JETTY RAVIKANTH, RAJAHMUNDRY V. PRINICIPA COMMISSIONER OF INCOME TAX, VISAKHAPATNAM

ITA 120/VIZ/2022

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The case involves Jetty Ravikanth, an individual engaged in the wholesale and retail business of cigarettes, who appealed against the order of the Principal Commissioner of Income Tax (PCIT), Visakhapatnam. The appeal arose from an assessment order passed under section 143(3) of the Income Tax Act, 1961, which was later revised by the PCIT under section 263, deeming the original assessment as erroneous and prejudicial to the interest of the revenue. The PCIT directed a re-assessment to verify various claims made by the assessee regarding cash deposits and loans. However, before the Tribunal could hear the appeal, the assessee completed the revisionary assessment and requested to withdraw the appeal, which was unopposed by the Departmental Representative.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135875 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 20-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 26-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order; Assessment record
• Section: 263; 143(3); 271B

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.120/Viz/2022 (ननधधारण वर्ा / Assessment Year : 2017-18) Jetty Ravikanth D.No.35-11-12 Mangalavarapupeta Rajahmundry [PAN : AKFPJ1425M] Vs. Principal Commissioner of Income Tax Visakhapatnam (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Dr.Satyasai Rath, CIT(DR) सुनवधई की तधरीख / Date of Hearing : 21.09.2023 घोर्णध की तधरीख/Date of Pronouncement : 27.09.2023 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : This appeal is filed by the assessee against the order of Principal Commissioner of Income Tax (PCIT), Visakhapatnam-1 vide DIN & Order No.ITBA/REV/F/REV5/2021-22/1042087550(1) dated 30.03.2022, arising out of assessment order passed u/s 143(3) of the Income Tax Act, 1961 (in short ‘Act’) dated 26.12.2019 for the Assessment Year (A.Y.) 2017-18. 2 I.T.A. No.120/Viz/2022, A.Y.2017-18 Jetty Ravikanth, Rajahmundry 2. Brief facts of the case are that the assessee, an individual engaged in purchase and sale of cigarettes on wholesale and retail business, filed it’s return of income for the A.Y.2017-18 on 04.11.2017, declaring taxable income of Rs.10,88,020/- under the heads income from business or profession and income from other sources. The case was selected for limited scrutiny under CASS to verify the issue of cash deposit during the demonetization period. The assessment was completed u/s 143(3) of the Act and assessment order was passed by the Assessing Officer (AO) on 26.12.2019 by assessing income at Rs.26,99,012/- after estimating the income on enhanced turnover. 3. Under the powers vested with the PCIT as per the provisions of section 263 of the Act, the Ld.PCIT called for the assessment records and examined the same and held that the assessment completed for the A.Y.2017-18 u/s 143(3) dated 26.12.2019 is not only erroneous but also prejudicial to the itnerest of the revenue. He, therefore, set aside the assessment to the file of the assessing officer to verify the assessee’s claims i.e. (i) the cash deposits reflected in all of his bank accounts represents the assessee’s business turnover (ii) the credits reflected to the extent of Rs.6,94,04,860/- are loans raised by the assessee (ii) the credits reflected in all of his bank accounts to the extent of 3 I.T.A. No.120/Viz/2022, A.Y.2017-18 Jetty Ravikanth, Rajahmundry Rs.6,18,36,000/- on account of inter-bank transfers within his own accounts and (iv) to invoke penalty u/s 271B of the Income Tax Act, 1961 as per the directions and directed the AO to afford sufficient opportunity to the assessee and pass consequential order. 3. Aggrieved by the order of the Ld.PCIT, the assessee preferred an appeal before the Tribunal and by the time the appeal came up for hearing the assessee filed a letter dated 20.09.2023 before the Tribunal and submitted that the Assessing Officer had completed the revisionary assessment proceedings and passed the assessment order u/s 143(3) r.w.s. 263 of the IT Act, 1961 for the Assessment Year 2017-18 and hence, the assessee pleaded for withdrawal the appeal filed against the order u/s 263 of the Act for the A.Y.2017-18 passed by the Ld.PCIT, Visakhapatnam for which the Ld.DR has not raised any objection. 4. We have heard both the parties and perused the material available on record. Since the assessee filed a letter before the Tribunal and submitted that the Assessing Officer had completed the revisionary assessment proceedings and passed the assessment order u/s 143(3) r.w.s. 263 of the IT Act, 1961 for the Assessment Year 2017-18 and pleaded for withdrawal of the appeal filed against the order u/s 263 of 4 I.T.A. No.120/Viz/2022, A.Y.2017-18 Jetty Ravikanth, Rajahmundry the Act for the A.Y.2017-18 passed by the Ld.PCIT, Visakhapatnam, we have no hesitation to permit the assessee for withdrawal of the appeal filed against the order u/s 263. 5. In the result, appeal of the assessee is dismissed as withdrawn. Order pronounced in the open court on 27 th September, 2023. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 27.09.2023 L.Rama, SPS की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee – Shri Jetty Ravikanth, D.No.35-11-12, Mangalavarapupeta, Rajahmundry 2. रधजस्व/The Revenue – The Principal Commissioner of Income Tax, Visakhapatnam 3. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 4..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam