ACIT, Circle-2(1), Visakhapatnam V. A V Vishnu Vara Prasad, Visakhapatnam

ITA 14/VIZ/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8666 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 05-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S ARAVINDAKSHAN
• Assessee Lawyers: C KAMESWARA RAO
• Section: 143(3); 54F

Judgement Text

ITA NOS.13&14/VIZAG/2018 SRI Y. VENKATA RAMANA, VSKP 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM , . . ! , #$ % BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER ./I.T.A.NOS.13/VIZAG/2018 ( / ASSESSMENT YEARS: 2010-11) THE ACIT, CIRCLE - 2(1) VISAKHAPATNAM Y. VENKATA RAMANA VISAKHAPATNAM [PAN NO. AAEPY7994F ] ( ' / APPELLANT) ( ()' / RESPONDENT) ./I.T.A.NOS.14/VIZAG/2018 ( / ASSESSMENT YEARS: 2010-11) THE ACIT, CIRCLE - 2(1) VISAKHAPATNAM A.V. VISHNU V ARA PRASAD VISAKHAPATNAM [PAN NO.ABDPA3411B] ( ' / APPELLANT) ( ()' / RESPONDENT) / APPELLANT BY : SHRI R.S. ARAVIN DAKSHAN, DR / RESPONDENT BY : SHRI C. KAMESWARA RAO, AR / DATE OF HEARING : 20.03.2018 / DATE OF PRONOUNCEMENT : 2 2.03.2018 ITA NOS.13&14/VIZAG/2018 SRI Y. VENKATA RAMANA, VSKP 2 / O R D E R PER DUVVURU R.L. REDDY, JUDICIAL MEMBER: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGA INST ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1 {CIT(A)} , VISAKHAPATNAM VIDE ITA NOS.203&204/2015-16/AC,C-2(1),VSP/2017-18 DATED 29.11.2017 FOR THE ASSESSMENT YEAR 2010-11. SINCE, THE FACTS ARE IDENTICAL AND ISSUES ARE COMMON, THEY ARE CLUBBED, HEARD TOGETHER AND DISPOSED-OFF BY WAY OF THIS COMMON ORDER FOR THE SA KE OF CONVENIENCE. 2. THE ONLY EFFECTIVE COMMON GROUND RAISED BY THE REVE NUE IN THESE APPEALS IS THAT THE CIT(A) HAS ERRED IN HOLDING THA T THE ASSESSMENT ORDER PASSED BY THE A.O. U/S 143(3) R.W.S. 263 OF T HE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') IS ERRONEOUS . SINCE THE FACTS AND ISSUES ARE COMMON IN BOTH THE APPEALS EXCEPT DIFFER ENCE IN FIGURES, WE TAKE ITA NO.14/VIZAG/2018 FOR ADJUDICATION FOR THE SAKE OF CONVENIENCE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED HIS RETURN OF INCOME ON 30.7.2010 FOR THE ASSESSMENT YEAR 2010-11 DECLARING TOTAL INCOME OF ` 49,69,760/- BY CLAIMING DEDUCTIONS OF ` 50,00,000/- U/S 54EC OF THE ACT AND ` 1,42,64,624/- U/S 54F OF THE ACT. THE CASE WAS SELECTED FOR SCRUTINY AND THE A.O. COMPLETED THE AS SESSMENT U/S 143(3) OF THE ACT ACCEPTING THE RETURNED INCOME. SUBSEQUE NTLY, THE CIT-1, ITA NOS.13&14/VIZAG/2018 SRI Y. VENKATA RAMANA, VSKP 3 VISAKHAPATNAM PASSED ORDER U/S 263 OF THE ACT BY SE TTING ASIDE THE ORDER PASSED U/S 143(3) AND DIRECTED THE A.O. TO DI SALLOW THE CLAIM OF EXEMPTION U/S 54EC AND 54F OF THE ACT AFTER AN OPPO RTUNITY OF HEARING TO THE ASSESSEE. CONSEQUENT TO THE ABOVE, THE A.O. ISSUED SHOW CAUSE NOTICE ASKING THE ASSESSEE TO SUBSTANTIATE THE CLAI M FOR DEDUCTION U/S 54F AND 54EC OF THE ACT. ACCORDINGLY, THE A.O. DIS ALLOWED THE DEDUCTION CLAIMED BY THE ASSESSEE FROM THE LONG TERM CAPITALS OF ` 50,00,000/- U/S 54EC AND ` 1,42,64,424/- U/S 54F OF THE ACT RESPECTIVELY AND THE A.O. THUS COMPLETED THE ASSESSMENT BY DETERMINING THE TO TAL INCOME AT ` 2,43,44,187/- 4. NOT BEING AGREED, THE ASSESSEES PREFERRED APPEAL S BEFORE THE CIT(A) AND THE LD. CIT(A) BY RELYING ON THE ORDER O F THE ITAT IN ITA NOS.177 & 178/VIZAG/2015 DATED 9.12.2016, ALLOWED T HE APPEALS OF THE ASSESSEES. 5. AGGRIEVED, THE REVENUE FILED THESE APPEALS BEFOR E US. THE LD. D.R. STRONGLY RELIED ON THE GROUNDS OF APPEAL AND T HE ORDERS PASSED BY THE A.O. 6. THE LD. A.R. SUBMITS THAT THE ORDERS PASSED U/S 263 OF THE ACT WERE QUASHED BY THE HONBLE ITAT VIDE ORDER (SUPRA) AND ALSO QUASHED BY THE HONBLE HIGH COURT OF ANDHRA PRADESH, THEREF ORE, THE ORDERS PASSED U/S 143(3) R.W.S. 263 OF THE ACT HAS NO LEGS TO STAND. ITA NOS.13&14/VIZAG/2018 SRI Y. VENKATA RAMANA, VSKP 4 7. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. IN THESE CASES, THE ORDERS PASSED U/S 143(3) OF THE AC T WERE QUASHED BY THE CIT BY PASSING AN ORDER U/S 263 OF THE ACT HOLD ING THAT THE ASSESSMENTS ARE ERRONEOUS AND PREJUDICIAL TO THE IN TEREST OF THE REVENUE. BASED ON THE DIRECTIONS OF CIT, THE A.O. HAS COMPLETED ASSESSMENTS BY GIVING EFFECT TO THE ORDERS PASSED U /S 263 OF THE ACT. ON APPEAL, THE LD. CIT(A) BY CONSIDERING THE ORDERS PASSED BY THE COORDINATE BENCH OF THIS TRIBUNAL IN ITA NOS.177 & 178/VIZAG/2015 DATED 9.12.2016 (AGAINST THE ORDER PASSED BY CIT U/ S 263 OF THE ACT) QUASHED THE ORDERS PASSED U/S 143(3) R.W.S. 263 OF THE ACT, SINCE THE ORDERS PASSED BY THE CIT U/S 263 OF THE ACT WERE QU ASHED BY THE ITAT AS WELL AS THE HONBLE JURISDICTIONAL HIGH COURT. 8. AFTER CONSIDERING THE FINDINGS OF THE LD. CIT(A) , WE DO NOT FIND ANY INFIRMITY IN THE ORDERS PASSED BY THE LD. CIT(A), H ENCE, NEEDS NO INTERFERENCE. THEREFORE, WE RESTORE THE ASSESSMENT ORDERS PASSED BY THE A.O. U/S 143(3) OF THE ACT. ITA NOS.13&14/VIZAG/2018 SRI Y. VENKATA RAMANA, VSKP 5 9. IN THE RESULT, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT O N 22 ND MAR18. SD/- SD/- ( ) ( . . ! ) (B.R. BASKARAN) (DUVVURU R.L. REDDY) /ACCOUNTANT MEMBER #$ /JUDICIAL MEMBER # /VISAKHAPATNAM: ' /DATED : 22.03.2018 VG/SPS )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ACIT, CIRCLE-2(1), VISAKHAPA TNAM 2. / THE RESPONDENT SRI Y. VENKATA RAMANA, 10-50-19 /1, SOUDAMINI, SIRIPURAM, VISAKHAPATNAM 3. / THE RESPONDENT SRI A.V. VISHNU VARA PRASAD, 10 -50-19/1, SOUDAMINI, SIRIPURAM, VISAKHAPATNAM 3. + / THE PRINCIPAL CIT-1, VISAKHAPATNAM 4. + ( ) / THE CIT (A)-1, VISAKHAPATNAM 5. # . , . , # / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM