Appeal details
Counselvise Citation
[2017] 123 COUNSELVISE.COM (IT) 2813 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 year(s) 2 month(s) 5 day(s)
Appellant
Respondent
Appeal Type
Cross Objection
Pronouncement Date
17-02-2017
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
13-09-2016
Assessment Year
misc
Appeal Filed On
12-12-2013
Judgement Text
ITA NOS 1222 2015 AND OTHERS LINGAM TULSI PRASAD VIJAYAWADA PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER S.NO APPEAL NO. APPELLANT RESPONDENT A.Y 1 1222/HYD/13 DY.CIT, CENTRAL CIRCLE-3 HYDERABAD SHRI LINGAM TULSI PRASAD, VIJAYAWADA PAN :ABHPL 3789 M 2007 -08 2 1169/HYD/13 -DO- -DO- 2008 -09 3 1163/HYD/13 -DO- SHRI TUMMALA SRIRAM BABU, VIJAYAWADA, PAN:AASPT 3145C 2007 -08 4 1164/HYD/13 -DO- -DO- 2008 -09 5 1132/HYD/13 -DO- SHRI K. HARISH CHANDRA PRASAD VIJAYAWADA PAN:AHOPK 5865E 2009 -10 6 1174/HYD/13 -DO- SRI LINGAM RAVINDRA RAO, VIJAYAWADA PAN:AAMPL 1674 R 2007 -08 7 1175/HYD/13 -DO- -DO- 2008 -09 8 CO 58/H/13 (1163/H/13) SHRI LINGAM TULSI PRASAD, VIJAYAWADA PAN:ABHPL 3789M DY.CIT, CENTRAL CIRCLE-3 HYDERABAD` 2007 -08 9 CO 59/H/13 (1164/H/13) SHRI TUMMALA SRIRAM BABU, VIJAYAWADA, PAN:AASPT 3145C -DO- 2008 -09 10 CO 63/HYD/13 (1169/H/13) SHRI LINGAM TULSI PRASAD, VIJAYAWADA PAN:ABHPL 3789M -DO- 2008 -09 11 CO 68/HYD/13 (1175/H/13) SRI LINGAM RAVINDRA RAO, VIJAYAWADA PAN:AAMPL 1674 R -DO- 2007 -08 ITA NOS 1222 2015 AND OTHERS LINGAM TULSI PRASAD VIJAYAWADA PAGE 2 OF 6 12 CO 69/HYD/13 (1175/H/13) SRI LINGAM RAVINDRA RAO, VIJAYAWADA PAN:AAMPL 1674 R -DO- 2008 -09 13 CO 71/H/13 (1222/H/13) SHRI LINGAM TULSI PRASAD, VIJAYAWADA PAN :ABHPL 3789 M -DO- 2007 -08 FOR REVENUE: SHRI K.J. RAO, DR FOR ASSESSEE : SHRI M.CHANDRAMOULESWARA RAO, O R D E R PER BENCH: ALL THE ABOVE APPEALS ARE FILED BY THE REVENUE AGAI NST THE ORDERS OF THE CIT (A)-V, HYDERABAD, DATED 28.05 .2013 AND THE CROSS OBJECTIONS ARE PREFERRED BY THE RESPECTIVE AS SESSEES. 2. BRIEF FACTS LEADING TO THE ABOVE APPEALS ARE THA T THERE WAS A SEARCH AND SEIZURE OPERATION CONDUCTED U/S 13 2 OF THE I.T. ACT IN THE PREMISES OF M/S. AMR CONSTRUCTIONS LTD O N 16.12.2008 AND THE CASES OF ALL THE ASSESSEES HEREI N WERE COVERED. CONSEQUENT THERETO, THE NOTICES FOR THE AS SESSMENTS U/S 143(3) WERE GIVEN, BUT SINCE THE ASSESSEES DID NOT FILE THE REQUIRED DETAILS, THE AO COMPLETED THE ASSESSMENTS U/S 143(3 ) R.W.S. 144 OF THE I.T. ACT BY MAKING CERTAIN DISALLOWANCES AND CONSEQUENT ADDITIONS. AGGRIEVED BY THE EX-PARTE ASSESSMENTS, T HE RESPECTIVE ASSESSEES FILED APPEALS BEFORE THE CIT (A), ALONG W ITH CERTAIN INFORMATION.. TAKING THE SAME INTO CONSIDERATION, THE CIT (A) HAS PARTLY ALLOWED THE APPEALS. AGAINST THE RELIEF GRAN TED BY THE CIT (A), THE REVENUE IS IN APPEAL BEFORE US WHILE THE A SSESSEE HAS DATE OF HEARING : 08.02.2017 DATE OF PRONOUNCEMENT : 17.02.2017 ITA NOS 1222 2015 AND OTHERS LINGAM TULSI PRASAD VIJAYAWADA PAGE 3 OF 6 RAISED CROSS OBJECTIONS THAT THE RESPECTIVE ASSESSI NG OFFICERS HAVE VIOLATED THE PROVISIONS OF SECTION 127 AND 129 OF T HE ACT BY NOT ISSUING A NOTICE TO THE ASSESSEE ON CHANGE OF JURIS DICTION OF THE ASSESSEES. 3. IN THE CASES OF SHRI LINGAM TULSI PRASAD, THE RE VENUE HAS RAISED A GROUND OF APPEAL THAT THE CIT (A) HAS NOT GIVEN OPPORTUNITY TO THE AO UNDER RULES 46A AS REGARDS TH E INFORMATION FILED BY THE ASSESSEE TO EXPLAIN THE UNEXPLAINED CR EDITS IN THE CAPITAL ACCOUNT. EVEN WITH REGARD TO THE OTHER ADDI TIONS DELETED BY THE CIT (A), THE REVENUE IS AGGRIEVED THAT THE A O WAS NOT GIVEN SUFFICIENT OPPORTUNITY. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, SUBMITTED THAT THE CIT (A) HAD CALL ED FOR A REMAND REPORT FROM THE AO AND IT WAS ONLY AFTER CON SIDERING THE REMAND REPORT, THAT THE CIT (A) HAS GRANTED RELIEF TO THE ASSESSEE. HE HAS DRAWN OUR ATTENTION TO THE GROUND OF APPEAL NO.7 WHEREIN THERE IS A REFERENCE TO THE REMAND REPORT DATED 28. 02.2013. 4. THE LEARNED DR, ON THE OTHER HAND, SUBMITTED THA T THE RECORDS OF THE CIT (A) IN THE CASES OF ALL THE ASSE SSEES WERE VERIFIED AND IT IS FOUND THAT A REMAND REPORT WAS C ALLED FOR BY THE CIT (A) IN THE CASE OF SHRI LINGAM TULSI PRASAD, BU T THERE WAS NO REMAND REPORT IN THE CASE OF THE OTHER ASSESSEES. T HEREFORE, ACCORDING TO THE LEARNED DR, THE CIT (A) HAD GRANTE D RELIEF TO THE ASSESSEE WITHOUT GIVING ANY OPPORTUNITY TO THE AO A ND WITHOUT ANY BASIS. 5. ON THE CROSS OBJECTIONS, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT INITIALLY THE NOTICE U/S 15 3A HAD BEEN ISSUED AND THE INCOME TAX RETURNS HAVE BEEN FILED B Y THE ITA NOS 1222 2015 AND OTHERS LINGAM TULSI PRASAD VIJAYAWADA PAGE 4 OF 6 RESPECTIVE ASSESSEES BEFORE THE AO I.E. DCIT, CENTR AL CIRCLE-7, HYDERABAD WHO HAD THE ORIGINAL NOTIFIED JURISDICTIO N OVER THE ASSESSEES. BUT LATER ON, THE JURISDICTION HAD BEEN TRANSFERRED TO ACIT, CENTRAL CIRCLE-3, HYDERABAD, AND NOTICE DATED 9.12.2010 WAS ISSUED DIRECTING THE ASSESSEES TO APPEAR FOR TH E ASSESSMENT PROCEEDINGS ON 13.12.2010 WHICH WAS RECEIVED BY THE ASSESSEE ON THE SCHEDULED DATE AND THEREFORE, THE ASSESSEE WHO WAS RESIDING IN VIJAYAWADA COULD NOT ATTEND BEFORE THE NEW AO. I T IS SUBMITTED THAT THE AO WITHOUT GIVING THE ASSESSEES SUFFICIEN T OPPORTUNITY, HAS COMPLETED THE ASSESSMENT U/S 144 OF THE ACT AND THEREFORE, IT IS IN VIOLATION OF THE PROVISIONS OF SECTION 127 OF THE ACT. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AS STATED ABOVE, WE FIND THAT THE ASSESSEE HAS ADMITTEDLY RECEIVED N OTICES FROM THE NEW INCUMBENT OFFICER AND THEREFORE, THERE IS NO VI OLATION OF SECTION 127 OF THE ACT. HOWEVER, AS REGARDS THE CON TENTIONS THAT THE NOTICES WERE RECEIVED ONLY ON THE DATE SCHEDULE D FOR HEARING AND THEREFORE, THE ASSESSEE WAS NOT GIVEN AN OPPORT UNITY OF REPRESENTING, WE FIND THAT THE ASSESSMENTS WERE COM PLETED EX- PARTE THE ASSESSEE. THEREFORE, WE ACCEPT THE CONTEN TIONS THAT THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE FROM NON - APPEARANCE ON THE DATES FIXED BY THE NEW AO. THEREF ORE, THOUGH THE GROUND OF CROSS OBJECTION IS NOT SUSTAINABLE, W E ARE OF THE OPINION THAT THE ASSESSEES SHOULD HAVE BEEN GIVEN SUFFICIENT OPPORTUNITY OF PRESENTING THEIR CASE. 7. FURTHER, AS REGARDS THE MERITS OF THE DISALLOWANC ES, WE FIND THAT THE ASSESSEES HAVE FILED THE DETAILED SUB MISSIONS BEFORE THE CIT (A), BUT WE FIND THAT THE CIT (A) (WITHOUT EVEN CALLING FOR A REMAND REPORT FROM THE AO EXCEPT IN THE CASE OF LIN GAM TULASI ITA NOS 1222 2015 AND OTHERS LINGAM TULSI PRASAD VIJAYAWADA PAGE 5 OF 6 PRASAD) HAS GIVEN RELIEF TO THE ASSESSEE ON THE BAS IS OF THE MATERIAL, WHICH HAS NOT BEEN VERIFIED BY THE AO AND ALSO NOT EVEN CONSIDERING THE REMAND REPORT IN THE CASE OF TULASI PRASAD. THEREFORE, WE DEEM IT FIT AND PROPER TO SET ASIDE T HE ASSESSMENTS IN THE CASES OF ALL THE ASSESSEES HEREINABOVE AND D IRECT THE AO TO COMPLETE THE ASSESSMENTS DE NOVO IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVE N A FAIR OPPORTUNITY OF HEARING. WE DIRECT THE AO TO GIVE WE IGHTAGE TO THE PASSAGE OF TIME BETWEEN THE DATES OF TRANSACTIONS A ND THE DE NOVO ASSESSMENTS AS DIRECTED BY THE TRIBUNAL DUE TO WHIC H THE ASSESSEE MAY NOT BE IN A POSITION TO PRODUCE THE RE LEVANT PARTIES BEFORE AO, IF SO DIRECTED BY HIM. THE AO SHALL, THE REFORE, CONSIDER THE MATERIAL FILED BEFORE THE CIT (A) TO CONSIDER T HE ASSESSEES CONTENTION. IN VIEW OF THE SAME, THE APPEALS OF THE REVENUE IN THE CASE OF ALL THE ASSESSEES ARE SET ASIDE AND ARE TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. THE CROSS OBJECTIONS ARE DISMISSED. 8 IN THE RESULT, REVENUES APPEALS AND CROSS OBJECT IONS FILED BY THE ASSESSEES ARE TREATED AS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH FEBRUARY, 2017. SD/- SD/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 17 TH FEBRUARY, 2017. VINODAN/SPS COPY TO: 1 DY.CIT, CENTRAL CIRCLE-3 8 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 2 SRI M. CHANDRAMOULESWARA RAO CA, C-3 SKYLARK APAR TMENTS, 3- ITA NOS 1222 2015 AND OTHERS LINGAM TULSI PRASAD VIJAYAWADA PAGE 6 OF 6 6-309 BASHEERBAGH, HYDERABAD 500029 3 CIT (A)-V HYDERABAD 4 CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER
