ACIT, CHENNAI V. Tamilnadu Real Estates Pvt Ltd., CHENNAI

ITA 1374/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86365 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 05-02-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 16-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Assessee Lawyers: G SEETHARAMAN
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , . ' #$ , % & BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ ITA NO.1374/MDS/2014 % $ ($ / ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE III(1), CHENNAI - 600 034. V. M/S TAMILNADU REAL ESTATES PVT. LTD., NO.15, NUNGAMBAKKAM HIGH RD., CHENNAI - 600 034. PAN : AABCT 5912 E (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI N. MADHAVAN, JCIT ,-*+ . / / RESPONDENT BY : SHRI G. SEETHARAMAN, CA ' . 0 / DATE OF HEARING : 05.02.2015 1( . 0 / DATE OF PRONOUNCEMENT: 20.03.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I II, CHENNAI, DATED 30.12.2013 RELEVANT TO THE ASSESSMENT YEAR 20 07-08. 2 I.T.A. NO.1374/MDS/2014 2. FACTS IN BRIEF ARE THAT THE ASSESSEE, A PRIVATE LIMITED COMPANY, FILED ITS RETURN OF INCOME DECLARING A TOT AL INCOME OF ` 2,22,24,942/-. THE RETURN FILED BY THE ASSESSEE WA S PROCESSED UNDER SECTION 143(1) OF THE INCOME-TAX ACT, 1961 (I N SHORT 'THE ACT'). SUBSEQUENTLY, AFTER DUE PROCESS, THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT. IN THE ASSESSMENT ORDER, THE A.O., WHILE DISCUSSING THE ISSUE INVOLVED IN THIS APPEAL, OBSERVED THAT THE ASSESSEE-COMPANY HAS SHOWN A SUM OF ` 1,03,54,011/- AS OTHER INCOME IN THE PROFIT & LOSS ACCOUNT FOR THE YEAR E NDED 31.03.2007. THE ASSESSEE-COMPANY IS ALSO DOING JOINT-VENTURE BU SINESS WITH WAHAB CHAMBERS BANGALORE. THIS HAS NOT BEEN REPORT ED IN THE AUDIT REPORT. THE ASSESSEE-COMPANY HAS ALSO NOT P RODUCED ANY DETAILS OF ACCOUNT WITH REGARD TO THE SAME. IN VIE W OF THE ABOVE, THE A.O. HAS ESTIMATED 10% OF SUCH INCOME AS EXPENDITUR E AND 90% OF SUCH INCOME, WHICH WORKS OUT TO ` 93,18,610/-, TREATED AS INCOME FROM OTHER SOURCES. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(APPEALS). THE LD. CIT(APPEALS) WITHOUT CONSIDE RING THE ISSUE IN DETAIL, SIMPLY DELETED THE ADDITION TO THE EXTEN T OF ` 93,18,610/-. 3 I.T.A. NO.1374/MDS/2014 4. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. THE LD. D.R. HAS SUBMITTED THAT IN HIS APPELLATE ORDER, THE LD. CIT(APPEALS) HAS NOT DISCUSSED THIS ISSUE AT ALL. IT HAS TO GO BACK TO THE A.O. BECAUSE NO DETAILS WERE SUBMITTED BEFOR E THE A.O. 5. ON THE OTHER HAND, THE LD. A.R. STRONGLY SUPPORT ED THE ORDER PASSED BY THE LD. CIT(APPEALS). 6. WE HAVE HEARD BOTH SIDES AND PERUSED THE RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WHEN A SUM OF ` 1,03,54,011/- HAS BEEN SHOWN AS OTHER INCOME BY T HE ASSESSEE, NO DETAILS WERE PRODUCED BEFORE THE A.O. AS PER TH E A.O., THIS AMOUNT WAS NOT REPORTED IN THE AUDIT REPORT. THE L D. CIT(APPEALS) WITHOUT CONSIDERING THE DETAILS, SIMPLY DELETED THE ADDITION MADE BY THE A.O. WE, THEREFORE, SET ASIDE THE ORDER PASSED BY THE LD. CIT(APPEALS) AND REMIT THE ISSUE BACK TO THE FILE O F THE A.O. TO EXAMINE THE ISSUE AFRESH, AFTER CONSIDERING THE DET AILS FILED BY THE ASSESSEE AND AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. 4 I.T.A. NO.1374/MDS/2014 ORDER PRONOUNCED ON FRIDAY, THE 20 TH OF MARCH, 2015 AT CHENNAI. SD/- SD/- ( . ) ( . ' #$ ) (A. MOHAN ALANKAMONY) (V. DURGA RAO) /ACCOUNTANT MEMBER % /JUDICIAL MEMBER /CHENNAI, > /DATED, THE 20 TH MARCH, 2015. KRI. ? . ,%0@A BA(0 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. ' C0 () /CIT(A)-III, CHENNAI-34 4. ' C0 /CIT, CHENNAI-III, CHENNAI-34 5. A E# ,%0% /DR 6. #$ F /GF.