Sujana Universal Industries Limited, ... vs Assessee

Page 1 of 4 ITA Nos.1620 and 1192 Sujana Universal Hyderabad

2. Briefly stated, assessee is a company engaged in the

business of manufacturing of bearings, home appliances and

trading of steel products. Assessee company filed its return of

income on 12.10.2010 admitting a total income of

Rs.6,46,88,351 before adjusting set off of brought forward loss

under normal provisions and a book profit of Rs.6,40,43,182 u/s

115JB of the I.T. Act, 1961.

3. In the course of the assessment proceedings, AO directed

the assessee to furnish information and documents in support of

the entries in its audited results and the return of income. AO

also issued a detailed show cause letter dated 31.1.2013 to the

assessee specifying these requirements. However, assessee failed

to produce any of these details. Under the circumstances, AO

rejected the books of accounts since it was not possible to arrive

at the correct income of the assessee from the books of accounts

stated to have been maintained by the assessee.

4. AO estimated the net income at 1.5% of the total turnover.

Aggrieved, assessee preferred appeal before the first appellate

authority. The ld CIT (A) upheld the order of the AO and rejected

the books of accounts.

Page 2 of 4

ITA Nos.1620 and 1192 Sujana Universal Hyderabad

5. The CIT (A) held as follows:

"9..........The AO estimated the income at 1.5% of the total turnover of the appellant. For the preceding A.Y 2009-10 in the appellant's own case, I had, in my order in ITA No.465/AC 3(2)/CIT (A)-IV/2011-12 dated 22.1.2013 under similar circumstances, directed the AO to estimate the income of the appellant at 1% of the turnover"

6. We find that the issue is covered by the decision of the ITAT

Coordinate Bench, in assessee's own case in ITA Nos. 304 &

305/Hyd/2013 for the A.Y 2009-10. The relevant portion of the

decision at para 10 of the order is extracted below:

"10. Considering the submissions of the parties and keeping in view the interest of justice, we allow one more opportunity to the assessee for production of its books of accounts and other documents before the Assessing Officer to substantiate its claim and accordingly, set aside the Order of the CIT(A) and remit the matter to the file of the Assessing Officer for denovo assessment after examining the books of accounts and other documents. We also direct the assessee to produce all its books of accounts, documents, bills, invoices and any other information called for by the Assessing Officer and cooperate in finalisation of the proceeding. In the event, the assessee does not co- operate by producing the books of accounts and other information called for by the Assessing Officer or if the Assessing Officer on examination of the books of accounts and other documents finds that there are discrepancies which the assessee is not able to explain, the Assessing Officer would be at liberty to take an independent decision in the matter in accordance with law. The Assessing Officer shall afford a reasonable opportunity of being heard to the assessee".

7. Respectfully following the decision of the Coordinate Bench,

in assessee's own case for A.Y 2009-10, we set aside the issue to

Page 3 of 4 ITA Nos.1620 and 1192 Sujana Universal Hyderabad

the file of the AO to decide the matter after giving one more

opportunity to the assessee. Both the appeals are allowed for

statistical purposes.

Order pronounced in the Open Court on 18th March, 2015.

Sd/- Sd/- (P.M. Jagtap) (Asha Vijayaraghavan) Accountant Member Judicial Member

Hyderabad, dated 18th March, 2015.

Vnodan/sps Copy to:

1. P. Murali & Co. CA, 6-3-655/2/3 1st Floor, Somajiguda, Hyderabad 500082

2. ACIT Circle 3(2) Hyderabad

3. The CIT(A)-IV Hyderabad

4. The CIT - III Hyderabad

5. The DR, ITAT, Hyderabad

6. Guard File

By Order

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