Allu Appalaswamy & Co., Rajamahendravaram V. The Income Tax Officer, Ward - 1(1), , Rajamahendravaram

ITA 84/VIZ/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5463 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 18-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 145

Judgement Text

आयकरअपीलीयअधधकरण, धिशाखापटणमपीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री लधलत कु मार, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI LALIET KUMAR, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.84/Viz/2020 (ननधधारण वर्ा/ Assessment Year : 2012-13) M/s Allu Appalaswamy & Co. Shop No.2 C.V.Market Rajamahendravaram [PAN : AAJFA5472D] Vs. Income Tax Officer Ward-1(1) Rajamahendravaram (अपीलाथी/ Appellant) (प्रत्यथी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथीकीओरसे/ Respondent by : Shri SPG Mudaliar, DR सुनवधई की तधरीख/ Date of Hearing : 31.03.2022 घोर्णध की तधरीख/Date of Pronouncement : 31.03.2022 O R D E R Per Shri Laliet Kumar, Judicial Member This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [in short, “CIT(A)”], Rajamahendravaram in ITA No.10193/2015-16/CIT(A)/RJY dated 22.05.2019 for the Assessment Year (A.Y.) 2012-13. 2 ITA No.84/Viz/2020, A.Y.2012-13 M/s Allu Appalaswamy & Co., Rajamahendravaram 2. In this case, the assessee has filed it’s appeal belatedly with the delay of 185 days. The assessee filed petition for condonation of delay explaining the reasons and pleaded to condone the delay and admit the appeal for hearing. We have gone through the reasons for delay in filing the appeal belatedly, we are convinced with the same and deem it appropriate to condone the delay and admit the appeal for hearing. 3. Ground No. 1 and 4 are general in nature and does not require any adjudication. 4. The Ld.AR has not pressed Ground No.2, stating that the assessee has admitted the same before the Ld.CIT(A), therefore, no fresh adjudication is required and the ground is dismissed as not pressed. 5. Ground No.3 is related to the addition made by the AO and confirmed by the Ld.CIT(A) towards cash deficit. The Ld.AR submitted that once the assessee has estimated the income, then everything is subsumed in deriving the profit and no separate addition can be made for cash deficit. 6. Per contra , the Ld.DR submitted that there is distinction between estimation of income and estimation of profit. The Ld.DR further submitted that what has been contemplated u/s 145 is estimation of profit, but not estimation of income. 3 ITA No.84/Viz/2020, A.Y.2012-13 M/s Allu Appalaswamy & Co., Rajamahendravaram 7. We have heard both the parties and perused the material placed on record. There is no record produced by the assessee either before the AO or CIT(A), explaining the cash deficit. As the assessee had agreed to estimation of profit on it’s own before the Ld.CIT(A), in our view, for the purpose of estimation of profit, it is essential to estimate income and thereafter only the profit can be estimated. Once, the assessee and the revenue authorities have accepted the estimation of profit, then, the question is whether the income can be separately estimated or not. At this stage, the Ld.AR has fairly submitted that addition can be confirmed to some extent and relief can be granted to the assessee on account of addition of Rs.99,168/- to which the Ld.DR has not raised objection. Considering the totality and peculiarity of the facts, we deem it appropriate to restrict the addition to only Rs.20,000/-. Thus, the assessee gets relief of the balance amount of Rs.79,168/-. 3. In the result, appeal of the assessee is partly allowed. Order Pronounced in open Court on 31 st March,2022. Sd/- Sd/- (एस बालाकृ ष्णन) (लधलत कु मार) (S.BALAKRISHNAN) (LALIET KUMAR) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 31.03.2022 L.Rama, SPS 4 ITA No.84/Viz/2020, A.Y.2012-13 M/s Allu Appalaswamy & Co., Rajamahendravaram आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1.ननधधाऩरती/ The Assessee– M/s Allu Appalaswamy & Co., Shop No.2, C.V.Market, Rajamahendravaram 2. रधजस्व/The Revenue – Income Tax Officer, Ward-1(1), Rajamahendravaram 3. प्रधान आयकर आयुक्त / The Principal Commissioner of Income Tax, Rajamahendravaram 4. आयकर आयुक्त (अपील)/ The Commissioner of Income Tax (Appeals), Rajamahendravaram 5. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम/ DR,ITAT,Visakhapatnam 6.गधर्ाफ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam