Itta/403/2006 Of Uttam Chand Sethai v. The Asst. Commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD WEDNESDAY THE SEVENTH DAY OF JUNETWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI tNcOME TAX TRIB UNAL APPEAL NO: 403 OF 2006 (lncome Tax Tribunal Appeal Under Section 260 of the lncome Tax Act, against theorder of the lncome Tax Appellate Tribunal, Hyderabad Bench ' B ', Hyderabad inlT(S.S.) A.No., 109Hyderabadl2003, Block period 1991-92 to 2001-02, dated27 -02:2006, preferred against the Order of the Commissioner of lncomeTax(Appeals) - I Hyderabad, Appeal No.0412lCC-5, Hyd. C|T(A)-1102-03, dated30-06-2003, preferred against the order of the Assistant commissioner of lncomeTax Central Circle-S, Hyderabad, PAN/GlR No.K-704ICC-5 , dated 22-02-2022) Between: Uttam Chand Sethai, S/o Jawarilal Sethai Rl/o Plot no.63, Temple Rock Enclave,Tadbund, Secunderabad. ...APPELLANTAND The Asst. Commissioner of lncome Tax, Central Circle 5, Sakkar Bhavan, Hyderabad.Tax ,, The Asst. Commissioner of lncome ...RESPONDENT Counsel for the Appellant: Mr. CHALLA GUNARANJAN Counsel for the Respondent: Ms. K. MAMATA CiOUOlny The Court made the following: THtr IoN'BLE THE CHIEF IUSTICE UIIAL }iI]UY_ANAND ,FtE HON'BLE SRI IUSTICE N.TLKAR.ANII I.T.T.A.No.403 of 2006 JUDGVENT [ti\ ][tt,' ][t ][t)n'blc ][lhe ][t.hi,1 ][loti;c [ttlo/Bhryan1] lle rrd \ r. Challa Gr.uraranjan, leamed counsel':, rr t1e appellant and N4s. K.N rrnata Choudary, leamed Senior Star dirLg Cbunsel,Inconre Thx D rpartment lror the respondent. 2. This aop :al has been preferred by the assesser rs the appellantunder Se<:tion 2(,0A of the Income Tax Act, t961 the Act'i:riefly hereinafter) :rqr irsr the order darcd27.02.2006 passe: ry rhe IncomeTa-x Appellatc' ['ribunal, ]Hyderabad Bench'B', I{yderrbad (brietly theTribtural' her-ei rafter) rn I.T.(S.S.)ANo.109/H1d,/20 ):' for the blockperiod t9tlt- 1!) [t2 ],,, 2aal2aa2. 3. 'fhc,ug:r hs eppeal was admimed on 13.1C.2005. no substantialquestions oi h' [,.rere ]framed. However, we find that i:r tle memo ofappeal, appell,rr t has proposed the following questio::; as substantialquesti()ns lf ar': 1. \Xhether r n the facts and in the circumstan,:es of tlre t:ase, the'methoc ;rco1 reJ ior arriving the profit and income lr uot )erverseand u.'huns ic: I i'methoc ;rco1 reJ ior arriving the profit and income lr uot )erverseand u.'huns ic: I i / 2. \Xthether on the facu [and ][in ][the ][circumstances ][of ][the ][case, ][the]order of the Income [Tax ][Appellate ][Tribunal ][is ][pervene, ]"bi'oty,without any basis, illegal and [a ][prejudicial one ][?] 3. [lXihether ]on the facts [and ][in ][the ][circumstances ][of ][the ][case, ][when]comparable cases disclosing [a ][profit ][rate ][of ][5olo ][and even ][Iess ][are]relied by the appellant [before ][the ][xsessing ][officer ][and ][more]panicularly the case of [P.Koteshwar ][Rao ][in ][similar ][illegal trade, the]Appellate Tribunal trnoring [them could ][hold ][artitmrilyand ][without]any basis that the profit [rate adopted ][bythe ][assessing ][o{ficer at l5'/o]is fair and right and [whether such ][a ][finding, ][not ][based ][on ][any]material or comparable [cases' ][could ][be ][justified ][and ][not pervene ][?]4. [\X4rether ]on the [facts and ][in ][the ][circumstances ][of ][the ][case, ][the]finding of the Appellate [Tribunal that ][the ][asssessing ][officer ][was ][not]only considerate but [also conservarive ][in ][estimating ][the ][profit ][at]15olo is based on any [material ][evidence ][or ][comparable ][cases ][when]assessing officer [himself ][does ][not ][rely ][on ][any comparable ][cases ][to]esrirrDte profit at [15olo ][and ][r+rether ][such ][finding ][is ][illegal, artrfurary]without any basis and unjust [?] 5. \flhetier on the [fafis ][and ][in ][the ][circumstances ][of ][the ][case, the]finding of the Tribunal [that ][telescoping ][could ][not ][be ][allowed ][as]claimed by the appellant [in ][respect ][of ][Rs'4,05,125l- ][is ][perverse']illegal without any [basis ][and ][unjust ][as ][cash seized ][is very ][much]related to ttle undisclosed [income ][eamed ][by the ][appellant during]this rrear which was available [in ][cash ][and ][in ][view ][of ][the decision ][of],/fi [Suprr^, ][C-ourt ][in l23ITR457 (Sg ][it ][is ][very much ][real ][income]available and as such no addition [of it ][could ][be ][made ][?] 6. Whether on the facts and [in ][the ][circumstances ][of ][the ][case, ][the]Tribunal was nght in reiecting [the ][claim ][of ][t}le ][appellant ][for] a To, exclusi,)n o[ R;.5,46,000 being cash found at the tim: >f s earc].r asfon-ninq [,:rr of the income from trading in the rlrs,:nc,: of thefin,ling rn r c, p,:ct of arl, other solrrce of income ? lmpus113 i rrder of the Tribunal dated 27.02.2C0,. is a common 4 order passed i r I.T.(S.S.)ANos.1O8, 109, 112, a:nd lL3/H,d/2a$.By a seDant( older passed today, this [(ilun ]lras dismissedI.T.T.I\.No.4C. r:f 2006 filed by one Vijay Raj Sethia a 3airst the saidcommon,rrder drted 27.A2.20A6 passed bythe Iriburrrl ir, respect ofI.T.(S.S.)A..No a)/Hyd/2aa3 for the block pe;ir:d l99l-1992rc 24c1.-2)0;The qr.restions of law raised in borh tht:se appealsbeing simLlar, t lc prcsent appeal can also be dismis;e 1c,n the verysame rcaso ns. 5. .\cc.rrcin ;l'i rhis appeal is dismissed. No costs \s rr :;e < u,:1, miscel.laneous peritions, pendin u if any, stand /'Sd/,K SRINIVASA "'()IN /iTRUE COPY//ex)SEC]'ION OFFICER closed 1. Tlre [lnr;or ][.ttr ][Tax ][Appellate ][Tribunal' ][Hyde^': ][cacl Bench ]['B"]Hyderat,atHyderat,at2The Cornr [is,sioner ][of ][lncome Tax(Ap peals) ][- ][lllyJerabad']aThe Assil [tant]Commissioner [of ][lncome][ Tar ][rlentral ][Circle-5']Hyderatra, ,aThe Assil [tant]Commissioner [of ][lncome][ Tar ][rlentral ][Circle-5']Hyderatra, , ,One CC [to ][Mr.]CHALLA GUNARANJAN, [Advocate [r-tl:'1":]] 4 One [(lC ][[o ][Vlr;]K. IUAIVATA [CHOUDARY' ][Advocittt ][[oPUC]]'fwo ('l) (' rPiCSDI,'fwo ('l) (' rPiCSDI, 6 HIGH COURT DATED:07/06/20:23 ORDERITTA.ltlo.403 of 200r DISMISSIN(I ['IIIE ],\P 'I A1- /a-\ _-'-Nt,'t.a')-'21? /..... -a [-a'- ][-']ri-,4 :..,I7-l11il l\lt [2t8]rt tl.:.'" ').' "-"'