Appeal details
Counselvise Citation
[2021] 107 COUNSELVISE.COM (IT) 4511 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 2 month(s) 18 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
07-09-2021
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB-A
Next Hearing Date
02-06-2021
Assessment Year
2010-2011
Appeal Filed On
20-06-2019
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 1021 /HYD/20 19 (ASSESSMENT YEAR : 20 10 - 11 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 16(1), HYDERABAD. ..APPELLANT. VS. M/S. LANCO HILLS TECHNOLOGY PARK PVT. LTD. HYDERABAD. PAN AABCL 1228R ..RESPONDENT. APPELLANT BY : SHRI ASHOK KARDAM (D.R.) RESPONDENT BY : SHRI P. MURALI MOHANA RAO. DATE OF HEARING : 02.06 . 2021. DATE OF PRONOUNCEMENT : 07 .09 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 201 0 - 11 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 4 , HYDERABAD S ORDER DT. 30.03.2019 PASSED IN CASE NO. 10169/17 - 18/ACIT, CIR. 16(1)/CIT(A) - 4/HYD/18 - 19 IN PROCEEDINGS UNDER SECTION 143(3) R.W.S 147 OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 1021/HYD/2019 HEARD B OTH THE PARTIES . C ASE FILE PERUSED. 2. THE REVENUE RAISES THE FOLLOWING TWIN SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL : 2. LD. CIT(A) ERRED IN ALLOWING THE GROUND OF THE ASSESSEE PERTAINING TO REOPENING OF THE ASSESSMENT STATING THAT THE SAME ON ACCOUNT OF CHANGE OF OPINION WHEN THE ASSESSING OFFICER HAS NOT FORMED ANY OPINION ON THE ISSUE OF REVERSAL ON ACCOUNT OF PR ICE REVISION AND CANCELLATION. 3. LD. CIT(A)ERRED IN HOLDING THAT THE REOPENING IS BAD IN LAW WITHOUT APPRECIATING THE FACT THAT THERE IS FAILURE ON THE PART OF THE ASSESSEE TO DISCLOSE FULLY AND TRULY, THE MATERIAL FACTS NECESSARY FOR THE ASSESSMENT D ONE ORIGINALLY U/S. 143(3) OF THE ACT. 4. LD. CIT(A) ERRED IN AD M ITTING THE ADDITIONAL EVIDENCES / SUBMISSIONS WITHOUT REMANDING TO THE ASSESSING OFFICER WHICH IS IN CONTRAVENTION TO THE PROVISIONS OF RULE 46A. 3. WE NEXT NOTE THAT THE CIT(A)S DETAILED DISCUSSION QUASHING THE IMPUGNED REOPENING AS WELL AS GRANTING RELIEF TO THE ASSESSEE ON MERITS ALLOWED AS UNDER : 3 ITA NO. 1021/HYD/2019 -- SPACE LEFT INTENTIONALLY -- 4 ITA NO. 1021/HYD/2019 5 ITA NO. 1021/HYD/2019 6 ITA NO. 1021/HYD/2019 7 ITA NO. 1021/HYD/2019 8 ITA NO. 1021/HYD/2019 9 ITA NO. 1021/HYD/2019 10 ITA NO. 1021/HYD/2019 11 ITA NO. 1021/HYD/2019 4. WE HAVE HEARD RIVAL PLEADINGS AND PERUSED THE CASE FILE. WE NOTE FIRST OF ALL THAT THE ASSESSING OFFICER RECORDED THE FOLLOWING REASONS FOR FORMING HIS OPINION THAT THE ASSESSEES TAXABLE INCOME HA D ESCAPED ASSESSMENT : IT IS GATHERED FROM THE INFORMATION AVAILABLE WITH THIS OFFICE THAT THE ASSESSEE WAS DEBITED AN AMOUNT OF RS.113,19,93,808/ - TOWARDS REVERSAL ON ACCOUNT OF CANCELLATION AND PRICE REVISION; AND FINALLY REPORTED A BOOK LOSS OF RS.38,28,51,371/ - . THE REDUCTION OF RS.113,19,93,828/ - TOWARDS REVERSAL ON ACCOUNT OF CANCELLATION AND PRICE REVIS ION FROM THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2010 IS IRREGULAR, THE SAME NEED TO BE BROUGHT TO TAX. 12 ITA NO. 1021/HYD/2019 IN VIEW OF THE ABOVE, I HAVE REASON TO BELIEVE THAT INCOME HAS ESCAPED ASSESSMENT AS PER THE PROVISIONS OF SECTION 147 OF THE IT ACT. 5. THERE IS HARDLY ANY DISPUTE THAT WE ARE IN ASSESSMENT YEAR 2010 - 11 WHEREIN THE ASSESSING OFFICER HA D FRAMED HIS SECTION 143(3) REGULAR ASSESSMENT ON 27.12.2012 FOLLOWED BY RECORDING OF THE FOREGOING REASONS CULMINATING IN ISSUANCE OF SECTI O N 148 NOTICE DT.31.3.2016. THIS IMPUGNED REOPENING THEREFORE HAS BEEN INITIATED BEYOND THE SPECIFIED PERIOD OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR IN LIGHT OF SECTION 147(1) 1 ST PROVISO. THE SA ID PROVISO ST IPULATES THAT SUCH A REOPENING WOULD ONLY BE INITIATED IF IT IS FOUND THAT THE ASSESSEE HAD NOT DISCLOSED ALL THE RELEVANT PARTICULARS FULLY AND TRULY BEFORE THE ASSESSING OFFICER IN THE FIRST ROUND. LEARNED CIT - DR TO DISPUTE THAT THE ASSESSING OFFICERS SOLE REOPENING REASON HAS P LACED RELIANCE ON THE ASSESSEE'S BOOKS ONLY REGARDING REVERSAL ON ACCOUNT OF CANCELLATION AND PRICE REVISION (SUPRA). WE THEREFORE QUOTE HONBLE BOMBAY HIGH COURTS LANDMARK DECISION IN HINDUSTAN LEVER LIMITED VS. 13 ITA NO. 1021/HYD/2019 R.B. WADEKAR (2014) 268 ITR 332 (BOM) THAT AN ASSESSING OFFICER S REOPENING REASONS HAVE TO BE READ ON STANDALONE BASIS; AS IT IS, WITHOUT ANY SCOPE OF FURTHER IMPROVEMENT AT A LATTER STAGE BY WAY OF ADDITION, DELETION OR SUBSTITUTION THEREIN. WE THUS QUOTE THAT TO CONCLUDE THAT THE IMPUGNED REOPENING HAS BEEN RIGHTLY QUASHED BY THE CIT(A) AS A MERE CHANGE OF OPINION ONLY. ALL THIS RENDERS THE LATTER ISSUE ON MERITS AS ACADEMIC . NO OTHER ARGUMENT HAS BEEN PRESSED BEFORE US. 6. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH SEPT . , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 07 .09 . 2 021. * REDDY GP COPY TO : 1. M/S. LANCO HILLS TECHNOLOGY PARK PVT. LTD., 99LH, LANCO HILLS, MANIKONDA, HYDERABAD - 500 089 2. DCIT, CIRCLE 16(1), HYDERABAD. 3. PR. C I T - 4 , HYDERABAD. 4. CIT(APPEALS) - 4, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER
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