Bhasker Rudra , Hyderabad V. Income Tax Officer, Ward-11(4), Hyderabad

ITA 1238/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3994 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 27-05-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 11-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 12 38 /H/20 1 8 ASSESSMENT YEAR: 2 0 1 4 - 15 BHASKAR RUDRA, HYDERABAD. PAN BGUPR 2974M INCOME - T AX OFFICER, WARD 11(4), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI S. RAMA RAO REVENUE BY: SHRI ROHIT MUJUMDAR DATE OF HEARING: 27 /0 5 /2021 DATE OF PRONOUNCEMENT: 02 /0 6 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 5 , HYDERABADS ORDER DATED 05 / 0 3 /201 8 FOR AY 20 1 4 - 15 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT . 2 . BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL , ENGAGED IN THE BUSINESS OF TRADING OF STEEL , FILED THE RETURN OF INCOME ON 20.09.2014 FOR AY 2014 - 15 I TA NO. 12 38 /HYD /201 8 BHASKER RUDRA, HYD. : - 2 - : ADMITTING AN INCOME OF RS., 3,83,210/ - . THE CASE WAS TAKEN UP FOR SCRUTINY UNDER CASS . DURING THE COURSE OF SCRUTINY PROCEEDINGS, THE A O OBSERVED THAT THE A SSESSEE MADE PAYMENTS TO ITS SUPPLIERS IN CASH VIOLATING THE PROVISIONS OF SECTION 40A(3) OF THE ACT AND ACCORDINGLY DISALLOWED EXPENDITURE OF RS. 5,05,48,325/ - AND ADDED BACK THE SAME TO THE RETURNED INCOME VIDE HIS ORDER U/S. 143(3) DATED 30.12.2016. 3. ON APPEAL, THE CIT(A) CONFIRMED THE ASSESSMENT ORDER. 4. AGGRIEVED BY THE ORDER OF CIT(A), THE A SSESSEE IS IN APPEAL BEFORE THE ITAT. 5. BEFORE US, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE AO MERELY MENTIONED THAT THE CASH WAS WITHDRAWN FROM THE BANK AND THAT THE AMOUNTS MIGHT HAVE BEEN PAID IN CASH. HE CONTENDED THAT THE AO DID NOT CONSIDER TH E EXPLANATION CONTAINED IN RULE 6DD WHILE MAKING THE DISALLOWANCE U/S 40A(3), AS THE RULE 6DD(J) MENTION THAT WHERE THE PAYMENT IS REQUIRED TO BE MADE ON A DAY ON WHICH THE BANKS ARE CLOSED EITHER ON ACCOUNT OF HOLIDAY OR ON ACCOUNT OF STRIKE, THE PROVISIO NS OF SECTION 40A(3) WOULD NOT APPLY. THE LD. AR SUBMITTE D THAT THE PAYMENTS HAVE BEEN MADE ON THE BANK CLOSING DAY , ON WHICH DATE , CHEQUE PAYMENTS WERE NOT POSSIBLE. IN THIS CONNECTION, HE I TA NO. 12 38 /HYD /201 8 BHASKER RUDRA, HYD. : - 3 - : SUBMITTED THAT CASH BOOK AND LEDGER ACCOUNTS CAN BE VERIFIED TO A SCERTAIN THE CORRECT PICTURE. 6. THE LD. CIT - DR, ON THE OTHER HAND, RELIED ON THE ORDERS OF REVENUE AUTHORITIES. 7. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD AS WELL AS GOING THROUGH THE ORDERS OF REVENUE AUTHORITIES, WE OBSERVE THAT BOTH THE AUTHORITIES BELOW HAVE NOT ASCERTAINED THE CORRECT FACTS OF THE CASE AS PER THE PROVISIONS OF SECTION 40A(3) R.W. RULE 6DD. THEREFORE, WE DEEM IT FIT AND PROPER TO REMIT THE ISSUE BACK TO THE FILE OF THE AO WITH A DI RECTION TO VERIFY THE ACTUAL DATE OF PAYMENTS AND QUANTUM OF PAYMENTS AND WHETHER THE PROVISIONS OF SECTION 40A(3) WILL ATTRACT TO THE CASE OF THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE IN THE MATTER. THE ASSESSEE IS DIRECTED TO SUBSTANTIATE ITS CLAIM BY WAY OF DOCUMENTARY EVIDENCE BEFORE THE AO WITHOUT SEEKING ADJOURNMENTS. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 2 ND JUNE , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 2 ND JUNE , 20 2 1 . I TA NO. 12 38 /HYD /201 8 BHASKER RUDRA, HYD. : - 4 - : K V C OPY TO : 1 BHASKER RUDRA, PLOT NO. 127, SUBHASH NAGAR, SHAPUR NAGAR, HYDERABAD 500 055 2 ITO, WARD 11(4), IT TOWERS, AC GUARDS, HYDERABAD . 3 C I T(A) 5 , HYDERABAD. 4 PR. CIT - 5 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER