Pushpa Devi Rathi, Hyderabad V. Income Tax Officer, Ward-9(4), Hyderabad

ITA 1141/Hyd/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9616 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 04-11-2019
• Assessment Year: 2016-2017
• Appeal Filed On: 15-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 68; 142(1); 143(2)

Judgement Text

ITA NO 1141 OF 2019 PUSHPA DEVI RATHI HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B SMC BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1141/HYD/2019 ASSESSMENT YEAR: 2016-17 SMT. PUSHPA DEVI RATHI HYDERABAD PAN:ADQPR6675M VS. INCOME TAX OFFICER WARD 9(4) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY : SRI ANIL SANT, DR DATE OF HEARING: 04/11/2019 DATE OF PRONOUNCEMENT: 08/01/2020 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2016-17 AGAIN ST THE ORDER OF THE CIT (A)-7, HYDERABAD, DATED 6.5.20 19. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN DIVIDUAL FILED HER RETURN OF INCOME FOR THE RELEVANT A.Y ON 29.09.2016 DECLARING TOTAL INCOME OF RS.3,19,140/-. THE CASE W AS SELECTED FOR SCRUTINY UNDER CASS FOR THE REASON THAT LOW INCOME FROM TCS RECEIPTS HAS BEEN DECLARED AND WHETHER THE INCOME F ROM SCRAP HAS BEEN CORRECTLY OFFERED TO TAX. ACCORDINGLY, NOT ICES U/S 143(2) AND 142(1) WERE ISSUED CALLING FOR RELEVANT INFORMA TION. HOWEVER, SINCE NONE APPEARED FOR THE ASSESSEE, THE ASSESSMEN T WAS COMPLETED BY ESTIMATING THE PROFIT FROM BUSINESS OF M/S. BALAJI COAL CORPORATIONS AT 3% OF THE TOTAL SALES AND ALSO BRINGING THE UNSECURED LOANS OF RS.5,94,641/- TO TAX U/S 68 OF T HE I. T. ACT. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRMED THE ORDER OF THE AO AND THE ASSESSEE IS I N SECOND ITA NO 1141 OF 2019 PUSHPA DEVI RATHI HYDERABAD. PAGE 2 OF 3 APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS B OTH ON FACTS AND IN LAW. 2. THE LEARNED CIT (A) ERRED IN CONFIRMING THE ADDI TION OF RS.5,94,641/- MADE BY THE AO U/S 68 OF THE I.T. ACT. 3. THE LEARNED CIT (A) ERRED IN CONFIRMING THE ESTI MATION OF INCOME AT 3% OF THE TURNOVER. 4. THE LEARNED CIT (A) ERRED IN CONFIRMING LEVY OF INTEREST U/S 234D OF RS.15,744/-. 5. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. 3. THE LD COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE CIT (A) WHILE THE LD DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. IT IS SEEN THA T THE ASSESSEE HAD FILED THE COPIES OF THE AUDITED BOOKS OF ACCOUN TS BEFORE THE CIT (A) TO DEMONSTRATE THAT THE NET PROFIT FOR THE AYS 2013-14 TO 2015-16 WAS 0.94%, 0.73% AND 1.29% RESPECTIVELY AND THAT THE NET PROFIT OFFERED FOR THE RELEVANT AY 2016-17 WAS @ 1.2% WHICH IS REASONABLE AND THAT THE RATE ADOPTED BY THE AO AT 3 % IS NOT COMPARABLE AND EXCESSIVE. I FIND THAT THE CIT (A) H AS OBSERVED THAT THE ASSESSEE HAS FAILED TO SUBSTANTIATE THE CL AIM AND THAT THE ASSESSEE DID NOT FURNISH ANY DETAILS AND THEREFORE, HAS REJECTED THE ASSESSEES CLAIM. SIMILARLY, WITH REGARD TO THE INCREASE IN THE UNSECURED LOANS ALSO, THE ASSESSEE HAD EXPLAINED TH AT THE ASSESSEE HAS FILED THE DETAILS OF THE UNSECURED LOA NS AT THE BEGINNING OF THE YEAR, DURING THE YEAR AND MADE PAY MENT ALONG WITH INTEREST. THE ASSESSEE HAD ALSO CLAIMED THAT I T MADE PAYMENT OF INTEREST OF RS.14,80,862/- BUT THE CIT ( A) HAS NOT CONSIDERED ANY OF THESE SUBMISSIONS BUT HAS MERELY HELD THAT THE SAME IS NOT SUBSTANTIATED WITH ANY OF THE DETAILS. THE ASSESSEE HAS FILED THE PAPER BOOK BEFORE THE TRIBUNAL CONTAI NING THE ITA NO 1141 OF 2019 PUSHPA DEVI RATHI HYDERABAD. PAGE 3 OF 3 WRITTEN SUBMISSIONS FILED BY THE ASSESSEE BEFORE TH E CIT (A) AND ALSO IT RETURNS FOR THE AYS 2016-17 AND THE DETAILS OF UNSECURED LOANS FOR THE AYS 2015-16, 2014-15 AND 2013-14. IN MY OPINION, THE CIT (A) OUGHT TO HAVE CONSIDERED AND EXAMINED T HE INFORMATION FILED BY THE ASSESSEE. IN VIEW OF THE S AME, I DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE A O WITH A DIRECTION TO THE ASSESSEE TO FILE ALL THE DETAILS B EFORE THE AO WHO SHALL RECONSIDER THE ISSUE ON MERITS AFTER GIVING T HE ASSESSEE A FAIR OPPORTUNITY OF HEARING. 4. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JANUARY, 2020. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 8 TH JANUARY, 2020. VINODAN/SPS COPY TO: 1 SMT. PUSHPA DEVI RATHI, H. NO.4-44 VIKAS NAGAR CO LONY, DILSUKHNAGAR, HYDERABAD 500060 2 ITO WARD 9(4) IT TOWERS, AC GUARDS, HYDERABAD 3 CIT (A)-7 HYDERABAD 4 PR. CIT 7 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER