ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), HYDERABAD V. RITHWIK PROJECTS PRIVATE LIMITED , HYDERABAD

ITA 534/HYD/2020

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax, Central Circle 2(2), Hyderabad against Rithiwik Projects (P) Ltd concerning the assessment year 2012-13. The appeal was directed against the order of the CIT (A)-12, Hyderabad, which had found the reassessment proceedings to be void ab initio due to defective reasons. The Revenue contended that the CIT (A) erred in not adjudicating on the merits regarding unexplained investments amounting to Rs.1,71,50,000. However, both parties acknowledged that the tax effect was below the Rs.60 lakhs threshold set by the CBDT Circular, leading to the dismissal of the appeal without further examination of the substantive issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 125964 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Laws Referred To: CBDT Circular No.9/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Unexplained investment; Tax effect; Liquidation

Judgement Text

" ITA No 534 of 2020 Rithiwik Projects P Ltd Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ SM/DB-A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.534/Hyd/2020 (िनधाŊरण वषŊ/Assessment Year: 2012-13) ACIT Central Circle 2(2) Hyderabad Vs. Rithiwik Projects (P) Ltd Hyderabad PAN: AABCR5748L (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri P Murali Mohan Rao, CA राज̾ व Ȫारा/Revenue by:: Smt. U Mini Chandran, DR सुनवाई की तारीख/Date of hearing: 22/04/2025 घोषणा की तारीख/Pronouncement: 22/04/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the Revenue is directed against the order dated, 07/07/2020 of the learned CIT (A)-12, Hyderabad for the A.Y. 2012-13. 2. The Revenue has raised the following grounds of appeal: “1. The learned CIT (A) erred both in law and on facts of the case. 2. The learned CIT (A) erred in holding that the reasons to believe are defective and that the re-assessement proceedings are ab initio void without adjudicating on ITA No 534 of 2020 Rithiwik Projects P Ltd Page 2 of 3 merits the issue of unexplained investments of Rs.1,71,50,000/-. 3. The learned CIT (A) erred in holding that the reasons to believe are based on mere suspicion and not ascertained facts as the Assessing Officer had used the word ‘probably’ with reference to the source of the sum of Rs.1,71,50,000/- being liquidation of assets. 4. The learned CIT (A) ought to have considered the entire facts narrated in the reasons to believe and the fact that the Assessing Officer had categorically recorded that the sum of Rs.1,71,50,000/- credited in the books of M/s. Pushpadent Infrastructures Ltd is not genuine. 5. The learned CIT (A) erred in interpreting various judicial decisions and relating them to the facts of the case. The learned CIT (A) ought to have considered that sufficiency of reasons are not open to question in a court of law and that at the time of reopening escapement of income is not required to be established”. 3. Thus, the total tax effect as per Form-36 is Rs.55,64,318/-. The learned DR as well as the learned AR of the assessee has accepted the fact that the tax effect in this appeal of the Revenue is below the monetary limit of Rs.60 lakhs provided in CBDT Circular No.9/2024 dated 17/09/2024 and therefore, this appeal of the Revenue is not maintainable and liable to be dismissed as withdrawn. We further note that as per para-5 of the CBDT Circular No.9/2024, it is also applicable to the appeals pending on the date of this circular. For ready reference, para 2 and 5 of the circular is reproduced as under: ITA No 534 of 2020 Rithiwik Projects P Ltd Page 3 of 3 4. Accordingly, this appeal of the Revenue is not maintainable due to the tax effect below the threshold limit provided in Circular No.9/2024 and consequently, the same is dismissed. 5. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Open Court on the conclusion of hearing i.e. on 22nd April, 2025. Sd/- Sd/- (MANJUNATHA, G) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 22nd April, 2025 Vinodan/sps Copy to: S.No Addresses 1 Asstt. Commissioner of Income Tax, Central Circle 2(2) Room No.616, 6th Floor, Aayakar Bhavan, Basheerbagh, Hyderabad 500004 2 M/s. Rithwik Projects (P) Ltd, Plot No.37 & 39, Road No.2, Navodaya Colony, Banjara Hills, Hyderabad 500034 3 Pr. CIT – Central, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "