ITO, Hyderabad v. M/s Noora suits & Sarees, Hyderabad

ITA 463/HYD/2009 | 2006-2007
Pronouncement Date: 21-05-2010 | Result: Dismissed

Appeal Details

RSA Number 46322514 RSA 2009
Assessee PAN AAAFZ2856M
Bench Hyderabad
Appeal Number ITA 463/HYD/2009
Duration Of Justice 1 year(s) 1 month(s) 15 day(s)
Appellant ITO, Hyderabad
Respondent M/s Noora suits & Sarees, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 21-05-2010
Date Of Final Hearing 12-05-2010
Next Hearing Date 12-05-2010
Assessment Year 2006-2007
Appeal Filed On 06-04-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.461/HYD/2009 A.Y. 2006-07 ITO WARD 8 (1) HYDERABAD VS M/S ZAREEN SUITS & SAREES HYDERABAD (PAN AAAFZ 2856 M) (APPELLANT) (RESPONDENT) ITA NO.462/ HYD/2009 A.Y. 2006-07 ITO WARD 8 (1) HYDERABAD VS M/S ZOHRA SUITS & SAREES HYDERABAD (PAN AAAFZ 1640 F) (APPELLANT) (RESPONDENT) ITA NO.463/ HYD/2009 A.Y. 2006-07 ITO WARD 8 (1) HYDERABAD VS MS/ NOORA SUITS & SAREES HYDERABAD (PAN AADFN 2970 P) (APPELLANT) (RESPONDENT) ITA NO.464/ HYD/2009 A.Y. 2006-07 ITO WARD 8 (1) HYDERABAD VS M/S ZEENATH SUITS & SAREES HYDERABAD (PAN AAAFZ 1573 H) (APPELLANT) (RESPONDENT) APPELLANT BY: K.V.N. CHARYA DR RESPONDENT BY: MD. KURSHEED ALI O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THESE FOUR APPEALS PREFERRED BY THE REVENUE ARE D IRECTED AGAINST DIFFERENT ORDERS PASSED BY THE CIT(A)-III HYD ERABAD DATED ITA NOS.461 TO 464/HYD/2009 M/S ZAREEN SUITS AND SAREES HYD. 2 2 2.2.2009 AND PERTAINS TO THE ASSESSMENT YEAR 2006-07. SINCE ISSUES INVOLVED IN THESE APPEALS ARE COMMON IN NATURE THEY A RE CLUBBED TOGETHER HEARD TOGETHER AND DISPOSED OFF VIDE THIS CO MMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS IN THESE APPEALS ARE COMMON WHICH ARE REPRODUCED AS FOLLOWS: 2. THE CIT(A) ERRED IN HOLDING THAT THE ESTIMATION OF TURNOVER AND PROFIT FOR THE ASSESSMENT YEAR 2006-07 IS NOT LOGICAL EVEN TH OUGH THE PARTNER OF THE FIRM AND EVEN THE CIT(A) ACCEPTED THE FACT THAT NO BOOKS OF ACCOUNTS ETC. WERE MAINTAINED FOR THE ASSESSMENT 2006-07 ALSO. M OREOVER THE TURNOVER AND INCOME ADMITTED BY THE ASSESSEE IN HIS RETURN O F INCOME IS ITSELF AN ESTIMATE NOT BASED ON ANY ACCOUNTING STANDARDS OR A CCOUNTING PRINCIPLES. 3. THE CIT(A) OUGHT TO HAVE APPRECIATED THAT IN HE ABSENCE OF ANY BOOKS OF ACCOUNTS AND OTHER RELEVANT MATERIAL FOR ASSESSMENT 2006-07 THE ESTIMATION OF TURNOVER AND PROFIT IS THE ONLY REMEDY WHICH WAS WORKED OUT BASING ON THE ACTUAL PHYSICAL STOCK AVAILABLE ON THE DATE OF SURV EY WHICH IS THE ONLY REAL FIGURE AVAILABLE IN THE GIVEN SITUATION. ALL OTHER FIGURES REPORTED BY THE ASSESSEE IN HIS RETURN OF INCOME ARE IMAGINARY FIGU RES AND WITHOUT ANY BASIS. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THESE CASES THERE WAS A SURVEY OPERATION U/S 133A OF THE INCOME TAX ACT WAS CONDUCTED IN THE ASSESSEES B USINESS PREMISES. CONSEQUENT TO THE SURVEY THE ASSESSEE HAS FILED A REVISED RETURN OF INCOME ADMITTING ADDITIONAL INCOME. LATER ON THE CASES WERE TAKEN UP FOR SCRUTINY. THE ASSESSING OFFICER REJECTED THE DECLARED INCOME AND ESTIMATED INCOME AT A VERY HIGH FIGURE. A GAINST THIS ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) IN ALL THESE Y EARS. THE CIT(A) HELD THAT THE ASSESSEE HAS ESTIMATED PROFIT AT 5% IN THE REVISED RETURN AND THE TURNOVER CANNOT BE ESTIMATED ON THE BA SIS OF CLOSING ITA NOS.461 TO 464/HYD/2009 M/S ZAREEN SUITS AND SAREES HYD. 3 3 STOCK. THE INCOME ADMITTED BY THE ASSESSEE COVERS THE DISCREP ANCIES AND THERE IS NO FURTHER NECESSITY OF ESTIMATION OF INCOM E FOR THE LAPSE NOTICED IN THE COURSE OF SURVEY. HE DELETED THE ADDITIO N MADE BY THE ASSESSING OFFICER. THE ASSESSING OFFICER SHOULD HAVE CONSIDERED THE ENTIRE FACTS OF THE CASE. WE ARE OF THE OPINION THAT T HE CIT(A) HAS TAKEN CORRECT VIEW. THE ASSESSEE AFTER SURVEY OFFERED ADDITIO NAL INCOME FOR THE DISCREPANCIES NOTICED BY THE ASSESSING OFFICER AND THE ASSESSING OFFICER WITHOUT BRINGING ANY EVIDENCE IN SUPPORT OF IT S CLAIM MADE AN ADDITION WHICH IS NOT PERMITTED BY LAW AND WHICH IS ON LY SURMISES AND CONJUNCTURE AND AS SUCH WE ARE NOT ABLE TO CONFIRM THE ASSESSMENT ORDER. ACCORDINGLY THE DELETION OF ADDITION IS JUSTIF IED. 4. IN THE RESULT THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 21.5.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 21ST MAY 2010 ITA NOS.461 TO 464/HYD/2009 M/S ZAREEN SUITS AND SAREES HYD. 4 4 COPY FORWARDED TO: 1. ITO WARD 8(1) IT TOWERS AC GUARDS HYDERABAD 2. M/S ZAREEN SUITS & SAREES 21-2-23 PATHERGATTI HY DERABAD 3. CIT(A)- III HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP