Marilyn P.Rao L/r of Sri Prabhakar Rao Dara, Secunderabad V. Income Tax Officer, Ward-13(1), Hyderabad

ITA 1306/Hyd/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0848 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 20-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC, HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A. NO. 1306/HYD/2019 ASSESSMENT YEAR: 2008-09 SMT.MARILYN P.RAO, L/R. OF SRI PRABHAKAR RAO DARA, SECUNDERABAD [PAN: ABAPD1929N] VS INCOME TAX OFFICER, WARD-13(5), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.C.YADAV, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 15-12-2020 DATE OF PRONOUNCEMENT : 18-12-2020 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX (APPEALS) 4, HYDERABAD, IN APPEAL NO.4/11006/16-17/W-13(5),HYD/ CIT(A)-4/HYD/19-20, DATED 24-05-2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL, FILED HIS RETURN OF INCOME FOR THE AY.200 8-09 ON 31- 03-2009, ADMITTING TOTAL INCOME OF RS.1,88,200/-. INI TIALLY THE ASSESSMENT WAS COMPLETED U/S.143(3) R.W.S. 147 OF THE INCOME TAX ACT [ACT] ON 28-03-2013, THEREAFTER PURSUANT TO THE OR DER OF THE LD. CIT U/S.263 OF THE ACT THE LD.AO PASSES ORDE R ON 30/03/2016 WHEREIN HE MADE ADDITION OF RS. 1,34,384/ - ITA NO.1306/HYD/2019 :- 2 -: TOWARDS DISALLOWANCE OF INTEREST AND RS.5,80,000/- TOWA RDS INCOME FROM OTHER SOURCE. ON APPEAL THE LD.CIT(A) DIS MISSED THE APPEAL BY AGREEING WITH HIS VIEW. 3. AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFO RE THE TRIBUNAL, RAISING THE FOLLOWING GROUNDS: 1. THE LEARNED COMMISSIONER HAS NOT AFFORDED A REA SONABLE OPPORTUNITY TO THE APPELLANT TO PLEAD HIS CASE AND VIOLATED THE PRINCIPLES OF NATURAL JUSTICE AND AS SUCH, THE IMPU GNED APPELLATE ORDER MAY BE SET ASIDE. 2. THE FINDING OF THE LEARNED COMMISSIONER THAT THE APPELLANT DID NOT WANT TO PURSUE THE APPEAL IS FRIVOLOUS ONE AND ONLY REFLECTS THAT HE PROCEEDED TO DISPOSE OFF THE APPEAL WITH PREDETERMI NED DECISION. 3. THE RATIO LAID DOWN IN THE DECISIONS RELIED ON B Y THE LEARNED CIT(A), HYDERABAD HAS NO APPLICATION TO THE FACTS AND CIRCU MSTANCES OF THE CASE. 4. THE IMPUGNED ORDER PASSED BY THE A.O IN MAKING T HE ADDITION OF THE CASH DEPOSITS AMOUNTING TO RS.5,80,000/- MADE I N THE APPELLANTS BANK ACCOUNT MAINTAINED WITH SBH AND CO NFIRMED BY THE CIT(A) AS THE TOTAL INCOME OF THE APPELLANT IS UNWA RRANTED AND UNSUSTAINABLE UNDER LAW. THE AUTHORITIES BELOW FAI LED TO APPRECIATE THE FACT THAT THE SOURCE FOR CASH DEPOSITS IN THE B ANK ACCOUNT WAS OUT OF THE CONSIDERATION OF RS.9,25,000/- RECEIVED BY T HE APPELLANT ON SALE OF HIS AGRICULTURAL LAND TO MR.D.PRAKASH RAO, AN AGRICULTURIST AND YOUNGER BROTHER OF THE DECEASED APPELLANT, AS EVIDE NT FROM THE AGREEMENT OF SALE ENTERED INTO BETWEEN THEM. IT IS THEREFORE PRAYED THAT THE A.O. MAY BE DIRECTED TO DELETE THE ADDITIO N OF RS.5,80,000/- FROM THE TOTAL INCOME. 5. IN ANY EVENT, THE AUTHORITIES BELOW FAILED TO CO NSIDER THE FACT THAT THE PURCHASER OF AGRICULTURAL LANDS NAMELY MR.D.PRA KASH RAO, IS AN AGRICULTURIST. HE REMITTED THE MONEY TO THE ACCOUNT OF THE APPELLANT FROM THE BANK AT HUZURNAGAR, NALGONDA DISTRICT. THE ADDITION IS BASED ON EXTRANEOUS REASONS AND ARE LIABLE TO BE DE LETED. ITA NO.1306/HYD/2019 :- 3 -: 4. AT THE OUTSET, LD.AR SUBMITTED BEFORE US THAT THE LD.CIT(A) HAS NOT OFFERED PROPER OPPORTUNITY TO THE ASS ESSEE OF BEING HEARD AND PASSED EX-PARTE ORDER . IT WAS FURTHER SUBMITTED THAT ADDITIONAL INFORMATION IS REQUIRED TO BE FURNISHED BEFORE THE LD. REVENUE AUTHORITIES, THEREFO RE ONE MORE OPPORTUNITY MAY BE GIVEN TO ARGUE THE CASE BEFOR E THE LD.CIT(A). 5. THE LD.DR VEHEMENTLY OPPOSED THE SUBMISSIONS OF THE LD.AR AND PRAYED FOR CONFIRMING THE ORDER OF LD.CIT( A). 6. I HAVE HEARD THE RIVAL SUBMISSIONS THROUGH VIDEO CONFERENCE AND CAREFULLY PERUSED THE MATERIAL ON RECO RD. ON VERIFYING THE FACTS OF THE CASE, I FIND THAT THE LD.CIT( A) HAS POSTED THE CASE FOR HEARING ON SEVERAL OCCASIONS. HOW EVER NEITHER THE ASSESSEE NOR HIS AUTHORISED REPRESENTATIVE APPEARED BEFORE THE LD.CIT(A) ON THE DATE OF HEARING. THEREFORE, THE ARGUMENT ADVANCED BY THE LD.AR DOES NOT HAVE ANY MERIT. HOWEVER, CONSIDERING THE SUBMISSIONS OF TH E LD.AR THAT ADDITIONAL EVIDENCE IS REQUIRED TO BE PRODUCED BEF ORE THE LD.REVENUE AUTHORITIES IN ORDER TO AVOID MISCARRIAGE OF JUSTICE, IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE ISSUE BAC K TO THE FILE OF LD.CIT(A) FOR FRESH CONSIDERATION. NEEDLESS TO MENTION THAT ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEA RING. I ALSO HEREBY DIRECT THE ASSESSEE/ASSESSEES REPRESENTATIVE TO PROMPTLY CO-OPERATE WITH THE LD.CIT(A) IN HIS PROCEEDIN GS FAILING WHICH THE LD.CIT(A) SHALL BE AT LIBERTY TO P ASS ITA NO.1306/HYD/2019 :- 4 -: APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERIT BA SED ON THE MATERIALS ON RECORD. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED A S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 18 TH DECEMBER, 2020 SD/- ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 18-12-2020 TNMM ITA NO.1306/HYD/2019 :- 5 -: COPY TO : 1.SMT.MARILYN P.RAO, L/R. OF SHRI PRABHAKAR RAO DAR A, #10-3-27/6, EAST MARREDPALLY, NEAR NEW WATER TANK, SECUNDERABAD. 2.THE INCOME TAX OFFICER, WARD-13(5), HYDERABAD. 3.CIT(APPEALS)-4, HYDERABAD. 4.THE PR.CIT-4, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.