Mr.B.Shivram Krishna, Hyderabad V. Dy.CIT, Central Circle-6, Hyderabad

ITA 1075/HYD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6044 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-03-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 16-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: S MR T CHAITANYA KUMAR
• Keywords: Search and seizure; Assessment record
• Section: 143(3); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO. A.Y. APPELLANT RESPONDENT 1073/H/2013 2004 - 05 MR. B. SHIVRAM KRISHNA, HYDERABAD. PAN ABXPB3931A DCIT CENTRAL CIRCLE-6 HYDERABAD. 1074/H/2013 2005 - 06 1075/H/2013 2006 - 07 1076/H/2013 2008 - 09 ITA.NO. A.Y. APPELLANT RESPONDENT 578/H/2014 2004 - 05 MRS. B. SRINAGA MUNESWARI, HYDERABAD. PAN ABXPB8533D DCIT CENTRAL CIRCLE-6 HYDERABAD. 579/H/2014 2005 - 06 FOR ASSESSEES : MR. T. CHAITANYA KUMAR FOR REVENUE : MR. B. KURMI NAIDU DATE OF HEARING : 02 . 03 .201 6 DATE OF PRONOUNCEMENT : 02 .0 3 .2016 ORDER PER SMT. P. MADHAVI DEVI, J.M. ALL ARE ASSESSEES APPEALS FOR THE A.YS. 2004- 05 TO 2008-09. ALL THESE APPEALS ARE AGAINST THE CONFIRMATION BY THE LD. CIT(A) OF THE ADDITIONS MAD E BY THE A.O. DURING THE ASSESSMENT PROCEEDINGS UNDER SE CTION 143(3) READ WITH SECTION 153C OF THE I.T. ACT, 1961 . 2. BRIEF FACTS OF THE CASE ARE THAT THERE WAS A SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF T HE I.T. ACT IN THE CASE OF M/S. RADHA REALTY GROUP ON 2 ITA.NOS.1073 TO 1076/H/2013 MR. B. SHIVRAM KRISHNA, HYD ITA.NO.578 & 579/H/2014 SMT. B. SRINAGA MUNESWARI, HYD. 17.10.2008. CONSEQUENT TO THE SAID SEARCH OPERATION , A NOTICE UNDER SECTION 153C WAS ISSUED TO THE ASSESSE ES HEREIN, IN RESPONSE TO WHICH, THE ASSESSEES FILED T HEIR RETURNS OF INCOME ADMITTING NIL INCOME. THEREAF TER, THE A.O. COMPLETED THE ASSESSMENTS UNDER SECTION 143(3) READ WITH SECTION 153C OF THE I.T. ACT, MAKING CERT AIN DISALLOWANCES AND THE CONSEQUENTIAL ADDITIONS. AGGR IEVED, ASSESSEES PREFERRED APPEALS BEFORE THE LD. CIT(A) W HO GRANTED PARTIAL RELIEF TO THE ASSESSEES. AGAINST TH E CONFIRMATION OF THE ADDITIONS BY THE LD. CIT(A), TH E ASSESSEES ARE IN APPEAL BEFORE US. ALONG WITH FORM- 36, THE ASSESSEE HAS RAISED VARIOUS GROUNDS OF APPEAL A GAINST THE ADDITIONS CONFIRMED BY THE LD. CIT(A). SUBSEQUE NTLY, VIDE LETTER DATED 27.02.2015, THE ASSESSEE HAS RAIS ED ADDITIONAL GROUND OF APPEAL CHALLENGING THE JURISDI CTION UNDER SECTION 153C OF THE I.T. ACT, ON THE GROUND T HAT NO SATISFACTION AS REQUIRED UNDER SECTION 153C OF THE ACT WAS RECORDED. SINCE THE ADDITIONAL GROUNDS OF APPEAL AR E LEGAL GROUNDS AND THE FACTS RELATING TO THE ISSUE ARE ALS O PART OF THE ASSESSMENT RECORD, THE SAID ADDITIONAL GROUNDS ARE ADMITTED. 3. ON RECEIPT OF THE ADDITIONAL GROUNDS OF APPEAL MENTIONED ABOVE, THE LD. D.R. HAD REQUESTED THE A.O . TO SUPPLY COPIES OF THE SATISFACTION NOTE RECORDED AT THE TIME OF MAKING ASSESSMENT UNDER SECTION 153C OF THE I.T. ACT, IN THE CASE OF BOTH THE ASSESSEES. AT THE TIME OF H EARING I.E., ON 02.03.2016, THE LD. D.R. SUBMITTED A COPY OF THE LETTER OF THE A.O. DATED 05.02.2016 STATING THAT HE HAS 3 ITA.NOS.1073 TO 1076/H/2013 MR. B. SHIVRAM KRISHNA, HYD ITA.NO.578 & 579/H/2014 SMT. B. SRINAGA MUNESWARI, HYD. GONE THROUGH THE ASSESSMENT RECORDS AND OBSERVED TH AT THERE IS NO SATISFACTION FOUND IN THE CASE RECORD O F THE ASSESSEE FOR THE A.YS. 2004-05 AND 2005-06 IN THE C ASE OF SMT. B. SRINAGA MUNESWARI AND FOR THE A.YS. 2004-05 TO 2006-07 AND 2008-09 IN THE CASE OF MR. B. SHIVRAM KRISHNA. COPIES OF THE SAID LETTERS ARE ALSO FILED BEFORE US TODAY I.E., ON 02.03.2016. 4. TAKING NOTE OF THESE SUBMISSIONS OF THE LD. D.R., WE ARE INCLINED TO ALLOW THE ADDITIONAL GROUN DS OF APPEAL AND HOLD THAT THE JURISDICTION OF THE A.O. U NDER SECTION 153C IS VOID ABINITIO AS THE RECORDING OF THE SATISFACTION IS THE CONDITION PRECEDENT FOR INITIAT ING PROCEEDINGS UNDER SECTION 153C OF THE I.T. ACT. IN VIEW OF THE SAME, WE DO NOT SEE ANY REASON TO ADJUDICATE TH E OTHER GROUNDS OF APPEAL. IN THE RESULT, ASSESSMENTS IN THE CASE OF MR. B. SHIVRAM KRISHNA FOR ALL THE ASSESSME NT YEARS BEFORE US AS WELL AS IN THE CASE OF SMT. B. S RINAGA MUNESWARI FOR THE A.YS. 2004-05 AND 2005-06 ARE QUASHED AS VOID ABINITIO. 5. IN THE RESULT, APPEALS OF THE ASSESSEES FOR ALL THE ASSESSMENT YEARS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 02.03.2016. SD/- SD/- (S. RIFAUR RAHMAN) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 02 ND MARCH, 2016 VBP/- 4 ITA.NOS.1073 TO 1076/H/2013 MR. B. SHIVRAM KRISHNA, HYD ITA.NO.578 & 579/H/2014 SMT. B. SRINAGA MUNESWARI, HYD. COPY TO : 1. MR. B. SHIVRAM KRISHNA, PLOT NO.25, 8 - 2 - 603/1/25, KRISHNAPURAM ROAD, ROAD NO.10, BANJARA HILLS, HYDERABAD. 2. MRS. B. SRINAGA MUNESWARI, PLOT NO.25, 8-2-603/1/25, KRISHNAPURAM ROAD, ROAD NO.10, BANJARA HILLS, HYDERABAD. 3. DCIT, CENTRAL CIRCLE - 6, 7 TH FLOOR, AAYAKAR BHAVAN, NEAR L.B. STADIUM, HYDERABAD. 4. CIT(A), GUNTUR 5 . CIT(A) - I , HYDERABAD. 6 . CIT - (CENTRAL) , HYDERABAD 7 . D.R. ITAT B BENCH, HYDERABAD. 8 . GUARD FILE