LPF Systems Pvt Limited, Sec-bad, Hyderabad V. ACIT,Circle-16(1) Hyd, Hyderabad

ITA 1373/HYD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6542 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 13-10-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B SURESH BABU SR
• Assessee Lawyers: S RAMA RAO
• Section: 43B; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT I.T.A. NO. 1373/HYD/2016 ASSESSMENT YEAR: 2006-07 LPF SYSTEMS PVT. LIMITED, SECUNDERABAD [PAN: AAACL6048C] VS ASST. COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : SHRI B. SURESH BABU, (SR.AR-1) DATE OF HEARING : 05-07-2018 DATE OF PRONOUNCEMENT : 05-07-2018 O R D E R THIS APPEAL BY THE ASSESSEE-COMPANY IS DIRECTED AGA INST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-4, HYDERABAD AND IT PERTAINS TO AY. 2006-07. 2. AT THE OUTSET, IT MAY BE NOTICED THAT THIS APPEAL IS BAR RED LIMITATION BY TWENTY SIX DAYS. ASSESSEE HAS FILED A PETITION, EXPLAINING THE REASONS FOR DELAY. CONSIDERING THE REA SONS AND UPON HEARING THE LD.DR THAT I AM OF THE VIEW THAT THERE IS SUFFICIENT CAUSE FOR THE DELAY IN FILING THE APPEAL AN D THEREFORE, THE APPEAL IS ADMITTED AND I PROCEED TO DISPOSE THE APPE AL ON MERITS. 3. GROUND NOS. 1 AND 4 ARE GENERAL IN NATURE. I.T.A. NO. 1373/HYD/2016 :- 2 - : 4. VIDE GROUND NO. 2, ASSESSEE CONTENDS THAT THE CIT( A) ERRED IN CONFIRMING THE ACTION OF THE AO IN INITIATING PROCEEDINGS U/S. 147 OF THE INCOME TAX ACT. AT THE TIME OF HEARING, LD. COUNSEL ADMITTED THAT THE PROCEEDINGS WERE REOPENED WITHIN THE PERIOD OF FOUR YEARS AND HENCE HE HAS NO STRONG CASE WITH REGARD TO THE JURISDICTION OF THE AO IN REOPENING THE ASSESSMENT PROCEEDINGS. I THEREFORE RE JECT GROUND NO. 2 OF THE ASSESSEE. 5. VIDE GROUND NO. 3, ASSESSEE CONTENDS THAT THE CIT( A) ERRED IN CONFIRMING THE ADDITION MADE BY THE AO OF RS. 3,25,017/- WITHOUT CONSIDERING THE FACT THAT THE SAID AMO UNT WAS PAID AND IS ALLOWABLE AS DEDUCTION U/S. 43B OF T HE ACT. IT MAY BE NOTICED THAT ACCORDING TO THE AO, SALES TAX OF RS . 92,27,490/- WAS PAID, AS PER VAT 200 FORMS, WHEREAS RS. 95,52,507/- WAS DEBITED TOWARDS SALES TAX IN THE PROF IT & LOSS A/C. THEREFORE, THE EXCESS CLAIM OF RS. 3,25,017/- W AS ADDED TO THE INCOME RETURNED. THE CASE OF THE ASSESSEE BEF ORE THE TRIBUNAL WAS THAT ACTUAL PAYMENT MADE TO THE SALES TAX DEPARTMENT IN THIS YEAR IS RS. 95,62,507/- AS CAN BE NOTICED FROM PAGE NO. 14 OF THE PAPER BOOK AND IRRESPECTIVE O F WHETHER IT PERTAINS TO EARLIER YEAR OR THIS YEAR, THE PAYMENTS NE ED TO BE CONSIDERED ON THE BASIS OF THE DATES OF PAYMENT AND ACCORDINGLY, THE ASSESSEE IS ENTITLED FOR DEDUCTION OF RS. 95,52,507/-. HE REQUESTED THAT THE MATTER MAY BE SET A SIDE TO THE FILE OF AO TO VERIFY THE FACTUAL MATRIX OF THE CASE. 6. I HAVE ALSO HEARD THE LD. DEPARTMENTAL REPRESENTATI VE IN THIS REGARD. I.T.A. NO. 1373/HYD/2016 :- 3 - : 7. IT IS NOT IN DISPUTE THAT THE ACTUAL PAYMENT MADE IN THE YEAR UNDER CONSIDERATION HAS TO BE TAKEN INTO CONSIDER ATION. SINCE THIS MATTER REQUIRES FURTHER VERIFICATION, IN THE INTERESTS OF JUSTICE, I SET ASIDE THE MATTER TO THE FILE OF AO TO C ONSIDER THE FACTUAL MATRIX OF THE CASE AND DECIDE ACCORDINGLY. 8. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT 5 TH JULY, 2018 UPON CONCLUSION OF HEARING SD/- (D. MANMOHAN ) VICE PRESIDENT HYDERABAD, DATED 5 TH JULY, 2018 TNMM I.T.A. NO. 1373/HYD/2016 :- 4 - : COPY TO : 1. LPF SYSTEMS PVT. LTD., C/O. SRI S. RAMA RAO, ADV OCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3-6-643, STREET NO . 9, HIMAYAT NAGAR, HYDERABAD. 2. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD. 3. CIT (APPEALS)-4, HYDERABAD. 4. PR.CIT(4)-HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.