Venu Kumar Daram , Hyderabad V. Income Tax Officer, Ward-6(2), Hyderabad

ITA 142/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8458 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 01-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K A SAI PRASAD
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 142/HYD/2019 ASSESSMENT YEAR: 2014-15 VENU KUMAR DARAM, HYDERABAD [PAN: AIFPD7450E] VS INCOME TAX OFFICER, WARD-6(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.A.SAI PRASAD, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 23-02-2021 DATE OF PRONOUNCEMENT : 24-03-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2014-15 ARISES FROM TH E CIT(A)-6, HYDERABADS ORDER DATED 25-10-2018 PASSED IN APPEAL NO.10111 / 2017-18 / A3 / CIT(A)-6 IN PROCEE DINGS U/S.144 OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT ]. HEARD BOTH PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE AVERMENTS IN HIS GROUNDS IS THAT THE C IT(A) HAS ERRED IN LAW AND ON FACTS IN NOT CONDONING 290 DA YS DELAY THEREBY AFFIRMING THE ASSESSING OFFICERS ACTION ADDIN G AN ITA NO. 142/HYD/2019 :- 2 -: AMOUNT OF RS.49,05,500/- AS PEAK OF THE CASH CREDITS I N HIS BANK ACCOUNT. WE NOTICE AT THE OUTSET THAT THE LOWER APPELL ATE ORDER UNDER CHALLENGE HAS BEEN PASSED EX-PARTE WITHOUT EVEN GIVING ADEQUATE OPPORTUNITY TO THE ASSESSEE TO EXPLAIN THE SAME. HON'BLE APEX COURTS LANDMARK DECISION IN COL LECTOR, LAND ACQUISITION VS. MST.KATIJI & ORS [167 ITR 471] (S C) AND IN UNIVERSITY OF DELHI VS. UNION OF INDIA, CIVIL AP PEAL NOS.9488 & 9489/2019, DT.17-12-2019 HOLD THAT SUCH A DELAY; IF SUPPORTED BY THE COGENT REASONS MUST MAKE WAY FOR THE C AUSE OF SUBSTANTIAL JUSTICE. IT IS NOT IN DISPUTE THAT THE ASS ESSING OFFICER HAD FRAMED SECTION 144 ASSESSMENT U/S.143(3) WHICH REMAINS TO BE THE SOLE REASON OF THE FOREGOING DELAY O N ASSESSEES PART. WE THEREFORE CONDONE THE SAME AS OWIN G TO CIRCUMSTANCES BEYOND THE TAXPAYERS CONTROL. 3. WE NEXT ADVERT TO THE ISSUE OF UN-EXPLAINED CASH CRE DIT ADDITION OF RS.49,05,500/-. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT THE ASSESSEES TURNO VER ITSELF IN WHOLESALE SUPPLIES OF MEDICAL EQUIPMENT BUS INESS IS RS.4,52,23,905/- PRIMA-FACIE FORMING THE SOURCE OF THE CASH CREDITS PER SE. IT THEREFORE EMERGES AS AN INSTANCE OF LACK OF RECONCILIATION BETWEEN ASSESSEES TURNOVER VIS--VIS THE PEAK SUM OF THE CASH CREDITS ADDITION WHICH REQUIRES AFRES H FACTUAL VERIFICATION. WE THEREFORE DEEM IT APPROPRIATE TO REST ORE THE INSTANT ISSUE BACK TO THE ASSESSING OFFICER WITH A RIDER THAT THE ASSESSEE OR HIS AUTHORISED REPRESENTATIVE SHALL AP PEAR BEFORE HIM ON OR BEFORE 31-08-2021 ALONG WITH ALL TH E RELEVANT DETAILS OF THE TURNOVER AS WELL AS BANK STATEMENTS ITA NO. 142/HYD/2019 :- 3 -: RECONCILIATION TO BE FOLLOWED BY THREE EFFECTIVE OPPO RTUNITIES OF HEARING AT HIS OWN RISK AND RESPONSIBILITY. 4. THIS ASSESSEES APPEAL IS TREATED AS ALLOWED FOR S TATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH MARCH, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 24-03-2021 TNMM ITA NO. 142/HYD/2019 :- 4 -: COPY TO : 1.VENU KUMAR DARAM, C/O. CH.PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST.NO.1, ASHOKNAGAR, HYDERABAD. 2.THE INCOME TAX OFFICER, WARD-6(2), HYDERABAD. 3.CIT(APPEALS)-6, HYDERABAD. 4.PR.CIT-6, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.