SRI RAGHAVENDRA LORRY SERVICES,VUJAYAWADA vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1), VIJAYAWADA

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ITA 41/VIZ/2020Status: DisposedITAT Visakhapatnam16 August 2022AY 2010-117 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessee did not maintain proper books of accounts and could not prove ownership of assets for depreciation, the AO was justified in estimating profit. However, the estimation of 15% was considered high.

What were the facts?

The assessee, a transport operator, filed a return showing a loss. The AO rejected the books of accounts, estimated income at 15% of gross receipts, and allowed depreciation. The CIT invoked Section 263, setting aside the assessment and directing disallowance of depreciation.

What were the issues?

Whether the estimation of income by the AO at 15% of gross receipts was justified, and if a lower estimation rate, as per previous ITAT orders, should be applied.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 250

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Appellant: CA प्रत्यधथीकीओरसे/
Hearing: 25/07/2022

आदेशकीप्रतिलिपिअग्रेपिि/Copy of the order forwarded to:- ननधधाररती/ The Assessee–M/s. Sri Raghavendra Lorry Services, 1. H.No.74, CTO Colony, Gurunanak Colony Road, Vijayawada, Andhra Pradesh – 520008. रधजस्व/The Revenue –DCIT, Circle-3(1), CR Buildings, MG Road, 2. Vijayawada, Andhra Pradesh – 520002.

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