Mushikam Sudershan Goud Rep by Mushikam Amar Kiran Goud, Adilabad, Adilabad V. ITO, Ward-1, Nirmal, Nirmal

ITA 94/HYD/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2586 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 19-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147

Judgement Text

ITA NO.94 OF 2017 LATE MUSHIKAM SUDERSHAN GOUD ADIL ABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.94/HYD/2017 (ASSESSMENT YEAR: 2013-14) LATE SHRI MUSHKAM SUDERSHAN GOUD (REP. BY LEGAL REP.(HEIR)ELDER SON MUSHKAM AMAR KIRAN GOUD ADILABAD PAN: ACAPM 9188 P VS INCOME TAX OFFICER WARD 1 NIRMAL FOR ASSESSEE : SHRI K. HANMANDLO FOR REVENUE : SMT. SUMAN MALIK, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14. IN TH IS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE CIT(A) IN ESTIMATING THE PROFIT AT 5% OF THE STOCK PUT TO SALE . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL AND LIQUOR DEALER, FILED HIS RETURN OF I NCOME ADMITTING A TOTAL INCOME OF RS.4,62,410 ON 30.10.2013. DURING T HE ASSESSMENT PROCEEDINGS U/S 147 OF THE ACT, THE AO O BSERVED THAT THE ASSESSEES BOOKS OF ACCOUNT ARE NOT VERIFIABLE. HE THEREFORE, REJECTED THE BOOKS AND PROCEEDED TO ESTIMATE THE IN COME OF THE ASSESSEE AT 5% OF THE GOODS PUT TO SALE BY FOLLOWING THE DECISION DATE OF HEARING : 26.04.2017 DATE OF PRONOUNCEMENT : .04.2017 ITA NO.94 OF 2017 LATE MUSHIKAM SUDERSHAN GOUD ADIL ABAD PAGE 2 OF 3 OF THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENC H IN THE CASE OF AMARAVATI WINES IN ITA NO.231/HYD/2013. ON APPEAL, THE CIT (A) CONFIRMED THE ORDER OF THE AO AND THE ASSES SEE IS IN APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THIS TRIBUNAL IN SIMILAR CASES HAS BEEN RESTRICTING THE PROFIT AT 3% OF THE GOODS PUT TO SALE. HE PRAYED FOR SIMILAR DIR ECTION IN THE CASE OF THE ASSESSEE BEFORE US. 4. THE LEARNED DR HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT IN SIMILAR CASES, THIS TRIB UNAL HAS RESTRICTED THE PROFIT AT 3% OF THE GOODS PUT TO SALE . THE RELEVANT PORTION OF THE ORDER IN ITA NO.454/HYD/2016 DATED 3 0.12.2016 IN RESPECT OF SHRI K.V.K.KISHORE BABU, SHANKARPALLI IS REPRODUCED HEREUNDER: 6. AS FAR AS THE ISSUE IN GROUND NO.2 IS CONCERNED, THE AO HAS ESTIMATED THE INCOME FROM RUNNING OF A WINE SHOP AT 5% OF THE GOODS PUT TO SALE AND THE CIT (A) HAS CONFIRMED THE SAME AND THE ASSESSEE IS IN 2 ND APPEAL BEFORE US. THE LEARNED COUNSEL FOR THE ASSESSEE RELIED UPON THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF SECUNDERABAD WINES VS. ITO IN ITA NO.181/HYD/2016 WHEREIN THE TRIBUNAL HAS UPHELD THE ESTIMATION OF INCOME AT 3% OF THE COST OF GOODS SOLD. BOTH OF US ARE SIGNATORIES TO THE SAID ORDER. RESPECTFULLY FOLLOWING THE SAME, WE DIRECT THE AO TO ESTIMATE THE INCOME OF THE ASSESSEE ALSO AT 3% OF THE COST OF GOODS PUT TO SALE. ITA NO.94 OF 2017 LATE MUSHIKAM SUDERSHAN GOUD ADIL ABAD PAGE 3 OF 3 ASSESSEES GROUND OF APPEAL NO.2 IS ACCORDINGLY ALLOWED. 6. RESPECTFULLY FOLLOWING THE SAME, THE ASSESSEES APPEAL IS TREATED AS ALLOWED BY DIRECTING THE AO TO ESTIMA TE THE INCOME AT 3% OF THE COST OF THE GOODS PUT TO SALE. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL, 2017. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 28 TH APRIL, 2017. VINODAN/SPS COPY TO: 1 SHRI MUSHKAM SUDERSHAN GOUD, C/O C.A. SHRI A.K. HANMANDLOO, FLAT NO.404, MOUNT NASIR APARTMENTS, BES IDE RAVINDRA BHARATHI, SAIFABAD, HYDERABAD 500004 2 INCOME TAX OFFICER WARD 1 NIRMAL 3 CIT (A)-5 HYDERABAD 4 PR. CIT 5 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER