFIT & LOSS ACCOUNT ARE INCOMPLETE AND DO NOT HAVE ANY SUPPORTING EVIDENCES THEREOF. KEEPING IN VIEW OF NATURE OF BUSINESS, THE A.O. HAS ESTIMATED THE GROSS PROFIT AT 8% WHICH IS REASONABLE AND IS ON PAR WITH SECTION 44AF OF I.T. ACT, 1961. 3. THE LD. CIT(A) ERRED IN FACT AND IN LAW IN CONFIRMING THE SUNDRY CREDITORS WHOSE CONFIRMATION WAS NOT SUBMITTED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER EITHER DURING THE SCRUT INY PROCEEDINGS OR REMAND PROCEEDINGS. 3. THE LEARNED COUN S EL FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE AS THE DISPU T ED TAX IN THIS CA S E WAS LESS THAN RS.3 LAKHS, THE MON E TARY LIMIT FIXED BY THE CBDT FOR FILIN G AN APPEAL BEFORE THE TRIBUNAL. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDER O F THE ASSESSING OFFICER. 5. W E HAVE CON S I D ERED THE RIVAL SUBMI S SION S AND PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) . IN VIEW OF THE UNCONTROVERTED SUB M I S SION O F TH E ASSESSEE T H A T T HE DISPUTED TAX IN THIS CA S E WAS LESS THAN RS.3 LA K HS, WHICH I S THE M ONETARY LIMIT FOR FILING AN APPEAL B EFORE THE TRIBUNAL BY THE DEPARTMENT, WE HOLD THAT THE PRESENT APPEAL PREFERRED BY THE REVENUE IS NOT MAINTAINABLE AND IS ACCORDINGLY DISMISSED IN LIMINE. I TA NO. 755 /H YD/20 1 4 & CO THEREIN SHRI SUDHIR REDDY BASANI, SECUNDERABAD 3 CROSS OBJECTION NO.9/HYD/2014 6. GROUNDS OF THE CROSS O BJECTION OF TH E ASSESSEE ARE AS UN D ER; - 1. THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN CONFIRMIN G THE DISALLOWANCE TO AN EXTENT OF RS.47,249/ - F R OM OUT OF INTEREST CLAIMED ON THE HOU S IN G LOAN. 2. THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN HOL D IN G THAT THE BOOKS OF AC C OUN T ARE TO BE REJEC T ED AND FURTHER ERRED IN E STIM A TING THE N E T INCOME AT 6% OF THE TU RNOVER. 3. THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN CON F I RM IN G THE ADDITION ON AC C OU N T OF SUN D RY CREDITORS TO AN EXTENT OF R S .3,35,851/ - . 7. THE L EARNED COUNSEL FOR TH E ASSESSEE SUBMI TT ED THAT THERE WAS A DELAY OF 179 DAYS IN PREFERRI NG THE CROSS O BJECTION BY TH E ASSESSEE AND A CONDONATION APPLICATION HAS BEEN FIL E D SEPARATELY. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON THE ISSUE OF CONDONATION OF DELAY . WE FIND THAT NO REASONABLE CAU S E FOR LATE FILING THE CROSS OBJECTION COULD B E ESTABLI S H E D BY THE ASSESSEE. ACCORDINGLY, THE CROSS OBJECTION PREFERRED BY THE ASSESSEE IS DISMISSED. 9. IN THE RESULT, APPEAL O F THE R E VENU E AS WELL AS TH E CROSS O BJECTION OF THE ASSESSEE ARE DIS M I SS ED. ORDER PRONOUNCED IN THE COURT ON 1ST MAY, 2 015 SD/ - SD/ - (P.M.JAGTAP) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/ - 1 ST MAY, 2015 I TA NO. 755 /H YD/20 1 4 & CO THEREIN SHRI SUDHIR REDDY BASANI, SECUNDERABAD 4 COPY FORWARDED TO: 1. SHRI SUDHIR REDDY BASANI, PROP. SUJAI RIBBONS INDIA, F.NO.639, 6 TH FLOOR, CHANDRALOK COMPLEX, SECUNDERABAD 2. INCOME TAX OFFICER WARD 10(1), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) 18, MUMBAI COMMISSIONER OF INCOME - TAX(APPEALS) VI, HYDERABAD 5 . COMMISSIONER OF INCOME - TAX IV, HYDERABAD 6 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S