Abhyudaya Farms Private Limited, Hyd, Hyderabad V. DCIT, Circle-1(1), Hyd, Hyderabad

ITA 1313/HYD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1949 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-08-2018
• Assessment Year: 2000-2001
• Appeal Filed On: 10-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Keywords: Depreciation; Opportunity of being heard; Revised return
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I.T.A. NO. 1313/HYD/2016 ASSESSMENT YEAR: 2000-01 ABHYUDAYA FARMS (P) LTD., HYDERABAD [PAN: AACCA9059N] VS DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : SHRI NILANJAN DEY, DR DATE OF HEARING : 30-08-2018 DATE OF PRONOUNCEMENT : 31-08-2018 O R D E R PER INTURI RAMA RAO, A.M. : THIS APPEAL FILED BY ASSESSEE-COMPANY IS DIRECTED A GAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, HYDERABAD, DATED 14-06-2016 FOR THE AY. 2000-01. THE APPELLANT RAISED THE FOLLOWING GROUNDS OF APPEAL: 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 CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN T REATING THE SHARE ITA NO. 1313/HYD/2016 :- 2 - : APPLICATION MONEY TO AN EXTENT OF RS. 2,25,000/- AS THE INCOME OF THE APPELLANT. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE DISALLOWANCE OF DEPRECIATION OF RS. 5,88,249/-. 4. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN NOT CONSIDERING THE ADDITIONAL GROUND OF APPEAL CONTEST ING THE ADDITION OF RS. 15 LAKHS MADE BY THE ASSESSING OFFICER TOWARDS SHARE APPLICATION MONEY. 5. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: THE ASSESSEE IS A DOMESTIC COMPANY, ENGAGED IN THE BU SINESS OF POULTRY FARM, FILED ITS RETURN OF INCOME FOR THE AY. 2000-01 ON 28-11-2000, DECLARING LOSS OF RS. 24,125/-. AGAI NST THE SAID RETURN OF INCOME, ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE INCOME TAX ACT [ACT] VIDE ORDER DT. 13-03-2003 AT A TOTAL INCOME OF RS. 12,95,008/-. THE SAID RETURN OF INCOME WAS REVISED ON 23-01-2001, DISCLOSING TOTAL INCOME AT RS. 4,81,808/-. IN THE REVISED RETURN OF INCOME, THE APPE LLANT HAD OFFERED UNDISCLOSED INCOME OF SHARE APPLICATION MONE Y OF RS. 15 LAKHS AND CLAIMED DEPRECIATION UNDER INCOME TAX RU LES FOR RS. 11,69,017/- AND ACCORDINGLY OFFERED TOTAL INCOME OF RS. 4,81,808/-. AGAINST THE SAID RETURN OF INCOME, ASSESS MENT WAS COMPLETED BY THE ASSESSING OFFICER U/S. 143(3) O F THE ACT VIDE ORDER DT. 13-03-2003. WHILE DOING SO, THE ASSESS ING OFFICER MADE AN ADDITION ON ACCOUNT OF ALLEGED UNEXPL AINED INVESTMENT IN THE FORM OF SHARE APPLICATION MONEY OF RS . 2,25,000/-, EXCESS DEPRECATION OF RS. 5,88,200/- WAS DISALLOWED. BEING AGGRIEVED, THE APPELLANT PREFERRED AN APPEAL BEFORE THE CIT(A) AND RAISED THE ADDITIONAL GROUNDS OF APPEAL. ITA NO. 1313/HYD/2016 :- 3 - : THE APPELLANT ALSO FILED APPLICATION FOR ADMISSION OF ONE ADDITIONAL GROUND OF APPEAL, WHICH READS AS UNDER: PETITION FOR ADMISSION OF ADDITIONAL GROUNDS OF APP EAL: THE APPELLANT HEREIN IS A COMPANY IN WHICH PUBLIC A RE NOT SUBSTANTIALLY INTERESTED CARRYING ON THE BUSINESS O F POULTRY FARMING: FOR THE ASSESSMENT YEAR 2000-2001, THE ASSESSING OF FICER COMPLETED THE ASSESSMENT ON 13.3.2003 DETERMINING THE TOTAL I NCOME AT RS.12,95,008/-. THIS INCLUDES AN AMOUNT OF RS.15 LA KHS OFFERED BY THE APPELLANT TOWARDS SHARE APPLICATION MONEY. THE APPELLANT OBTAINED LETTERS OF CONFIRMATION AND FILED BEFORE T HE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS EVEN IN RESPECT OF SHARE APPLICATION MONEY OF RS.15 LAKHS. THE ASSESSING OFF ICER DID NOT CONSIDER THE LETTERS OF CONFIRMATION FILED WITH REG ARD TO RS.15 LAKHS. WHILE FILING THE APPEAL BEFORE THE HON'BLE COMMISSI ONER OF INCOME- TAX (APPEALS), THE APPELLANT DID NOT RAISE A SPECIF IC GROUND CONTESTING THE ADDITION OF RS.15 LAKHS. THE APPELLANT, THEREFO RE, IS SUBMITTING THIS APPLICATION FOR ADMISSION OF THE FOLLOWING ADD ITIONAL GROUND. GROUND OF APPEAL: 'THE ASSESSING OFFICER ERRED IN MAKING AN ADDITION OF RS.15 LAKHS TOWARDS SHARE APPLICATION MONEY RECEIVED FROM VARIOUS PERSO NS INSPITE OF THE FACT THAT THE SHARE APPLICANTS FILED THE LETTERS OF CONF IRMATION AND ALSO ADMITTED THE SOURCE FOR SUCH INVESTMENT' THE APPELLANT REQUESTS THE HON'BLE COMMISSIONER OF INCOME-TAX (APPEALS) TO KINDLY ADMIT THE ABOVE MENTIONED GROUN D OF APPEAL AND PASS APPROPRIATE ORDER IN THE MATTER. 3. ON PERUSAL OF THE IMPUGNED ORDER, WE FIND THAT THE CIT(A) HAD NOT ADJUDICATED THIS ADDITIONAL GROUND OF A PPEAL BY HOLDING THAT THIS GROUND OF APPEAL IS RELATED TO GROUN D NO.1. HOWEVER, WE FIND THAT BOTH THE ISSUES ARE NOT CONNECTE D WITH EACH OTHER AND THIS ADDITIONAL GROUND OF APPEAL IS REQ UIRED TO BE ADJUDICATED BY THE CIT(A). HENCE WE REMAND THE SAM E TO THE FILE OF CIT(A) FOR DENOVO ADJUDICATION IN ACCORDANCE WITH ITA NO. 1313/HYD/2016 :- 4 - : LAW, AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO TH E APPELLANT. 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST AUGUST, 2018 SD/- SD/- (P. MADHAVI DEVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 31 ST AUGUST, 2018 TNMM ITA NO. 1313/HYD/2016 :- 5 - : COPY TO : 1. ABHYUDAYA FARMS (P) LTD., C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3-6-643, STREET NO. 9, HIMAYAT NAGAR, HYDERABAD. 2. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD. 3. CIT(APPEALS)-1, HYDERABAD. 4. PR.CIT-1, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.