M/s. Vyapthi Communications P. Ltd, Hyd, Hyderabad V. ITO Ward -3(2), Hyderabad

ITA 1079/HYD/2011

• Counselvise Citation: 107922514 RSA 2011
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2000-2001
• Appeal Filed On: 06-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R B NAIK
• Assessee Lawyers: A V RAGHURAM
• Keywords: Opportunity of being heard; TDS
• Section: 147; 144; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBE R BASHA, ACCOUNTANT MEMBER ITA NO.1079/HYD/2011 : ASSESSMENT YEAR 2000-01 M/S.VYAPTHI COMMUNICATION PVT. LTD., HYDERABAD. (PAN: AACFV 7452 M) VS ITO, WARD-3(2), HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.V. R AGHU RAM RESPONDENT BY: SHRI R.B. NAI K DATE OF HEARING: 27-9-2011 DATE OF PRONOUNCEMENT:14-10-2011. O R D E R PER AKBER BASHA, AM:- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER OF THE CIT (A)-IV, HYDERABAD DATED 15-4-2011 AND IT PERTAINS TO THE ASSESSMENT YEAR 2000-01. 2. THE GROUNDS RAISED BY THE ASSESSEE READ AS UNDER :- 1. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE ORDER OF THE CIT (A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE CIT (A) FAILED TO APPRECIATE THE FACT THAT T HE TDS WAS MADE TWICE ON THE SAME AMOUNT AND THEREBY ERRED IN CONFIRMING THE ADDITION OF THE DIFFERENCE BETWEE N ITA NO.1079 OF 2011 VYAPTHI COMMUNICATIONS PVT. LTD. ====================== 2 RECEIPTS IN P & L A/C AND TDS CERTIFICATES AT RS.14,37,418/- TO THE INCOME OF THE APPELLANT. 3. THE CIT (A) ERRED IN DECIDING THE APPEAL WITHOU T CONSIDERING THE CLARIFICATION FILED BY THE APPELLAN T ON DIFFERENCE OF RECEIPTS ON ADVERTISEMENTS AND TDS CERTIFICATES VIDE LETTER DATED 14-3-2001 ISSUED BY THE SYNERGIES-DOORAY AUTO MATIVE LTD., ALONG WITH APPEA L FILED BEFORE CIT (A) ON MERE LETTER OF THE AO THAT SUCH CLARIFICATION IS NOT AVAILABLE ON THE RECORDS FOR T HE ASST. YEAR 1999-2000. 4. THE CIT (A) OUGHT TO HAVE DIRECTED THE AO TO CRO SS CHECK THE VERACITY OF LETTER OF SYNERGIES-DOORAY IN THE INTEREST OF RENDERING JUSTICE EVEN ASSUMING THAT IT WAS NOT FOUND IN THE INCOME TAX RECORDS FOR ASSESSMENT YEAR 1999-2000 THOUGH FILED DURING THE COURSE OF ASSESSMENT. 5. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE A SSESSEE COMPANY FILED ITS RETURN OF INCOME ON 29-11-2000 DE CLARING A TOTAL INCOME OF RS. NIL UNDER NORMAL PROVISIONS OF INCOME -TAX ACT AFTER CLAIMING A SET OFF OF UNABSORBED BUSINESS LOSS OF R S.12,480/- AND RS.18,440/- UNDER SECTION 115JA OF THE ACT. THE RE TURN WAS PROCESSED UNDER SECTION 143(1) ON 25-1-2001 GRANTIN G A REFUND OF RS.1,95,520/-. AS VERIFIED FROM THE PROFIT AND LO SS ACCOUNT FILED BY THE ASSESSEE A SUM OF RS.1,00,67,772/- WAS CREDI TED TOWARDS ITA NO.1079 OF 2011 VYAPTHI COMMUNICATIONS PVT. LTD. ====================== 3 ADVERTISING RECEIPTS AS AGAINST RS.1,15,05,190/- AS PER THE TDS CERTIFICATES ENCLOSED ALONG WITH THE RETURN OF THE ASSESSEE FIRM FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. HENCE, THE ASSESSING OFFICER DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT RS.12,98,250/- AS AGAINST NIL INCOME RETURNED VIDE HIS ORDER DATED 29-11-2006 PASSED UNDER SECTION 144 READ WITH SECTI ON 147 OF THE ACT. AGGRIEVED AGAINST THE ORDER OF THE ASSESSING O FFICER, THE ASSESSEE WENT IN APPEAL BEFORE THE CIT (A). ON AP PEAL, THE CIT (A) HELD THAT THE ASSESSEE HAS NOT BEEN ABLE TO SUB STANTIATE ITS CONTENTION THAT THE TDS WAS DEDUCTED TWICE ON ANY A MOUNT. ACCORDINGLY, THERE IS NO EVIDENCE CONTRARY TO THE C ONCLUSION DRAWN BY THE ASSESSING OFFICER THAT THE ASSESSEE HAD NOT ACCOUNTED FOR THE ADVERTISING RECEIPTS OF RS.14,37,418/-. UNDER T HE CIRCUMSTANCES, THE CIT (A), UPHOLDING THE ACTION OF THE ASSESSING OFFICER, THE ADDITION OF RS.14,37,418/- WAS SUSTAIN ED AND THE GROUNDS RAISED IN THIS APPEAL WERE DECIDED AGAINST THE ASSESSEE. FURTHER AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT (A) FAILED TO APPRECIATE THE FACT THAT THE TDS WAS MADE TWICE ON THE SAME AMOUNT AND THEREBY ERRED IN CONFI RMING THE ADDITION OF THE DIFFERENCE BETWEEN RECEIPTS IN PROF IT AND LOSS ACCOUNT AND TDS CERTIFICATES AT RS.14,37,418/- TO T HE INCOME OF THE ASSESSEE COMPANY AND THE CIT (A) IS NOT JUSTIF IED IN DECIDING THE APPEAL WITHOUT CONSIDERING THE CLARIFICATION FI LED BY THE ASSESSEE ON DIFFERENCE OF RECEIPTS ON ADVERTISEMENT S AND TDS CERTIFICATES VIDE LETTER DATED 14-3-2001 ISSUED BY THE SYNERGIES- ITA NO.1079 OF 2011 VYAPTHI COMMUNICATIONS PVT. LTD. ====================== 4 DOORAY AUTO MATIVE LTD., ALONG WITH APPEAL FILED BE FORE CIT (A) ON MERE LETTER OF THE ASSESSING OFFICER THAT SUCH CLAR IFICATION IS NOT AVAILABLE ON THE RECORDS FOR THE ASSESSMENT YEAR 19 99-2000. IT IS FURTHER SUBMITTED THAT THE CIT (A) OUGHT TO HAVE DI RECTED THE ASSESSING OFFICER TO CROSS CHECK THE VERACITY OF LE TTER OF SYNERGIES- DOORAY IN THE INTEREST OF RENDERING JUSTICE EVEN AS SUMING THAT IT WAS NOT FOUND IN THE INCOME TAX RECORDS FOR ASSESSM ENT YEAR 1999-2000 THOUGH FILED DURING THE COURSE OF ASSESSM ENT. 5. ON THE OTHER HAND THE LEARNED DEPARTMENTAL REPRESENTATIVE WHILE OPPOSING THE ARGUMENTS OF THE LEARNED COUNSEL FOR THE ASSESSEE FULLY SUPPORTED ON THE ORD ERS OF THE AUTHORITIES BELOW. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF THE RIVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE F IND THAT THE CIT (A) IS NOT JUSTIFIED IN DECIDING THE APPEAL WITHOUT CONSIDERING THE CLARIFICATION FILED BY THE ASSESSEE ON DIFFERENCE O F RECEIPTS ON ADVERTISEMENTS AND TDS CERTIFICATES VIDE LETTER DAT ED 14-3-2001 ISSUED BY THE SYNERGIES-DOORAY AUTO MATIVE LTD., AN D NOT JUSTIFIED IN REJECTING THE CLAIM OF THE ASSESSEE ON MERE LETT ER OF THE ASSESSING OFFICER THAT SUCH CLARIFICATION IS NOT AV AILABLE ON THE RECORDS FOR THE ASSESSMENT YEAR 1999-2000. WE SEE MERIT IN THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE CIT (A) OUGHT TO HAVE DIRECTED THE ASSESSING OFFICER TO CRO SS CHECK THE VERACITY OF LETTER OF SYNERGIES-DOORAY IN THE INTER EST OF RENDERING JUSTICE EVEN ASSUMING THAT IT WAS NOT FOUND IN THE INCOME TAX ITA NO.1079 OF 2011 VYAPTHI COMMUNICATIONS PVT. LTD. ====================== 5 RECORDS FOR ASSESSMENT YEAR 1999-2000 THOUGH FILED DURING THE COURSE OF ASSESSMENT. AFTER CONSIDERING THE TOTALIT Y OF FACTS OF THE CIRCUMSTANCES OF THE CASE, WE FEEL IT PROPER AND JU ST TO REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FO R RE-CONSIDERING THE ISSUE AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TR EATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE COURT ON 14- 10-2011. SD/- SD /- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT ACCOUNTANT MEMBER DT.14-10-2011. COPY FORWARDED TO: 1. 2. 3. 4. 5. C/O S/SRI K. VASANT KUMAR, A.V. RAGHU RAM, P. VINOD & B. PEDDI REDDY, ADVOCATES, FLAT NO. 610, 6 TH FLOOR, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD. ITO, WARD-3(2), HYDERABAD. CIT (A)-IV, HYDERABAD. CIT, AP, HYDERABAD. THE DR, ITAT, HYDERABAD. JMR* ITA NO.1079 OF 2011 VYAPTHI COMMUNICATIONS PVT. LTD. ====================== 6 ITA NO.1079 OF 2011 VYAPTHI COMMUNICATIONS PVT. LTD. ====================== 7