Grandhi Subba Rao, Hyderabad V. DCIT, Hyderabad

ITA 1265/HYD/2006

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3204 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-05-2010
• Assessment Year: 2000-2001
• Appeal Filed On: 28-12-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMEBR ITA NO.1265/HYD/2006 ASSTT. YEAR 2000-01 SHRI GRANDHI SUBBA RAO, GUNTUR (PAN NO. ACKPG 6041 R) V/S. DCIT, CENTRAL CIRCLE-3, HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. RAMA RAO RESPONDENT BY : SMT. NIVEDITA BISWAS, DR O R D E R PER SHRI G.C. GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2000-01 IS DIRECTED AGAINST THE ORDER OF THE CIT (A). THE GROUND S OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: '1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN NOT ALLOWING THE DIFFERENCE IN ACCOUNTS OF SHIMOGA ARECANUT TRADERS IN FULL RESTRICTED TO RS.86,670/-'. ITA NO.1265/HYD/2006 SHRI GRANDHI SUBBA RAO,GUNTUR. 2 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE CIT (A) HAS ERRED IN SUSTAINING THE ADDITION OF RS.86,670/- ON ACCOUNT OF DIFFERENCE IN THE ACCOUNT OF ARECANUT TRADERS, SHIMOGA. HE SUBMITTED THAT THE ASSESSEE HAS FILED THE RECONCILIATION STATEMENT AN D THERE WAS NO JUSTIFICATION FOR SUSTAINING THE ADDITION. THE LEARN ED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDER OF THE ASSESSIN G OFFICER AND THE CIT (A) AND SUBMITTED THAT THE CIT (A) HAS CONSIDERED T HE RECONCILIATION STATEMENT AND HAS PASSED A SPEAKING ORDER G IVING REASONS FOR SUSTAINING THE PART OF THE ADDITION. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND TH AT THE ADDITION WAS MADE ON ACCOUNT OF DIFFERENCE IN THE ACCOUNT OF THE ASSESSEE AND IN THE ACCOUNT OF THE SUPPLIERS M/S ARECANUT TRA DERS OF SHIMOGA AT RS.86,670/-. THE ASSESSEE HAS EXPLAINED THE DI FFERENCE BY SUBMITTING THAT IT HAS MADE CORRECT ACCOUNTING ENTRIES FOR THE INTEREST PAID BY THE ASSESSEE AND IF THERE IS SOME DIFFERENCE/MISTAK E IN ACCOUNTING BY THE SUPPLIER PARTY M/S ARECANUT TRADERS O F SHIMOGA, NO ADDITION COULD BE MADE IN THE HANDS OF THE ASSESSEE. IN THESE FACTS, WE FIND THAT SINCE THE ASSESSEE HAS FILED A RECONCILIATION STATEMENT AND HAS EXPLAINED THE REASON FOR THE DIFFERENCE IN THE ACCOU NT OF THE ASSESSEE WITH THE ACCOUNT OF THE SUPPLIER PARTY M/S ARECANUT TRADERS OF SHIMOGA AND THE EXPLANATION OF THE ASSESSEE THAT IT HAS MADE CORRECT ENTRIES OF THE INTEREST PAID BY THE ASSESSEE COULD N OT BE CONTROVERTED BY THE REVENUE, WE HOLD THAT THERE IS NO REASON TO ITA NO.1265/HYD/2006 SHRI GRANDHI SUBBA RAO,GUNTUR. 3 SUSTAIN THE ADDITION OF RS.86,670/- WHICH IS ACCORDINGLY D ELETED AND THE GROUNDS OF THE APPEALS OF THE ASSESSEE ARE ALLOWED. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 04-06-2010. SD/- SD/- (AKBER BASHA) (G.C. GUPTA) ACCOUNTANT MEMBER VICE-PRESIDENT PVV/SPS DATE:4TH JUNE,2010. COPY FORWARDED TO: 1. SHRI GRANDHI SUBBA RAO, C/O SRI S. RAMA RAO, ADV OCATE, FLAT NO.103, H.NO.3-6-542/4 HIMAYATH NAGAR, STREET NO.7, HY DERABAD 500029 2. THE DY.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, HYDERABAD 3. THE COMMISSIONER OF INCOME-TAX (APPEALS) I, HYDERABAD . 4. THE COMMISSIONER OF INCOME-TAX-(CENTRAL), HYDERABAD 5 THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD.