Sri S.V.Jagan Mohan reddy, Nellore V. ACIT, Nellore

CO 15/HYD/2010

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 4686 (ITAT-HYDERABAD)
• Duration Of Justice: 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 14-05-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 22-04-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K V N CHARYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI N.R.S. GANSAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA-284/HYD/2010 A.Y. 2006-07 ACIT, CIRCLE 1, NELLORE VS SHRI S.V. JAGAN MOHAN REDDY, NELLORE (PAN AIEPS 6324 B ) (APPELLANT) (RESPONDENT) CO.15/HYD/2010 IN ITA NO.284/HYD/2010 A.Y. 2006-07 SHRI S.V. JAGAN MOHAN REDDY, NELLORE (PAN AIEPS 6324 B ) VS ACIT, CIRCLE 1, NELLORE (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.N. CHARYA, DR RESPONDENT BY : NONE O R D E R PER: CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE AND THE CROSS OB JECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER PASSE D BY THE CIT(A), GUNTUR DATED 13.11.2009 AND PERTAINS TO THE ASSESSMENT YEARS 2006-07. 2. THE REVENUE IS IN APPEAL BEFORE US FOR DELETING ADDITION OF RS.9,26,500/- MADE ON ACCOUNT OF OPENING WORK IN PROG RESS, AS IT IS ITA NO.284/HYD/2010 & CO.15/HYD/2010 SHRI S.V. JAGAN MOHAN REDDY, NELLORE 2 2 THE FIRST YEAR OF THE BUSINESS OF THE ASSESSEE. THE ASSESSEE FILED CROSS OBJECTION IN SUPPORT OF THE ORDER OF THE CIT(A). 3. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE O F SERVING OF NOTICE THROUGH ITS DEPARTMENTAL REPRESENTATIVE. W E ARE OF THE OPINION THAT THE ASSESSEE IS NOT INTERESTED TO PROSECUTE ITS CASE. ACCO RDINGLY, WE DECIDED TO ADJUDICATE THE ISSUE AFTER HEARING THE D EPARTMENTAL REPRESENTATIVE. 4. THE ASSESSEE IN THIS CASE SHOWN OPENING WORK IN PROGR ESS AT RS.9,26,500/- WHICH INCLUDES THE VALUE OF STOCK OF OIL AND LUBRICANTS, THE VALUE OF EXTRACTED MATERIALS AND THAT OF THE FINISHED MATERIALS LYING IN STOCK. ACCORDING TO THE SUBMISSION OF THE ASSESSEES COUNSEL BEFORE THE ASSESSING OFFICER, THE ASSESSEE TOOK OVER THE STOCK OF DISSOLVE D PARTNERSHIP FIRM ON CLOSING OF ITS BUSINESS AND OPENING WO RK IN PROGRESS REPRESENTS THE TOOK OVER OF THE STOCK OF THE FIRM. SI NCE THE ASSESSING OFFICER ACCEPTED THE TAKING OVER OF OTHER ASSETS AND LIAB ILITIES FROM THE PARTNERSHIP FIRM, CIT(A) WAS OF THE OPINION THAT THER E IS NO REASON TO MAKE ADDITION ON ACCOUNT OF OPENING WORK IN PROGRESS. HENCE THE REVENUE IS IN APPEAL BEFORE US. THE ASSESSEE HAS NOT PRO DUCED THE DISSOLUTION DEED, NO EVIDENCE RELATING TO THE FACT TH AT HOW THE WORK IN PROGRESS BROUGHT IN, NEITHER BOOKS OF ACCOUNTS PRODUCED NO R THE BALANCE ITA NO.284/HYD/2010 & CO.15/HYD/2010 SHRI S.V. JAGAN MOHAN REDDY, NELLORE 3 3 SHEET OF THE PARTNERSHIP FIRM HAS BEEN FURNISHED. TH E FACTS OF TAKING OVER OF STOCK IS TO BE VERIFIED W.R.T. BOOKS OF ACCOUNTS OF THE PARTNERSHIP FIRM AND DISSOLUTION DEED. THESE FACTS NOT AT ALL BROU GHT ON RECORD. AS SUCH, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ENTIRE ISSUE TO THE FILE OF ASSESSING OFFICER TO EXAMINE THESE FACTS W.R.T. THE BOOKS OF ACCOUNTS OF THE FIRM AND DISSOLUTION DEED AND DECIDE THEREUPON. THE REVENUE APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. SINCE WE HAVE SET ASIDE THE APPEAL OF THE REVENUE TO THE FILE OF ASSESSING OFFICER F OR FRESH CONSIDERATION, THE CROSS APPEAL FILED BY THE ASSESSEE BECOME S INFRUCTUOUS. ACCORDINGLY, WE DISMISS THE CROSS APPEAL FILE D BY THE ASSESSEE AS INFRUCTUOUS. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSE AND THE CROSS APPEAL FILED BY THE AS SESSEE STANDS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT 14 : 5.2010 SD- SD/- N.R.S. GANESAN CHANDRA POOJARI JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 14 TH MAY, 2010 ITA NO.284/HYD/2010 & CO.15/HYD/2010 SHRI S.V. JAGAN MOHAN REDDY, NELLORE 4 4 COPY FORWARDED TO: 1. THE ASST. CIT, CIRCLE-1, NELLORE 2. SHRI S.V. JAGAN MOHAN REDDY, 2 ND LANE, RAMALINGAPURAM, NELLORE. 3. CIT(A)- GUNTUR & CIT(A) HYDERABAD. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP