SHYAM SUNDER RAVINUTHALA,HYDERABAD vs. ITO., WARD-10(1), HYDERABAD

ITA 1232/HYD/2024Status: DisposedITAT Hyderabad28 January 2025AY 2016-17Bench: Shri Manjunatha G. (Accountant Member), Shri K.Narasimha Chary (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the AO erred in aggregating contract receipts and advances without considering the assessee's books and treating advances as income in the same year. It also held that estimating profit on gross receipts and disallowing expenses simultaneously is contradictory. Finally, it confirmed the addition for Chapter VI-A deduction due to lack of evidence.

What were the facts?

The assessee, a salaried employee, filed his return for AY 2016-17 declaring income of Rs.8,33,600. The case was selected for scrutiny, and the Assessing Officer (AO) made additions for estimated profit on contract receipts and disallowed expenses. The CIT(A) upheld these additions.

What were the issues?

Whether advances received were correctly treated as income for the current year, and whether simultaneous estimation of profit on gross receipts and disallowance of expenses is permissible.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench, Hyderabad

Before: Shri Manjunatha G. & Shri K.Narasimha Chary

Hearing: 22/01/2025

PER. MANJUNATHA G., A.M: This appeal filed by the assessee is directed against the order dated 30.09.2024 of the learned Commissioner of Income Tax (Appeals) [Ld.CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, pertaining to A.Y.2016-17. 2. The brief facts of the case are that the assessee, a salaried employee filed his return of income for the A.Y.2016-17 on 31.03.2017, declaring total income of Rs.8,33,600/-. The case was selected for scrutiny under CASS to verify ‘whether contract

2 Shyam Sunder Ravinuthala receipts / fees have been correctly offered to tax’. Notice u/s 143(2) of the Inco

The order continues below.

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