HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.295 OF 2014 DATED:05.6.2014 Between:
The Commissioner of Income Tax-VI Hyderabad … Appellant And M/s. Vishal Wines Naim Nagar Hanamkonda Warangal District … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.295 OF 2014 JUDGMENT: (per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is directed against the judgment of the learned Tribunal dt.31.1.2013 and is sought to be admitted on the following suggested questions of law.
(A) “Whether, the ITAT is correct in law in making estimation of income at a certain percentage on ‘cost of goods sold’ when the actual issue involved is determination of ‘suppression of sales/understatement of sales’?
(B) Whether, the ITAT, having accepted that there was suppression of sales, was correct in giving relief to the assessee by way of estimation of net profit at 5% of ‘cost of goods sold’ during the year instead of sustaining the addition made towards difference in sales determined at 127% of cost of goods sold and sales admitted by the assessee ?
(C) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is correct in resorting to estimation of income at 5%, on the goods sold instead of affirming the income as assessed by the assessing officer by estimating the sales turnover ?
(D) Whether the conclusion of the appellate tribunal that the profit realization of the assessee should be fixed at the prescribed percentage of the cost of the stock put for sale can be said to be based on material on record?”
We have heard Sri S.R. Ashok, learned Senior Advocate, appearing for the appellant – Revenue, and gone through the impugned judgment and order of the learned Tribunal.
The learned Tribunal has rendered the impugned judgment following its earlier decisions in the case of I.T.O. Vs. M/s. Pittala
Yakaiah, Nalgonda & Others, in ITA No.2191/Hyd/2011, dt.13.4.2012 and also in the case of M/s. Amaravati Wine Shop, in ITA No.1196/Hyd/2011, dated 8.6.2012, on the same issue. One of the matters was appealed against and the appeal was dismissed by this Court.
Hence, this appeal is dismissed. There will be no order as to costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J 5.6.2014 bnr