NAGELLY ASHOK REDDY,HYDERABAD vs. INCOME TAX OFFICER, WARD-6(5), HYDERABAD

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ITA 726/HYD/2018Status: DisposedITAT Hyderabad17 August 2021AY 2013-142 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found no merit in the assessee's appeal, stating that the estimation was justified due to the lack of proper books of accounts and documentary evidence. The assessee's net profit could not be relied upon.

What were the facts?

The assessee appealed against the estimation of 4% of liquor sales by the lower authorities after rejecting his books of accounts. The assessee failed to maintain proper books of accounts and furnish documentary evidence for expenses.

What were the issues?

Whether the estimation of income by the assessing officer was justified when the assessee failed to maintain proper books of accounts and provide supporting evidence for expenses.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, HYDERABAD BENCHES : BENCH “B” HYDERABAD

Before: SHRI S.S. GODARA & SHRI L.P. SAHU

Hearing: 07/06/2021Pronounced: 17/08/2021

For Assessee: Smt. S. Sandhya, AR For Revenue: Sri Rohit Mujumdar, DR Date of Hearing : 07/06/2021 Date of Pronouncement : 17/08/2021 O R D E R PER S.S. GODARA, J.M. This assessee’s appeal arises against the CIT(A)-6, Hyderabad’s order dated 03.10.2017 in case no.0080/2016-17 for AY 2013-14, involving proceedings u/s 143 (3) of the Income Tax Act, 1961 [ in short ‘the Act’ ].

Heard both the parties. Case file perused. 2. The assessee’s sole substantive grievance challenging correctness of both the lower authorities action estimating 4% of its total liquor sales; after rejecting his books of accounts. He has placed reliance on the following decisions : i) (Sai Cine Wine Vs. ITO) ii) 1198/Hyd/2015 (M/s. Sai Venkateshwara Wines) AY 2013-14 Sri Nagelly Ashok Reddy iii) 725/Hyd/2015 (Venkateshwara Wines)

3.

We find no merit in the assessee's stand since he has not even maintained books of accounts in the liquor trading business. It is further seen that the assessee had further failed to furnish documentary evidences of various expenses claimed, net profit disclosed in the P&L a/c cannot be relied upon. We thus quote hon’ble jurisdictional high court’s larger bench decision CIT vs B.R.Constructions (1993) 202 ITR 222 (AP) that such an estimation not discussing all the relevant facts does not form a binding precedent. This assessee’s appeal is dismissed. . Pronounced in Open Court on 17th August 2021.

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