Siri Meghana Chits Pvt. Ltd., Karimnagar, Hyderabad V. ITO, Ward-3, Karimnagar, Karimnagar

ITA 1178/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6035 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 09-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: A V RAGHURAM
• Section: 154

Judgement Text

ITA NO 1178 OF 2016 SILI MEGHANA CHITS P LTD KARIM NAGAR PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1178/HYD/2016 (ASSESSMENT YEAR: 2009-10) M/S. SIRI MEGHANA CHITS PRIVATE LIMITED KARIMNAGAR PAN: AALCS 6133 J VS INCOME TAX OFFICER WARD-3 KARIMNAGAR FOR ASSESSEE : SHRI A.V. RAGHURAM FOR REVENUE : SMT. SUMAN MALIK, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2009-10. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE CIT (A)-2 HYDERABAD, DATED 30.06.2016 DISMISSING THE ASSESSEE S APPEAL AGAINST THE ORDER U/S 154 OF THE I.T. ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A PRIVATE LIMITED COMPANY, ENGAGED IN THE CHITS BUSINESS HAD SUFFERED LOSS AND HAS ACCORDINGLY FILED THE RETURN OF INCOME ON 3 0.09.2009 DECLARING A LOSS OF RS.5,68,632. THE ASSESSEE RECEI VED INTIMATION U/S 143(1) OF THE ACT DETERMINING THE TAXES PAYABLE AT RS.2,16,206 BY TREATING THE LOSS DECLARED BY THE AS SESSEE AS INCOME OF THE ASSESSEE. THE ASSESSEE FILED APPLICAT ION U/S 154 OF DATE OF HEARING : 14.03.2017 DATE OF PRONOUNCEMENT : 17.03.2017 ITA NO 1178 OF 2016 SILI MEGHANA CHITS P LTD KARIM NAGAR PAGE 2 OF 3 THE I.T. ACT TO CORRECT THE MISTAKE. HOWEVER, THE A SSESSEES APPLICATION WAS REJECTED BY THE CPC ON THE GROUND T HAT THERE IS NO MISTAKE APPARENT FROM RECORD. THE ASSESSEE FILED AN APPEAL BEFORE THE CIT (A) WHICH WAS DISMISSED FOR WANT OF APPEARANCE OF THE ASSESSEE BY ITS AR. THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE MISTAKE HAS OCCURRED DUE TO E-FILING OF THE ASS ESSEES RETURN OF INCOME AND THE APPLICATION FOR RECTIFICATION HAS BE EN REJECTED WITHOUT EVEN VERIFYING THE CORRECTNESS OF ASSESSEE S CLAIM. HE PRAYED THAT THE ISSUE MAY BE REMITTED TO THE FILE O F THE AO FOR VERIFICATION OF THE ASSESSEES CONTENTIONS. 4. THE LEARNED DR, HOWEVER, OPPOSED THE REMITTANCE OF THE ISSUE TO THE FILE OF THE AO. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAS E-FILED IT S RETURN OF INCOME DUE TO WHICH THE LOSS HAS ERRONEOUSLY BEEN D ECLARED AS PROFIT AND THE RECTIFICATION PETITION U/S 154 HAS A LSO BEEN REJECTED BY THE CPC WITHOUT VERIFYING THE CLAIM OF THE ASSES SEE AND WITHOUT GIVING A PERSONAL HEARING TO THE ASSESSEE. THE CIT (A) ALSO HAS NOT CONSIDERED THE ASSESSEES CONTENTIONS ON ME RIT BUT HAS DISMISSED THE APPEAL FOR WANT OF APPEARANCE BY THE ASSESSEE. IN THE INTEREST OF JUSTICE, WE DEEM IT FIT AND PROPER TO SET ASIDE THE ORDER OF THE CIT (A) AND REMIT THE ISSUE TO THE FIL E OF THE AO WITH A DIRECTION TO VERIFY THE BOOKS OF ACCOUNT OF THE ASS ESSEE AND DECIDE THE ISSUE DE NOVO IN ACCORDANCE WITH THE LAW. ITA NO 1178 OF 2016 SILI MEGHANA CHITS P LTD KARIM NAGAR PAGE 3 OF 3 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH MARCH, 2017. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 17 TH MARCH, 2017. VINODAN/SPS COPY TO: 1 SHRI A.V.RAGHU RAM & SHRI P.VINOD, ADVOCATES, 610 BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD-01 2 INCOME TAX OFFICER WARD 3 AAYAKAR BHAVAN, KARIMNA GAR 505001 3 CIT (A)-2 HYDERABAD 4 PR. CIT 2 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER