Greenko Budhil Hydro Power Private Limited., Hyderabad V. Asst. Commissioner of Income Tax, Circle-2(2)., Hyderabad

ITA 1344/Hyd/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2512 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 18-06-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 02-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: S RAMA RAO

Judgement Text

ITA NO 1344 OF 2017 GREENKO BUDHIL HYDRO POWER P LT D HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1344/HYD/2017 (ASSESSMENT YEAR: 2013-14) M/S. GREENKO BUDHIL HYDRO POWER PRIVATE LIMITED HYDERABAD PAN: AAACL9828J VS DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SHRI Y.V.S.T. SAI, CIT(DR) O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAIN ST THE ORDER OF THE CIT (A)-2, HYDERABAD, DATED 15.05. 2017. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD. CIT(A) ERRED IN SUMMARILY DISMISSING THE APPEAL FIL ED BY THE APPELLANT WITHOUT DISCUSSING THE GROUNDS ON MER IT WHICH IS UNJUSTIFIED AND AGAINST THE PROVISIONS OF THE ACT. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN STATING THE APPELLANT HAVE NOT ATTE NDED THE HEARINGS ON VARIOUS DATES WHEN THE APPELLANT HAVE ACTUALLY TAKEN ADJOURNMENTS ON THREE OCCASIONS ON R ECEIPT OF THE HEARING NOTICES AND IT WAS ONLY ONE HEARING WHICH WAS SKIPPED AS THE MANAGEMENT OF THE COMPANY AND AR WERE OCCUPIED WITH SEARCH PROCEEDINGS INITIATED ON THE GROUP COMPANIES OF THE APPELLANT. DATE OF HEARING : 18.06.2019 DATE OF PRONOUNCEMENT: 21.06.2019 ITA NO 1344 OF 2017 GREENKO BUDHIL HYDRO POWER P LT D HYDERABAD. PAGE 2 OF 3 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPELLANT WAS DENIED OF THE PRINCIPLES OF NATURAL J USTICE BY THE LD.CIT(A) ALSO AND NO SUFFICIENT OPPORTUNITY OF HEARING WAS GRANTED TO THE APPELLANT BEFORE PASSING THE APP ELLATE ORDER. 4. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED ON BOTH FACTS AND IN LAW BY ADDING THE AMOUNT OF RS.6,56,76,169/- ON ESTIMATION/ADHOC BASI S AT AN UNIMAGINABLE RATE OF 20% OF GROSS TURNOVER WITHO UT CONSIDERING THE FACT THAT THE APPELLANT HAD STARTED ITS COMMERCIAL PRODUCTION IN A.Y.2013-14 ONLY. 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN ESTIMATING THE INCOME AT A RATE OF 20% WITHOUT ANY COGENT OR CREDIBLE MATERIAL ON RECORD. THE LD. CIT(A) OUGHT TO HAVE COMPARED THE APPELLANT'S RESUL TS WITH ANOTHER COMPARABLE BUSINESS ENTITY IN THE SAME FILE D, TO SUPPORT HIS CONCLUSIONS. 6. THE APPELLANT CRAVES TO INSERT NEW GROUNDS, AND TO ADD, AMEND, ALTER, INSERT DELETE ANY OF THE ABOVE GROUND S OF APPEAL EITHER IN FULL OR IN PART ON OR BEFORE THE F INAL HEARING OF THE APPEAL. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT DUE TO CHANGE IN MANAGEMENT, THE ASSESSEE COULD NOT APPEAR BEFORE THE AO AND ALSO BEFORE THE CIT (A) AND THERE FORE, THE ASSESSMENT IS COMPLETED EX-PARTE THE ASSESSEE BY TH E AO BY ESTIMATING THE INCOME AT 20% OF THE GROSS TURNOVER WHICH IS QUITE HIGH IN THIS LINE OF BUSINESS. EVEN BEFORE THE CIT (A), THE ASSESSEE COULD NOT APPEAR AND THEREFORE, THE ESTIMATION OF I NCOME AT 20% OF THE GROSS TURNOVER WAS CONFIRMED BY THE CIT (A). HE PRAYED FOR ANOTHER OPPORTUNITY BEFORE THE AUTHORITIES BELOW TO PRESENT HIS CASE AS THIS IS THE FIRST YEAR OF ASSESSMENT. 3. THE LEARNED DR WAS ALSO HEARD. ITA NO 1344 OF 2017 GREENKO BUDHIL HYDRO POWER P LT D HYDERABAD. PAGE 3 OF 3 4. CONSIDERING THE CONTENTIONS OF BOTH THE PARTIES, WE ARE OF THE OPINION THAT SINCE THE INCOME OF THE ASSESSE E HAS BEEN ESTIMATED AT 20% OF THE GROSS TURNOVER WHICH APPEAR S TO BE ON THE HIGHER SIDE AND THIS BEING THE FIRST YEAR OF AS SESSMENT AFTER ITS FORMATION, WE DEEM IT FIT AND PROPER TO REMIT THE I SSUE TO THE FILE OF THE AO FOR DENOVO CONSIDERATION IN ACCORDANCE WI TH LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVE N A FAIR OPPORTUNITY OF HEARING AND THE ASSESSEE ALSO SHALL APPEAR AND FILE THE REQUIRED DETAILS BEFORE THE AO AND COOPERATE WI TH THE AO FOR EARLY COMPLETION OF THE ASSESSMENT. 5. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JUNE, 2019. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 21 ST JUNE, 2019. VINODAN/SPS COPY TO: 1 M/S. GREENKO BUDHIL HYDRO POWER PRIVATE LTD, PLOT NO.1367 ROAD NO.45, JUBILEE HILLS, HYDERABAD 500033 2 DY.CIT, CIRCLE 2(2) ROOM NO.513, 5 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDEN, KONDAPUR, HYDERABAD 500084 3 CIT (A)-2 HYDERABAD 4 PR. CIT 2 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER