Sravani Institute of Medical Sciences private Limited , Hyderabad V. Income Tax Officer, Ward-3(3), Hyderabad

ITA 1237/Hyd/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8755 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 08-07-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 11-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V APARNA
• Assessee Lawyers: S RAMA RAO
• Section: 40(a)(ia)

Judgement Text

ITA NO 1237 OF 2018 SRAVANI INSTITUTE OF MEDICAL SC IENCES P LTD HYDERABAD. PAGE 1 OF 4 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.1237/HYD/2018 (ASSESSMENT YEAR: 2013-14) SRAVANI INSTITUTE OF MEDICAL SCIENCES (P) LTD HYDERABAD PAN:AAMCS7791M VS INCOME TAX OFFICER WARD 3 (3) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SMT. V. APARNA, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAIN ST THE ORDER OF THE CIT (A)-3, HYDERABAD, DATED 11.04. 2018. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY IN WHICH PUBLIC ARE NOT SUBSTANTIALLY INTER ESTED AND IS MAINTAINING A HOSPITAL WITH ATTACHED PHARMACY. THE ASSESSEE E- FILED ITS RETURN OF INCOME FOR THE A.Y 2013-14 ADMI TTING INCOME OF RS.28,948/-. ON SELECTION OF RETURN OF INCOME FOR S CRUTINY UNDER CASS, THE ASSESSMENT U/S 143 (3) OF THE ACT WAS TAK EN UP AND AFTER VERIFICATION OF THE BOOKS OF ACCOUNT AND OTHE R DETAILS FILED BY THE ASSESSEE, THE AO OBSERVED THAT THE ASSESSEE HAS NOT DEDUCTED TAX AT SOURCE FROM PAYMENTS TO A TOTAL OF RS.50,70, 033/-. DATE OF HEARING : 08.07.2019 DATE OF PRONOUNCEMENT: 12.07.2019 ITA NO 1237 OF 2018 SRAVANI INSTITUTE OF MEDICAL SC IENCES P LTD HYDERABAD. PAGE 2 OF 4 THEREFORE, HE MADE A DISALLOWANCE OF RS.8,67,088/- U/S 40(A)(IA) OF THE ACT BEING THE DIFFERENCE, AFTER REDUCING THE SUM OF RS. 42,02,945/- ALREADY DISALLOWED BY THE ASSESSEE U/S 40(A)(IA) OF THE ACT. THEREAFTER, HE ALSO OBSERVED THAT AN AMOU NT OF RS.3,12,897/- IS CLAIMED AS DEDUCTION IN RESPECT OF THE AMOUNT WITHDRAWN FROM RESERVE/PROVISION. HE THEREFORE, ADD ED IT BACK TO THE BOOK PROFIT OF THE ASSESSEE AND BROUGHT IT TO T AX. HE ALSO ADDED INTEREST OF RS.28,249/- TO THE BOOK PROFIT AN D BROUGHT IT TO TAX. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A), WHO DISMISSED THE SAME B Y OBSERVING THAT IT WAS MANDATORY FOR THE ASSESSEE TO FILE THE APPEAL ELECTRONICALLY, BUT SINCE THE ASSESSEE HAS FILED TH E APPEAL MANUALLY, IT IS NOT ADMISSIBLE. AGGRIEVED, THE ASSE SSEE IS IN APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS OF APPEA L: 1. THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS B OTH ON FACTS AND IN LAW. 2. THE LEARNED CIT (A) OUGHT TO HAVE PROVIDED PROPE R OPPORTUNITY TO THE APPELLANT BEFORE REJECTING THE A PPEAL FILED ON TECHNICAL GROUNDS. 3. THE LEARNED CIT (A) OUGHT TO HAVE SEEN THAT IT I S MERELY A MISTAKE IN PROCEDURE ADOPTED BY THE APPELL ANT AND THAT SUCH MISTAKE IS A CURABLE ONE; 4. THE LEARNED CIT (A) BEFORE DISMISSING THE APPEAL ON THE GROUND THAT THE APPEAL WAS NOT FILED ELECTRONIC ALLY, OUGHT TO HAVE PROVIDED PROPERTY OPPORTUNITY TO THE APPELLANT. 5. THE LEARNED CIT (A) OUGHT TO HAVE HELD THAT THE ADDITION OF RS.8,67,088/- MADE BY THE AO BY APPLYIN G THE PROVISIONS U/S 40(A)(IA) IS NOT JUSTIFIED. 6. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. ITA NO 1237 OF 2018 SRAVANI INSTITUTE OF MEDICAL SC IENCES P LTD HYDERABAD. PAGE 3 OF 4 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE E-FILING OF THE APPEAL HAD BECOME MANDATORY W.E .F.1.3.2016 AND BY WAY OF CIRCULAR NO.20/2016 DATED 26.5.2016, THE TIME LIMIT FOR FILING OF E-APPEALS WERE EXTENDED UPTO 15 .6.2016. HE SUBMITTED THAT THE ASSESSEE HAD FILED THE APPEAL MA NUALLY ON 4.5.2016. HE THEREFORE, PRAYED THAT THE ASSESSEE BE PERMITTED TO E-FILE THE APPEAL AND THE CIT (A) MAY CONSIDER THE MERITS OF THE CASE AFTER SUCH FILING. 4. THE LEARNED DR WAS ALSO HEARD. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAS FILED THE APPEAL MANUALLY WITHIN THE TIME PERMITTED. HOWEVER, THE APPEAL OUGH T TO HAVE BEEN SUBMITTED ELECTRONICALLY AFTER THE CBDT HAD EX TENDED THE TIME UPTO 15.6.2016. SINCE THE APPEAL WAS DEFECTIVE , THE CIT (A) OUGHT TO HAVE DIRECTED THE ASSESSEE TO FILE THE APP EAL ELECTRONICALLY INSTEAD OF DISMISSING THE SAME IN LIMINI. THEREFORE , WE DEEM IT FIT AND PROPER TO DIRECT THE ASSESSEE TO FILE THE APPEA L ELECTRONICALLY WITHIN A PERIOD OF 15 DAYS FROM THE DATE OF RECEIPT OF THIS ORDER AND CIT (A) SHALL CONSIDER IT TO BE WITHIN TIME. ON SUCH FILING, THE CIT (A) IS DIRECTED TO DISPOSE OF THE APPEAL ON MER ITS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH JULY, 2019. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 12 TH JULY, 2019. VINODAN/SPS ITA NO 1237 OF 2018 SRAVANI INSTITUTE OF MEDICAL SC IENCES P LTD HYDERABAD. PAGE 4 OF 4 COPY TO: 1 SRAVANI INSTITUTE OF MEDICAL SCIENCES (P) LTD., 1 8-8-585/54, KUMMARIVADI EDI BAZAR, HYDERABAD 500023 2 ITO WARD 3(3) SIGNATURE TOWERS, KONDAPUR, HYDERAB AD 3 CIT (A)-3 HYDERABAD 4 PR. CIT 3 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER