Itta/302/2014 Of The Commissioner Of Income Tax-Vi v. Sri Palla Karunakar Reddy

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.302 OF 2014 DATED:05.6.2014 Between: The Commissioner of Income Tax-VIHyderabad … Appellant And Palla Karunakar ReddyProprietorSupreme Wines19-126, Main RoadDevarakondaNalgonda District … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA ANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.302 OF 2014 JUDGMENT:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is directed against the judgment of the learnedTribunal dt.31.5.2013 and is sought to be admitted on the followingsuggested questions of law. (A)“Whether on the facts and in the circumstances of the case, theAppellate Tribunal is correct in making estimation of income at acertain percentage on ‘cost of goods sold’, when the actual issueinvolved is determination of ‘suppression ofsales/understatement of sales’?Appellate Tribunal is correct in making estimation of income at acertain percentage on ‘cost of goods sold’, when the actual issueinvolved is determination of ‘suppression ofsales/understatement of sales’? (B)Whether the Appellate Tribunal, having accepted that there wassuppression of sales, was correct in giving relief to the assesseeby way of estimation of net profit at 5% of sales made during theyear instead of sustaining the addition made towards differencein sales determined at 127% of cost of goods sold and salesadmitted by the assessee ?suppression of sales, was correct in giving relief to the assesseeby way of estimation of net profit at 5% of sales made during theyear instead of sustaining the addition made towards differencein sales determined at 127% of cost of goods sold and salesadmitted by the assessee ? We have heard Sri S.R. Ashok, learned Senior Advocate,appearing for the appellant – Revenue, and gone through theimpugned judgment and order of the learned Tribunal. The learned Tribunal has rendered the impugned judgmentfollowing its earlier decision in the case of M/s. Amaravati Wine Shop,in ITA No.1196/Hyd/2011, dated 8.6.2012, on the same issue. One ofthe similar matters was appealed against and the appeal wasdismissed by this Court. costs. Hence, this appeal is dismissed. There will be no order as to ________________________ K.J. SENGUPTA, CJ _______________________ SANJAY KUMAR, J 5.6.2014bnr