M/s Rajendra constructions, Kakinada V. THE DCIT., CENTRAL CIRCLE, Rajahmundry

CO 141/VIZ/2013

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 1090 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 28-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M N M NAIK SR
• Assessee Lawyers: N O N E
• Keywords: Search and seizure; Tax effect

Judgement Text

ITA NO.629&CO NO.141/VIZAG/2013 M/S. RAJENDRA CONSTRUCTIONS, KAKINADA IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO. 629 /VIZAG/ 2013 ASSESSMENT YEAR : 2009-10 DCIT CENTRAL CIRCLE, RAJAHMUNDRY VS. M/S. RAJENDRA CONSTRUCTIONS KAKINADA (APPELLANT) (RESPONDENT) PAN NO.AAPFM 6404P C.O. NO.141/VIZAG/2013 (ARISING OUT OF ITA NO.629/VIZAG/2013) ASSESSMENT YEAR : 2009-10 M/S. RAJENDRA CONSTRUCTIONS KAKINADA VS. DCIT CENTRAL CIRCLE, RAJAHMUNDRY (APPELLANT) (RESPONDENT) ASSESSEE BY: N O N E REVENUE BY: SHRI M.N.M. NAIK, SR.AR DATE OF HEARING : 31.07.2015 DATE OF PRONOUNCEMENT : 31.07.2015 ORDER THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJE CTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 25.7. 2013 PASSED BY LD. CIT(A) GUNTUR AND THEY RELATE TO THE ASSESSMENT YEA R 2009-10. 2. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN GRANTING RELIEF TO THE EXTENT OF RS.3,77,980/- OUT OF THE AD DITION RELATING TO UNDISCLOSED SALE CONSIDERATION. 3. THE ASSESSEE HAS MOVED A PETITION SEEKING ADJOUR NMENT. HOWEVER, SINCE THE TAX EFFECT INVOLVED IN THE APPEAL FILED B Y THE REVENUE IS LESS THAN RS.3 LAKHS, I PROCEED TO DISPOSE OF THE APPEALS EX-P ARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. ITA NO.629&CO NO.141/VIZAG/2013 M/S. RAJENDRA CONSTRUCTIONS, KAKINADA 2 4. THE ASSESSING OFFICER MADE AN ADDITION OF RS.4,8 7,980/- TOWARDS UNDISCLOSED SALE CONSIDERATION ON SALE OF FLATS. T HE LD. CIT(A) SUSTAINED THE ADDITION TO THE EXTENT OF RS.1,10,000/- AND ACCORDI NGLY DELETED THE BALANCE ADDITION OF RS.3,77,980/-. AGGRIEVED BY THE SAME, BOTH THE REVENUE AND ASSESSEE HAVE COME ON APPEAL BEFORE ME. 5. SO FAR AS THE REVENUES APPEAL IS CONCERNED, THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT IS LESS THAN RS.3 LAKHS AND HEN CE IN VIEW OF INSTRUCTION NO.3/2011 DT.9.2.2011 ISSUED BY THE CBDT CIRCULAR, THE REVENUE IS PRECLUDED FROM PREFERRING APPEAL BEFORE THE TRIBUNAL. ACCORD INGLY, I DISMISS THE APPEAL FILED BY THE REVENUE IN LIMINI AS UN-ADMITTED. 6. WITH REGARD TO THE CROSS OBJECTION FILED BY THE ASSESSEE, I NOTICE THAT THE LD. CIT(A) HAS SUSTAINED THE ADDITION TO THE EX TENT OF RS.1,10,000/- BY CONSIDERING THE ESTIMATE MADE BY THE APPROVED VALUE R. I NOTICE FROM THE ASSESSMENT ORDER THAT THE ASSESSING OFFICER HAS MAD E IMPUGNED ADDITION ON THE BASIS OF INCRIMINATING MATERIAL FOUND DURING TH E COURSE OF SEARCH AND SEIZURE PROCEEDINGS, WHICH SHOWED THAT THE ASSESSEE HAS BEEN COLLECTING MORE MONEY THAN THE RECORDED CONSIDERATION. HENCE, I NOTICE THAT THE LD. CIT(A), IN THE ABSENCE OF PROPER DETAILS FURNISHED BY THE ASSESSEE, HAS ESTIMATED THE COST OF CONSTRUCTION AND ACCORDINGLY SUSTAINED THE ADDITION OF RS.1,10,000/-. HENCE, I DO NOT FIND ANY INFIRMITY I N THE ORDER PASSED BY THE LD. CIT(A). 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AN D THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2015 SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER VG/SPS VISAKHAPATNAM, DATED 31 ST JULY, 2015 ITA NO.629&CO NO.141/VIZAG/2013 M/S. RAJENDRA CONSTRUCTIONS, KAKINADA 3 COPY TO 1 THE DCIT, CENTRAL CIRCLE, NEAR KAMBALA TANK, VEER ABHADRAPURAM, RAJAHMUNDRY 2 M/S. RAJENDRA CONSTRUCTIONS, 5-3-25, SURYARAOPET, KAKINADAQ 3 THE CIT, GUNTUR 4 THE CIT(A), GUNTUR 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM