Sameer Khan`, Visakhapatnam V. The Assistant Commissioner of Income Tax, Circle-1(1), , Visakhapatnam

ITA 128/VIZ/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 4996 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-04-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 08-07-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MURTHY NAIK
• Section: 263; 143(3); 143(2)

Judgement Text

आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.128/Viz/2021 (ननधधारण वषा / Assessment Year :2015-16) Sameer Khan, Visakhapatnam-1. PAN: AUHPS 9016 R Vs. ACIT, Circle-1(1), Visakhapatnam (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Sri Murthy Naik, CIT-DR स ु नवधई की तधरीख / Date of Hearing : 09/03/2022 घोषणध की तधरीख/Date of Pronouncement : 07/04/2022 O R D E R PER S. BALAKRISHNAN, Accountant Member : This appeal filed by the assessee against the order of the Ld. Pr. CIT, Visakhapatnam-1 vide DIN & Letter No.ITBA/COM/F/17/2020/1032080706(1), dated 31/3/2021 for the AY 2015-16. 2 2. Brief facts of the case are that the assessee is engaged in the wholesale trading of Iron and Iron scrap. The assessee filed his return of income for the AY 2015-16 declaring total income of Rs. 28,29,930/- on 28/09/2015. Subsequently, the case was selected for scrutiny under CASS and statutory notices U/s. 143(2) and 142(1) were served on the assessee. In response to the notices the asessee’s representative appeared and filed the details required by the Ld. AO. The Ld. AO after examination of the books of accounts and other details called for, completed the assessment by adding Rs. 1,14,000/- as interest income from the unsecured loans not declared by the assessee. 3. Subsequently, the Ld. Pr. CIT, Visakhapatnam-1, under the powers vested in him as per the provisions of section 263 of the Act noticed that the assessee received loan of Rs. 61 lakhs from 11 unsecured loan creditors and repaid the same during the year under consideration. The Ld. Pr. CIT issued a show cause notice on 23/10/2018 to the assessee. In response to the above show cause notice the assessee filed details of bank account extract of the creditors and the IT returns filed by the creditors to prove the 3 genuineness of the transactions. The Ld. Pr. CIT relying on the decision of the Hon’ble Supreme Court in the case of Malabar Industrial Co. Ltd vs. CIT [2000] 109 taxman 66 (SC) and also relying on the decisions of various High Courts found that the assessment order passed U/s. 143(3) prima facie erroneous and prejudicial to the interest of the Revenue and therefore proposed to revise the same U/s. 263 of the Act. The Ld. Pr. CIT after carefully considering the submissions made by the assessee with respect to loan creditors set-aside the file to the Ld. AO for the limited purpose of verification of the creditworthiness of the creditors afresh. The Ld. Pr. CIT directed the Ld. AO to obtain necessary evidences and to afford a reasonable opportunity to the assessee of being heard before passing a consequential order. Aggrieved by the order of the Ld. Pr. CIT, assessee is in appeal before us. 4. Before us at the time of hearing none appeared on behalf of the assessee to represent his case. The Ld. DR supported the order of the Ld. Pr. CIT. 5. We have heard the Ld. DR and carefully perused the material on record and the orders of the authorities below. Admitted facts 4 are that the assessee has taken a loan from various creditors amounting to Rs. 61 lakhs as detailed in page 2 and 3 of the order U/s. 263 of the Act. The assessee has submitted the written submissions and relied on the decisions of various Benches of the Hon’ble Tribunal and Hon’ble High Courts as detailed in written submissions. 6. We have gone through the records and written submissions of the assessee. We find that there is no specific mentioning about the submissions made by the assessee in the order of the Assessing Officer. In view of the above invoking the powers under section 263 of the Act by the Ld. Pr. CIT is valid in law and therefore, we hereby confirm the order of the Ld. Pr. CIT. 7. In the result, appeal of the assessee is dismissed. Pronounced in the open Court on the 07 th April , 2022. Sd/- Sd/- (द ु व्ि ू रु आर.एऱ रेड्डी) (एस बाऱाक ृ ष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER ऱेखा सदस्य/ACCOUNTANT MEMBER Dated : 07.04.2022 OKK - SPS 5 आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee– Sameer Khan, D.No.28-8-48/2, Raja Ram Mohan Roy Road, Velampeta, Kotha Road, Vsakhapatnam, Andhra Pradesh 530002. 2. रधजस्व/The Revenue – Assistant Commissioner of Income Tax, Circle-1(1), Direct Taxes Building, 4 th Floor MVP Colony, Visakhapatnam, Andhra Pradesh. 3. The Principal Commissioner of Income Tax-1, Visakhapatnam. 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR,ITAT, Visakhapatnam 6. .गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam