Shakthi Constructions, , Hyderabad V. Dy. Commissioner of Income Tax, Circle-11(1), Hyderabad

ITA 1208/Hyd/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4543 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 11-02-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 13-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MURTHI NAIK
• Assessee Lawyers: A V RAGHURAM
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 133A

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE S MT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S . RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 1 208 /H YD/201 7 ASSESSMENT YEAR: 20 06 - 07 SHAKTHI CONSTRUCTIONS, HYDERABAD. PAN A B EFS8747H VS. DY. COMMISSIONER OF INCOME - TAX , CIRCLE 1 1 (1) , HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI A.V. RAGHURAM REVENUE BY : S HRI MURTHI NAIK DATE OF HEARING : 0 7 - 0 2 - 201 9 DATE OF PRONOUNCEMENT : 15 - 0 2 - 201 9 O R D E R PER S . RIFAUR RAHMAN, A .M.: TH IS APPEAL FILED BY ASSESSEE IS DIRECTED AGAINST THE ORDER O F CIT(A) 7 , HYDERABAD, DATED 07 / 11 /201 6 FOR AY 20 06 - 07 . 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE FIRM ENGAGED IN THE BUSINESS OF CONSTRUCTION OF HOUSE FOR PRIVATE INDIVIDUALS, FILED ITS RETURN OF INCOME ON 3 0 /10/20 06 FOR AY 20 06 - 07 ADMITTING A TOTAL INCOME OF RS. 8,57,660 / - . A SURVEY OPERATION U/S 133A OF THE INCOME - TAX ACT, 1961 (IN SHORT THE ACT) WAS C ONDUCTED ON 08/03/2007 AND THE CASE WAS CONVERTED INTO SCRUTINY. THE AO OBSERVED THAT DURING THE ASSESSMENT PROCEEDINGS, THE AR PRODUCED BOOKS OF ACCOUNTS WHICH WERE NOT SUPPORTED BY PROPER VOUCHERS AND HENCE, ESTIMATED THE INCOME AT 10% OF THE GROSS RECEI PTS AND THE INCOME WAS ASSESSED AT RS. 17,80,725/ - . 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). 2 ITA NO . 1208 /HYD/201 7 SHAKTHI CONSTRUCTIONS, HYD. 4. THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE BY OBSERVING THAT TH OUGH SUFFICIENT OPPORTUNITIES GIVEN TO ASSESSE E, THE ASSESSEE DID NOT APPEAR FOR ANY HEARING AFTER DUE SERVICE OF NOTICES , HENCE, NOT INTERESTED IN PURSUING THE APPEAL. 5. AGG RIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 6. IN THE GROUNDS OF APPEAL, THE ASSESSEE SUBMITTED THAT THE CIT(A) DISMISSED THE APPEAL IN - LIMINE, WHICH IS IN GROSS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE, AS HE COULD HAVE GIVEN PR OPER OPPORTUNITY TO THE ASSESSEE TO REPRESENT ITS CASE. 7. REFERRING TO THE GROUNDS OF APPEAL, LD. AR SUBMITTED THAT THE LEARNED CIT(A) DECIDED THE MATTER EX - PARTE AND, THEREFORE, IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED TO THE FILE OF CIT (A) FOR DECIDING VARIOUS GROUNDS OF APPEAL ON MERITS. THE LEARNED DR OBJECTED TO THE AFORESAID STATEMENT OF THE LEARNED AR. 7. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE ARE OF THE VIEW THAT INTEREST OF JUSTICE WILL BE SERVED I F THE MATTER IS RESTORED TO THE FILE OF FIRST APPELLATE AUTHORITY FOR DECIDING VARIOUS GROUNDS OF APPEAL OF THE ASSESSEE ON MERITS. ACCORDINGLY, THE CIT(A) IS DIRECTED TO AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEREAFTER DECIDE TH E APPEAL ON MERITS. 8 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY , 201 9. SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 15 TH FEBRUARY, 2 01 9. KV 3 ITA NO . 1208 /HYD/201 7 SHAKTHI CONSTRUCTIONS, HYD. COPY TO: - 1) SHAKTHI CONSTRUCTIONS, C/O S/SHRI K. VASANTKUMAR, AV RAGHURAM, P. VINOD & M. NEELIMA DEVI, ADVOCATES, 610 BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD 500 001. 2) DCI T, CIRCLE 11(1), IT TOWERS, AC GUARDS, MASABTANK, HYDERABAD 04. 3) CIT(A) 7 , HYDERABAD. 4) PR. CIT - 7 , HYD . 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE