XL Telecom & Energy Limited., Secunderabad V. Income Tax officer, Hyderabad

ITA 1271/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74462 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 16-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P PRASAD
• Keywords: Opportunity of being heard
• Section: 133A; 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1271/HYD/2013 ASSESSMENT YEAR: 2010-11 XL TELECOM & ENERGY LTD., SECUNDERABAD. PAN AAACX0113C VS. INCOME TAX OFFICER (TDS), WARD 15(3), HYDERABAD. APPELLANT RESPONDENT ASSESSEE BY: SRI P. PRASAD REVENUE BY: SRI JEEVAN LAL LAVIDIYA DATE OF HEARING: 08/01/2014 DATE OF PRONOUNCEMENT: 08/01/2014 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF THE CIT(A)-II, HYDERABAD DATED 15/07/2013 FOR THE ASSESSMENT YEAR 2010-11 WHEREIN THE ASSESSEE HAS RA ISED THE FOLLOWING SUBSTANTIAL GROUNDS: 1. THE ASSESSING OFFICER (TDS), WARD-15(3)/HYD IS N OT CORRECT TO FASTEN THE LIABILITY OF RS. 3,32,71,759/ - AS THE EXPENDITURE FIGURE CLAIMED IN THE PROFIT AND LOSS A CCOUNT IS INCLUSIVE OF TDS AND NON TDS LEVIABLE AMOUNTS OF EXPENDITURE AND EVEN THE LEARNED CIT(A)-II/HYD IS I NCORRECT TO HOLD THE ORDERS OF THE ASSESSING OFFICER. 2. THE APPELLANT HAS DISCHARGED THE TDS AS PER ITS BOOKS OF ACCOUNT AND FILED THE COPIES OF THE FINANCIAL STATE MENTS AS SUCH THE DEMAND RAISED OF RS. 3,32,71,759/- MAY PLE ASE BE CANCELLED. 3. AN OPPORTUNITY MAY KINDLY BE ACCORDED TO THE APP ELLANT TO PLACE HIS CASE BEFORE YOUR AUTHORITY TO DETERMINE T HE TDS LIABILITY. I.T.A. NO.1271/HYD/2013 XL TELECOM & ENERGY LTD. 2 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING ELECTRONI C AND TELECOM HARDWARE. A SURVEY U/S 133A WAS CONDUCTED ON 05/11/ 2009 BY THE TDS ITO, WARD 15(3), HYDERABAD. DURING THE TDS AS SESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAD CALLED FOR T HE BOOKS OF ACCOUNTS AND OTHER RELEVANT PARTICULARS VIDE HER LE TTERS DATED 10/02/2012, 17/02/2012, 23/02/2012, 01/03/2012, 05/ 03/2012, 21/02/2012 AND 29/03/2012. IN RESPONSE TO THOSE LET TERS THOUGH THE DGM AND ACCOUNTS MANAGER OF THE ASSESSEE COMPANY AP PEARED, THE REQUIRED DETAILS CALLED FOR BY THE ASSESSING OF FICER WERE NOT PRODUCED ON THE GROUND THAT THE COMPANY WAS GOING T HROUGH CREDIT DEBT RESTRUCTURING PACKAGE, MOST OF THE EMPLOYEES H AD ALREADY LEFT THE COMPANY AND NO OPERATIONS WERE BEING CARRIED OU T BY THE COMPANY. THEREAFTER, THE TDS ASSESSING OFFICER HAD FINALIZED THE ASSESSMENT U/S 201(1) AND 201(1A) COMPUTING THE LIA BILITY AT RS. 2,49,19,692/- AND RS. 83,52,067/- RESPECTIVELY, TOT AL AMOUNTING TO RS. 3,32,71,759/-. 3. ON APPEAL, THE CIT(A) DISMISSED THE APPEAL OF TH E ASSESSEE EX-PARTE, BY OBSERVING ORDER: 9. IT IS EVIDENT FROM THE ABOVE THAT SUFFICIENT OPP ORTUNITIES WERE GIVEN TO THE APPELLANT TO PRESENT HIS CASE, NE ITHER HE APPEARED IN PERSON NOR MADE ANY WRITTEN SUBMISSION NOR ANY ADJOURNMENT WAS SOUGHT FOR. DURING THE ASSESSMENT PROCEEDING ALSO, NO DETAILS WERE SUBMITTED. IN THES E CIRCUMSTANCES, IT IS CONSIDERED THAT THE APPELLANT IS NOT INTERESTED IN PURSUING HIS APPEAL. ACCORDINGLY, THE APPEAL IS DISMISSED. 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 5. IN THE COURSE OF HEARING, IT WAS POINTED OUT BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE LEARNED CIT(A) HA D DECIDED THE MATTERS EX-PARTE. THEREFORE, IT WOULD BE IN THE FIT NESS OF THINGS IF THE MATTER IS RESTORED TO HIS FILE FOR DECIDING VAR IOUS GROUNDS OF APPEAL ON MERITS. THE LEARNED DR AGREED WITH THE AF ORESAID STATEMENT OF THE LEARNED AR. I.T.A. NO.1271/HYD/2013 XL TELECOM & ENERGY LTD. 3 6. WE HAVE CONSIDERED THE FACTS OF THE CASE AND THE REQUEST MADE BY THE LEARNED AR. WE ARE OF THE VIEW THAT INT EREST OF JUSTICE WILL BE SERVED IF THE MATTER IS RESTORED TO THE FIL E OF FIRST APPELLATE AUTHORITY FOR DECIDING VARIOUS GROUNDS OF APPEAL OF THE ASSESSEE ON MERITS. ACCORDINGLY, THE CIT(A) IS DIRECTED TO AFFO RD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THER EAFTER DECIDE THE APPEAL ON MERITS. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 08/01/2014. SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 08/01/2014. KV COPY FORWARDED TO: 1. XL TELECOM & ENERGY LTD., C/0 SHARMA & SASTRY, C AS, NO. 5-3-318/1, JEERA, MG ROAD, SECUNDERABAD 500 003. 2. ITO (TDS), WARD 15(3), HYDERABAD. 3. CIT(A)-II, HYDERABAD 4. CIT(TDS), HYDERABAD. 5. THE DR, ITAT, HYDERABAD