T.Ramesh, Warangal, Hyderabad V. ACIT, Central Circle-1, Hyderabad, Hyderabad

ITA 1448/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6444 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 15-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 30-12-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Assessee Lawyers: A V RAGHURAM
• Keywords: Non compliance; Revised return
• Section: 143(3); 132

Judgement Text

ITA NOS 280 281 OF 2014 1447 1448 AND 1449 OF 2015 T RAMESH WARANGAL PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SMT. P.MADHAVI DEVI, JUDICIAL MEMBER ITA NOS.280 & 281/HYD/2014 (ASSESSMENT YEARS: 2008-09 & 2009-10) DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, HYDERABAD VS. DR. T. RAMESH HANAMKONDA WARANGAL PAN: ABAPT 0902 D (APPELLANT) (RESPONDENT) ITA NOS.1447, 1448 & 1449/HYD/2015 (A.Y 2008-09, 2009-10 & 2010-11) DR. T. RAMESH HANAMKONDA WARANGAL PAN: ABAPT 0902 D VS. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, HYDERABAD (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI M. SITARAM, DR FOR ASSESSEE : SHRI A.V. RAGHURAM DATE OF HEARING : 15.06.2016 DATE OF PRONOUNCEMENT : 17 .06.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. ALL ARE CROSS APPEALS FOR THE A.YS 2008-09, 2009- 10 AND 2010-11. THERE ARE THREE ASSESSEES APPEALS AND TWO REVENUES APPEALS. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A RADIOLOGIST. HE FILED HIS ORIGINAL RETURN OF INCOME ON 30.09.200 8 FOR THE A.Y 2008-09, ADMITTING INCOME OF RS.8,41,610. THEREAFTE R, HE FILED A ITA NOS 280 281 OF 2014 1447 1448 AND 1449 OF 2015 T RAMESH WARANGAL PAGE 2 OF 4 REVISED RETURN OF INCOME ON 18.05.2010 ADMITTING AN INCOME OF RS.65,88,610. THERE WAS A SEARCH & SEIZURE OPERATIO N U/S 132 OF THE I.T. ACT IN THE GROUP OF M/S. PRATHIMA EDUCATIO NAL SOCIETY ON 10.09.2009. ASSESSEE IS ALSO ONE OF THE RELATED PER SONS OF THE GROUP. DOCUMENTS BELONGING TO THE ASSESSEE WERE ALS O SEIZED FROM THE PREMISES OF PRATHIMA EDUCATIONAL SOCIETY. CONSEQUENT TO THE SEARCH, A NOTICE U/S 153C OF THE I.T. ACT WA S ISSUED TO THE ASSESSEE ON 13.07.2010 FOR THE A.YS 2004-05 TO 2009 -10 AND THE ASSESSMENT WAS COMPLETED BY BRINGING TO TAX UNDISCL OSED INCOME OF RS.1,75,00,000/- ON ACCOUNT OF CAPITATION FEE RECEIVED BY HIM. SIMILAR ADDITIONS WERE MADE IN A.YS 2009-10 AND 2010- 11 AS WELL. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO GRANTED PARTIAL RELIEF TO THE ASSESSEE AND AGGRIEVED BOTH THE REVENUE AS WELL AS THE ASSESSEE ARE IN SEC OND APPEAL BEFORE US. 3. THE ASSESSEE HAS CHALLENGED THE ADDITIONS MADE B Y THE AO FOR ALL THE YEARS AND HAVE ALSO FILED AN ADDITIONAL GROUND OF APPEAL CHALLENGING THE ASSUMPTIONS OF JURISTICTION U/S 153C OF THE ACT WITHOUT RECORDING THE SATISFACTION AS REQUI RED UNDER THE PROVISIONS OF LAW. IN THE APPLICATION FILED UNDER R ULE 11 OF THE ITAT RULES, THE ASSESSEE SUBMITTED THAT THE GROUND WITH REGARD TO THE NON COMPLIANCE OF THE PROVISIONS OF SECTION 153C OF THE I.T. ACT WAS NOT RAISED BEFORE THE AUTHORITIES, BUT IS RAISED BEFORE THE TRIBUNAL FOR THE FIRST TIME ON THE BASIS OF THE CBDT CIRCULAR NO.24 OF 2015 DATED 31.12.2015 AND THEREFORE, HE PR AYED THAT THE ADDITIONAL GROUND MAY BE ADMITTED AND ADJUDICAT ED. AS PER THE CBDT CIRCULAR (CITED SUPRA), AOS WERE DIRECTED TO WITHDRAW THE APPEALS WHEREVER THE SATISFCATION HAS NOT BEEN RECORDED AS ITA NOS 280 281 OF 2014 1447 1448 AND 1449 OF 2015 T RAMESH WARANGAL PAGE 3 OF 4 REQUIRED U/S 153C OF THE ACT. IN VIEW OF THE SAME, WE ADMIT THE ADDITIONAL GROUND OF APPEAL. ON THE EARLIER DATE OF HEARING, THIS BENCH HAS DIRECTED THE LEARNED DR TO GET THE INFORM ATION AS TO WHETHER THE SATISFACTION HAS BEEN RECORDED AS REQU IRED U/S 153C OF THE ACT. 4. AT THE TIME OF HEARING, THE LEARNED DR HAS FILED A LETTER STATING THAT THERE IS NO RECORDED SATISFACTION AVAI LABLE ON THE FILE OF THE PERSON SEARCHED OR THE ASSESSEE HEREIN FOR A LL THE A.YS BEFORE US. TAKING THE SAME INTO CONSIDERATION AND A LSO THE CBDT CIRCULAR (SUPRA), WE HOLD THAT RECORDING OF SATISFA CTION IN THE CASE OF THE PERSONS SEARCHED IS SINE QUA NON A CON DITION PRECEDENT FOR INITIATING THE PROCEEDINGS U/S 153C A ND THEREFORE ASSESSMENT ORDERS PASSED U/S 143(3) R.W.S. 153C OF THE ACT FOR THE A.Y 2008-09, 2009-10 AND 2010-11 ARE VOID AB INITO . ASSESSMENT ORDERS ARE THEREFORE, QUASHED. IN VIEW O F THE QUASHING OF THE ASSESSMENT ORDERS FOR ALL THE YEARS , THE APPEALS FILED BY THE REVENUE AND THE GROUNDS RAISED BY THE ASSESSEE ON MERITS IN ASSESSEES APPEALS HAVE BECOME INFRUCTUOU S. 5. IN THE RESULT, ADDITIONAL GROUND OF APPEAL IN AL L THE A.YS FILED BY THE ASSESSEE IS ALLOWED. THE OTHER GROUNDS OF APPEAL OF THE ASSESSEE AND ALSO THE APPEALS OF THE REVENUE AR E DISMISSED AS INFRUCTUOUS. THUS, ASSESSEES APPEALS ARE PARTLY ALLOWED AND REVENUES APPEALS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH JUNE, 2016. S D/ - S D/ - (J. SUDHAKAR REDDY) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 17 TH JUNE, 2016. ITA NOS 280 281 OF 2014 1447 1448 AND 1449 OF 2015 T RAMESH WARANGAL PAGE 4 OF 4 VNODAN/SPS COPY TO: 1. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1, 7 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500004 2. DR. T. RAMESH, PROP. M/S. VENKATESHWARA IMAGINE CEN TRE, H.NO.6-2-59, KALKAJI COLONY, HANAMKONDA 3. CIT(A) -1 HYDERABAD 4. CIT (CENTRAL), HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER