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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 336/VIZ/2016 (Asst. Year : 2007-08) Karanam Srinivasu, vs. ITO, Ward-5(2), D.No. 13-11-8/1, Visakhapatnam. Srivaralakshmi Nivas, B.C. Road, New Gajuwaka, Visakhapatnam. PAN No. AGXPK 9243 N (Appellant) (Respondent)
Assessee by : Shri G.V.N. Hari – Advocate. Department By : Shri K.C. Das – Sr.DR
Date of hearing : 07/08/2018. Date of pronouncement : 17/08/2018. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-2, Visakhapatnam, dated 27/05/2016 for the Assessment Year 2007-08. 2. The only surviving grounds in this appeal are Ground Nos. 4 & 6 and the remaining grounds are not pressed by the assessee’s counsel, therefore, same are dismissed. 3. Ground No. 4 relating to partly sustenance of addition towards estimation of business income.
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Facts of this issue in brief are that assessee is an individual, in the business of manufacturing sheet metal items. The assessee filed return of income admitting total income of Rs. 1,13,978/-. In the assessment order, the Assessing Officer has noted that during the course of scrutiny proceedings, the statements of bank accounts held by the assessee during year under consideration have been obtained and examined. On verification of statement of ING Vysya Bank account, it was found that there were total deposits of Rs. 36,86,864.83 ps. Out of which, SB interests were at Rs. 18.83 ps., and deposits on account of cheque/ATM reversals were quantified as Rs. 5,17,241/-. Therefore, on deduction of the above amounts, the balance amount was at Rs. 31,69,605/-. When the assessee was requested to explain source for the same, he admitted them as out of the sales/turnover made from his business activity. Similarly, on verification of Andhra Bank account, there were total credits of Rs. 2,55,222/- (excluding SB interest of Rs. 14/- and opening balance of Rs. 56/-). When the assessee was requested to explain sources for the same, he admitted them also as out of the sales / turnover made from his business activity. Keeping in view of the above facts and circumstances of the case, as the assessee has not produced any
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books of account, bills, vouchers etc., the income is estimated at 15% on the total credits made to the bank accounts. 5. On appeal before the ld. CIT(A), none appeared on behalf of the assessee, however, ld. CIT(A) considered the issue on merits and the income estimated has scaled down from 15% to 10% and directed the Assessing Officer accordingly. We find no infirmity in the order passed by the ld. CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. 6. So far as ground No.6 raised by the assessee relates to telescoping benefit, ld. counsel for the assessee has submitted that ld. CIT(A) ought to have been granted telescoping benefit to the assessee. The assessee neither appeared before the ld. CIT(A) nor filed any details. Even before us, the ld. counsel for the assessee is not able to establish as to how telescoping benefit can be granted to the assessee. Therefore, request made by the ld.counsel for the assessee is rejected. 7. In the result, appeal filed by the assessee is dismissed. Order Pronounced in open Court on this 17th day of August, 2018.
Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated : 17th August, 2018.
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vr/- Copy to: 1. The Assessee – Karanam Srinivasu, D.No. 13-11-8/1, Srivaralakshmi Nivas, B.C. Road, New Gajuwaka, Visakhapatnam. 2. The Revenue – ITO, Ward-5(2), Visakhapatnam. 3. The CIT-2, Visakhapatnam. 4. The CIT(A)-2, Visakhapatnam. 5. The D.R., Visakhapatnam. 6. Guard file. By order
(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.