Ashok Kumar Chilla, Hyderabad V. Income Tax Officer, Ward-15(2), Hyderabad

ITA 88/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4753 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-05-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 10-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 8 8 / HYD/ 201 8 (ASST. YEAR : 20 1 3 - 1 4 ) ASHOK KUMAR CHILLA, PROP. VANDANA WINES, 4 - 7 - 10/3, RAGHAVENDRA NAGAR, NACHARAM, HYDERABAD. V S . IT O , WARD - 15( 2 ), HYDERABAD . P AN NO. AHZPC 0717 E (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE . DEPARTMENT BY : MR . NI L ANJAN DEY DR DATE OF HEARING : 1 5 / 05 /201 9 . DATE OF PRONOUNCEMENT : 17 / 0 5 /201 9 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 7 , HYDERABAD , DATED 13 / 09 /201 7 FOR THE ASSESSMENT YEAR 20 1 3 - 1 4 . 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS ESTIMATION OF INCOME . 3 . IN THIS CASE, THE ASSESSING OFFICER HAS ESTIMATED THE PROFIT OF THE ASSESSEE AT 5% ON THE COST OF GOODS SOLD , WHICH WAS CONFIRMED BY THE LD.CIT(A). 4 . NONE APPEARED ON BEHALF OF THE ASSESSEE. IT IS NOTICED THAT THE ITAT, HYDERABAD B' BENCH IN THE CASE OF YADAGIRI KUMMARI VS. ITO IN ITA NO. 2035/HYD/2018, DATED 30/01/2019 HAS CONSISTENTLY 2 ITA NO. 8 8 / HYD /2018 ( ASHOK KUMAR CHILLA ) HELD THAT ESTIMATION OF PROFIT AT 3 % IN IMFL BUSINESS CARRIED BY THE ASSESSEE IS REASONABLE . 5. LD. DEPARTMENTAL REPRESENTATIVE STRON GLY SUPPORTED THE ORDERS PASSED BY THE AUTHORITIES BELOW. 6. I HAVE HEARD LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . 7. THE ASSESSEE IS CARRYING IMFL BUSINESS , BUT NOT MAINTAINED PROPER BOOKS OF ACCOUNT, BILLS & VOUCHERS. THEREFORE, THE ASSESSING OFFICER HAS ESTIMATED THE PROFIT OF THE ASSESSEE AT 5% ON THE COST OF GOODS SOLD , WHICH WAS CONFIRMED BY THE LD.CIT(A) . UNDER THE SIMILAR LINES OF BUSINESS , THE COORDINATE BENCH OF HYDERABAD TRIBUNAL IN THE CASE OF YADAGIRI KUMMARI (SUPRA) DIRECTED THE ASSESSING OFFICER TO ADOPT 3% OF THE COST OF GOODS S OLD AS INCOME OF THE ASSESSEE. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE REFERRED TO DECISION , I DIRECT THE ASSESSING OFFICER TO ADOPT 3% OF THE COST OF GOODS OF LIQUOR SOLD AS THE INCOME OF THE ASSESSEE. THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 17 TH DAY OF MAY , 201 9 . S D/ - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 17 TH MAY , 201 9 . 3 ITA NO. 8 8 / HYD /2018 ( ASHOK KUMAR CHILLA ) VR/ - COPY TO: 1. THE ASSESSEE - ASHOK KUMAR CHILLA, PROP. VANDANA WINES, 4 - 7 - 10/3, RAGHAVENDRA NAGAR, NACHARAM, HYDERABAD. 2. THE REVENUE - ITO, WARD - 15( 2 ), HYDERABAD. 3. THE PR. CIT - 7, HYDERABAD. 4. THE CIT(A) - 7 , HYDERABAD . 5. THE D.R . , HYDERABAD. 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, HYDERABAD .