Itta/517/2014 Of Commissioner Of Income Tax-Ii v. Sri P V Sitaramaswamy Naidu

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 … Appellant Sri P.V. Sitaramaswamy Naidu,Hyderabad. ….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA ANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.517 of 2014 JUDGMENT:(per the Hon’ble the Chief Justice Sri Kalyan JyotiSengupta) We have heard Mr. S.R. Ashok, learned senior counsel appearingfor the appellant and Mr. K.Vasanth Kumar, learned counsel appearingfor the respondent. After hearing the learned counsel for the parties, we admit theappeal on the following substantial question of law: 1. Whether the learned Tribunal is justified in law in reducingthe estimated income to 5% despite the admitted percentageof estimated income is 5.8% on the total contract amounts?the estimated income to 5% despite the admitted percentageof estimated income is 5.8% on the total contract amounts? We are of the view that the learned Tribunal should not haveexercised the discretion ignoring the admission of the assessee. Whenthe assessee himself has admitted the profit at 5.8%, the Tribunal has nomaterial or reason to reduce it to 5%. Such exercise of discretion is notjudicious one. Accordingly, this appeal is allowed to the extent that the lowerauthority will work out the estimated income at 5.8% instead of 5%. Pending miscellaneous applications, if any, shall also standclosed. No costs. __________________ K.J. SENGUPTA, CJ _________________ SANJAY KUMAR, J 20[th] September, 2014 pnb