Malla Reddy Gurram , Hyderabad V. Income Tax Officer, Ward-9(1), Hyderabad

ITA 1313/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7389 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 05-07-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 22-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: S RAMA RAO
• Keywords: Document seized; Documents seized
• Section: 153A; 201; 9(1); 9(1); 9(1); 13; 153C; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO S . 1313 & 1314 /HYD./201 9 A.Y S : 20 12 - 13 & 2013 - 14 SRI MALLA REDDY GURRAM VS. ITO, WARD 9(1) HYDERABAD HYDERABAD [PAN: AAPPG2822B ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI S. RAMA RAO, ADV. FOR REVENUE: SRI A . SITARAMA RAO, DR DATE OF HEARING : 05 /0 7 /2021 DATE OF PRONOUNCEMENT : 17 /0 8 /2021 O R D E R PER S.S. GODARA, J.M. TH ESE ASSESSEES APPEAL S ARISE AGAINST THE CIT (A) - 7 , HYDERABADS ORDER DATED 10.06.2019 IN CASE NO. 0217/ 201 7 - 18 AND 096/2018 - 19 FOR AY 2012 - 13 AND 2013 - 14 ; RESPECTIVELY, INVOLVING PROCEEDINGS U/S 153C RWS 153A RWS 14 4 OF THE INCOME TAX ACT, 1961 [ IN SHORT THE ACT ]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET WITH THE ABLE ASSISTANCE OF BOTH THE PARTIES THAT THE INSTANT LIS INVOLVING THE ASSESSEES TWIN APPEALS DO NOT REQUIRE US TO DELVE MUCH DEEPER ON THE RELEVANT FACTS. SUFFICE TO SAY, WE ADVERT TO THE ASSESSEES SEC OND AND THIRD SUBSTANTIVE GROUNDS IN ITA 1313/HYD/19 FOR AY 2012 - 13 AND FIND THAT THE ASSESSING OFFICER HAD RECORDED THE CORRESPONDING ITA NOS. 1313 & 1314/HYD/19 AYS 2012 - 13 & 2013 - 14 SRI GURRAM MALLA REDDY 2 SATISFACTION NOTE DATED 17.3.2017 U/S 153C OF THE ACT THAT I HAVE EXAMINED THE SEIZED DOCUMENTS VIDE A/CAIMS/06 (PAGE 117) AND THE INFORMATION IS MADE AVAILABLE ON RECORD. I AM SATISFIED THAT THE BOOKS OF ACCOUNTS OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED HAVE BEARING ON THE DETERMINATION OF THE TOTAL INCOME OF SRI GURRAM MALLA R EDDY FOR THE A.Y.2012 - 13. 2.1. IT IS THEREFORE CLEAR AS PER THE R EVENUES PAPER BOOK ITSELF AT PAGE 1 THAT THE ASSESSEES AO SATISFACTION HAS FAILED TO RECORD AS TO WHETHER THE IMPUGNED INCRIMINATING MATERIAL SATISFIED THE CLINCHING STATUTORY EXPRESSION S BELONGS TO OR PERTAINS TO OR RELATES TO IN SEC.153(I)(A)(B) OF THE ACT. WE, THEREFORE, ADOPT STRICTER CONSTRUCTION ONLY AS PER HONBLE APEX COURTS F ULL B ENCH DECISION COMMISSIONER OF CUSTOMS VS. DILIP K UMA R R AY (2018) 9 SC 1 (SC) AND QUASH THE IMPUGNED ASSESSMENT A S NOT BASED ON A VALID SATISFACTION RECORD ED U/S 153C OF THE ACT. ORDERED ACCORDINGLY. ALL OTHER PLEADINGS ON MERITS ARE RENDERRED INFRUCTUOUS IN ASSESSEES FORMER APPEAL ITA 1313/HYD/2019. 3. WE NOW ADVERT TO ASSESSEES LATTER APPEAL ITA 1314/HYD/2019 FOR AY 2013 - 14 . WE NOTICE WITH THE ABLE ASSISTANCE OF BOTH THE PARTIES THAT THE ASSESSING OFFICER HAD INITIATED PROCEEDINGS U/S 148/147 THAT THE SEIZED DOCUMENTS IN PAGE 117 OF A/CAIMS/06 RELATE S TO AND BELONGS TO THE ASSES SEE SRI GURRAM MALLA REDDY . 3.1. IT IS THUS VERY MUCH APPARENT THAT THE A SSESSING O FFICER HAS NOT TAKEN RECOURSE TO THE SEC. 153C APPLICABLE IN CASE OF A THIRD PARTY OTHER THAN THE SEARCHED ASSESSEE DESPITE MAKING IT CLEAR THAT THE FOREGOING SEIZED DOCUMENTS RELATES TO AS WELL AS BELONGS TO THE ASSESSEE. WE THUS INVOKE THE MAXIM GENERALIA SPECIAL I BUS NON DEROGA NT I.E. A GENERAL PROVIS ION MUST YIELD TO THE SPECIAL ONE AND ACCORDINGLY HOLD THAT THE IMPUGNED REOPENING ITSELF IN THE INSTANT LATTER APPEAL FOR AY 2013 - 14 BASED ON THE SEIZED MATERIAL IS NOT ITA NOS. 1313 & 1314/HYD/19 AYS 2012 - 13 & 2013 - 14 SRI GURRAM MALLA REDDY 3 SUSTAINABLE IN THE EYES OF LAW. IT STANDS QUASHED FOR THIS PRECISE REASON . ALL OTH ER PLEADINGS ON MERITS IN THIS LATTER APPEAL ARE RENDERRED ACADEMIC. T HESE ASSESSEES TWIN APPEALS ARE ALLOWED IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 17 TH AUGUST 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 17 TH AUGUST, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. SRI GURRAM MALLA REDDY, 5 - 33, INJAPUR VILLAGE, HAYATNAGAR MANDAL, R.R.DT. HYDERABAD 500 004 , TELANGANA. 2. ITO, WARD 9(1), HYDERABAD 3. ACIT, RANGE 9 , HYDERABAD. 4. CIT (A) - 7 , HYDERABAD 5. PR. CIT - 7, HYDERABAD 6 . DR, ITAT, HYDERABAD. 7 . GUARD FILE.