THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.517 of 2014 DATED:20.9.2014 Between:
Commissioner of Income Tax-II, Hyderabad.
And Sri P.V. Sitaramaswamy Naidu, Hyderabad.
… Appellant ….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR
I.T.T.A.No.517 of 2014
JUDGMENT: (per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta)
We have heard Mr. S.R. Ashok, learned senior counsel appearing for the appellant and Mr. K.Vasanth Kumar, learned counsel appearing for the respondent.
After hearing the learned counsel for the parties, we admit the appeal on the following substantial question of law:
1. Whether the learned Tribunal is justified in law in reducing the estimated income to 5% despite the admitted percentage of estimated income is 5.8% on the total contract amounts?
We are of the view that the learned Tribunal should not have exercised the discretion ignoring the admission of the assessee. When the assessee himself has admitted the profit at 5.8%, the Tribunal has no material or reason to reduce it to 5%. Such exercise of discretion is not judicious one.
Accordingly, this appeal is allowed to the extent that the lower authority will work out the estimated income at 5.8% instead of 5%.
Pending miscellaneous applications, if any, shall also stand closed. No costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J 20th September, 2014 pnb