Koripalli Venkata Srinivas Vs ITO (ITAT Visakhapatnam)
The Visakhapatnam ITAT dismissed the assessee’s appeal against the order of the National Faceless Appeal Centre for Assessment Year 2017-18, both on the ground of a 691-day delay in filing the appeal and on merits. The assessee, engaged in aquaculture, had filed a return declaring net income of ₹10,12,920/-. The case was selected for limited scrutiny to examine large cash deposits in the bank account. During assessment proceedings under Sections 143(2) and 142(1), the Assessing Officer (AO) sought information and obtained bank statements under Section 133(6).
The assessee stated that aquaculture was carried on over land owned by his parents, that no regular books of account were maintained due to practical difficulties in dealing with small farmers, and that income had been estimated under Section 44AD. While the assessee claimed gross aquaculture receipts of ₹1.90 crore, the AO found bank credits of ₹2.36 crore from prawn processing units. Observing that gross receipts exceeded ₹2 crore, the AO held that the assessee was required to maintain books of account and obtain an audit under Section 44AB. The AO adopted ₹2.36 crore as gross receipts and estimated income at 8%, resulting in income of ₹18.93 lakh before allowing Chapter VI-A deductions.
