Commissioner of Income-tax-II, Hyderabad. v. P.V. Sitaramaswamy Naidu - 2014-LL-0920-1

Citation	2014-LL-0920-1
Appellant Name	Commissioner of Income-tax-II, Hyderabad.
Respondent Name	P.V. Sitaramaswamy Naidu
Court	HIGH COURT OF HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Relevant Act	Income-tax
Date of Order	20/09/2014
Judgment	View Judgment
Keyword Tags	estimated income
Bot Summary:	517 of 2014 JUDGMENT: 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. 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.

THE HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND 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. Appellant And Sri P.V. Sitaramaswamy Naidu, Hyderabad. .Respondent HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.517 of 2014 JUDGMENT: (per Hon ble Chief Justice Sri Kalyan Jyoti Sengupta) We have heard Mr. S.R. Ashok, learned senior counsel appearing for appellant and Mr. K.Vasanth Kumar, learned counsel appearing for respondent. After hearing learned counsel for parties, we admit appeal on following substantial question of law: 1. Whether learned Tribunal is justified in law in reducing estimated income to 5% despite admitted percentage of estimated income is 5.8% on total contract amounts? We are of view that learned Tribunal should not have exercised discretion ignoring admission of assessee. When assessee himself has admitted profit at 5.8%, 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 extent that lower authority will work out 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 Commissioner of Income-tax-II, Hyderabad. v. P.V. Sitaramaswamy Naidu

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