Saastha Warehousing Limited , Hyderabad V. Income Tax Officer, Ward-3(1), Hyderabad

ITA 756/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3241 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 03-06-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 13-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Business income; Depreciation
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 756 /HYD/201 9 (ASSESSMENT YEAR : 20 14 - 15 ) M/S. SAASTHA WAREHOUSING LIMTIED, HYDERABAD. PAN AACCSW 8080R ..APPELLANT. VS. INCOME TAX OFFICER, WARD 3(10), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI P. MURALI MOHAN RAO. RESPONDENT BY : SHRI WASEEM UR REHMAN (D.R.) DATE OF HEARING : 3.6.2021 . DATE OF PRONOUNCEMENT : 14 .0 6 .2021. . O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 9 , HYDERABAD S ORDER DT. 21.03.2 019 PASSED IN CASE NO. 10402/CIT(A) - 9, HYD/2018 - 19 IN 2 ITA NO. 756/HYD/2019 PROCEEDINGS UNDER SECTION 14 4 OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WITH THE ABLE ASSISTANCE OF BOTH THE PARTIES, WE ADVERT TO THE ASSESSEE'S FIRST AND FOREMOST SUBSTANTIVE GROUND THAT THE ASSESSING OFFICER AS WELL AS THE CIT(A) HAVE ERRED IN LAW AND ON FACTS IN ESTIMATING 10% OF ITS TOTAL RECEIPTS OF RS.5,82,73,617; COMING TO RS.58,27,361 AS BUSINESS INCOME IN GODOWNS . THE ASSESSEE IS FAIR ENOUGH IN NOT SEEKING RESTORATION OF BOOKS OF ACCOUNTS WHICH STOOD REJECTED DURING THE C OURSE OF ASSESSMENT . ITS ONLY GRIEVANCE IS CONFINED TO THE QUANTIFICATION OF ASSESSEE'S ESTIMATED INCOME @ 10%. 3. WE STAY ON THIS QUANTIFICATION ASPECT AS NOTICE THAT NEITHER THE ASSESSEE FILED ALL THE RELEVANT DETAILS OF ITS CORRESPONDING BUSINES S EXPENDITURE NOR THE ASSESSING OFFICER AS WELL AS CIT(A) HAVE TAKEN INTO CONSIDERATION THE RELEVANT PRECEDING ASSESSMENT YEAR 3 ITA NO. 756/HYD/2019 OR SUCCEEDING ASSESSMENT YEAR PROFIT RESULTS SO AS TO ASSESS THIS TAX PAYER @ 10%. FACED WITH THIS SITUATION, WE DEEM IT APPROPR IATE THAT A LUMP SUM ESTIMATION OF 7.5% THAN THAT @ 10% IN ISSUE WOULD BE JUST AND PROPER WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER CASE . NEEDLESS TO MENTION, THE ASSESSING OFFICER IS FURTHER DIRECTED TO CONSIDER THE ASSES SEE'S CLAIM(SUPRA) OF CARRY FORWARD OF LOSSES AS WELL AS DEPRECIATION; AS PER LAW IN CONSEQUENTIAL PROCEEDINGS. THE ASSESSEE SHALL ALSO FILE ALL NECESSARY DETAILS RELEVANT THERETO; AT ITS OWN RISK AND RESPONSIBILITY. 4 . THIS ASSESSEE'S APPEAL IS PARTL Y ALLOWED, IN A BOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 14 .0 6 .2021. * REDDY GP 4 ITA NO. 756/HYD/2019 COPY TO : 1. M/S. SAASTHA WAREHOUSING LIMITED, 7 - 20, NDR GODOWN COMPLEX, MOOSAPET, HYDERABAD - 500 018 2. ITO, WARD3(1), HYDERABAD. 3. PR. C I T - 3 , HYDERABAD. 4. CIT(APPEALS) - 9, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.