Income Tax Officer, Ward-15(3), Hyderabad V. N.Kalavathi , Secunderabad

ITA 1499/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9934 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 19-03-2019
• Assessment Year: 2001-2002
• Appeal Filed On: 06-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: A V RAGHURAM
• Keywords: Unexplained investment; Opportunity of being heard; Additional evidence
• Section: 147; 69; 148; 144; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B - SMC, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NOS.1499 & 1500/HYD/2018 ASSESSMENT YEAR: 2001 - 02 & 2002 - 03 N. KALAVATHI, SECUNDERABAD. PAN: ADJPN 2740 A VS. ITO, WARD - 15(3), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI A.V. RAGHURAM REVENUE BY: SRI NILANJAN DEY, DR DATE OF HEARING: 19/03/2019 DATE OF PRONOUNCEMENT: 29 /03/2019 ORDER PER SMT. P. MADHAVI DEVI, J.M.: BOTH ARE THE ASSESSEES APPEALS FOR THE ASSESSMENT YEARS 2001 - 02 AND 2002 - 03 AGAINST THE ORDERS OF THE CIT(A) - 7, HYDERABAD DATED 09/04/2018 RESPECTIVELY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL. THERE WAS A SURVEY IN THE CASE OF M/S. LAKSHMI SRINIVASA FINANCE CORPORATION ON 05/12/2003 WHEREIN MATERIAL EVIDENCING CERTAIN RENTAL INCOME AND INVESTMENTS RELAT ING TO THE ASSESSEE WERE FOUND. THEREFORE, THE ASSESSMENT WAS REOPENED U/S 147 OF THE ACT. BUT, SINCE THE ASSESSEE DID NOT REPLY TO THE NOTICES ISSUED U/S 148 OF THE ACT, THE ASSESSMENTS WERE 2 COMPLETED U/S 144 OF THE ACT. AGGRIEVED, ASSESSEE PREFERRED AN A PPEAL BEFORE THE CIT(A), WHO DELETED THE ADDITIONS MADE TOWARDS INTEREST ON DEPOSITS AND UNEXPLAINED INVESTMENTS U/S 69 OF THE ACT. THE CIT(A), WHILE ALLOWING THE PARTIAL RELIEF TO THE ASSESSEE HAD RELIED UPON THE ADDITIONAL EVIDENCE SUBMITTED BY THE ASSE SSEE AGAINST THE ADDITIONS OF UNEXPLAINED INVESTMENT U/S 69 WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSING OFFICER TO VERIFY THE SAME. THEREFORE, ON AN APPEAL BY THE REVENUE, ITAT RESTORED THE MATTER TO THE FILE OF THE A.O. FOR DECIDING THE ISSUES AFRESH AFTER GIVING THE ASSESSEE A FAIR OPPORTUNITY OF HEARING. CONSEQUENT THERETO, THE A.O. ISSUED NOTICE U/S 143(2) A ND IN RESPONSE TO THE SAME, THE ASSESSEES SON MR. N. NAVODAYA APPEARED AND HIS STATEMENT WAS RECORDED , WHEREIN HE WAS ASKED TO PRODUCE ADDITI ONAL EVIDENCE WHICH WAS PRO DUCED BEFORE THE CIT(A). 3. IN HIS STATEMENT MR. NAVODAYA SUBMITTED THAT HIS MOTHER, WHO IS THE ASSESSEE HEREIN, IS AN ILLITERATE AND WAS SUFFERING WITH PSEUDO BALMA DESEASE , DUE TO WHICH , SHE WAS NOT ABLE TO ATTEND ANY OF THE HEARINGS AND HE WAS AUTHORISED TO REPRESENT ON HER BEHALF. HE SOUGHT TIME TO FILE THE DETAILS BY 10/01/2016 . HOWEVER, NEITHER THE ASSESSEE NOR H ER SON APPEARED, NOR FILED ANY DOCUMENTS BEFORE THE A.O. THEREFORE, THE ASSESSMENT WAS 3 COMPLETED EX - PARTE AFTER VERIFYING THE IMPOUNDED MATERIAL MARKED AS A16 AND A17 WHEREIN THE INVESTMENTS MADE BY THE ASSESSEE IN M/S. LAXMI SRINIVASA FINANCE CORPORATION MONTH WISE WERE MENTIONED. 4. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A) STATING THAT T HE ASSESSEE HAD FILED ALL THE RELEVANT MATERIAL BEFORE THE A.O. HE FURTHER FILED CERTAIN ADDITIONAL EVIDENCE FOR ADMISSION AND THE CIT(A) FORWARDED THE SAME TO THE ASSESSING OFFICER VIDE LETTER DATED 04/09/2017 FOR SUBMISSION OF THE REMAND REPORT. THE AS SESSING OFFICER SUBMITTED THE REMAND REPORT ON 14/03/2018 STATING THAT CERTAIN FURTHER DOCUMENTS WERE CALLED FOR BUT NEITHER THE ASSESSEE NOR HER AR APPEARED, NOR FURNISHED ANY DOCUMENTS FOR VERIFICATION AND THEREFORE, HE PRAYED THAT THE ASSESSMENT MADE BY THE A.O. BE CONFIRMED. IN RESPONSE TO THE REMAND REPORT, THE ASSESSEE FILED WRITTEN SUBMISSIONS ALONG WITH AN AFFIDAVIT STATING THAT THE ASSESSEE HAS NOT RECEIVED THE NOTICE FROM THE ASSESSING OFFICER CALLING FOR INFORMATION, AS AT THE RELEVANT POINT OF TIME , THE ASSESSEE WAS STAYING AT H.NO. 12 - 1 - 1356, SHANTHI NAGR, NORTH LALAGUDA, SECUNDERABAD AND THE NOTICE WAS SERVED ON THE EARLIER ADDRESS. FURTHER, IT WAS SUBMITTED THAT THE ASSESSEE HAS ALL THE INFORMATION WHICH WAS CALLED FOR BY THE ASSESSING OFFIC ER AND 4 THE ASSESSEE IS READY TO SUBMIT THE SAME BEFORE THE ASSESSING OFFICER, PROVIDED THE ASSESSEE IS GIVEN ONE MORE OPPORTUNITY. THE CIT(A), HOWEVER, DID NOT ACCEPT THE ASSESEES CONTENTIONS AND CONFIRMED THE ASSESSMENT ORDER BY OBSERVING THAT THE ASSESS EE HAS NOT FILED THE RELEVANT MATERIAL BEFORE THE CIT(A) AND IS SEEKING REMAND TO THE ASSESSING OFFICER WITHOUT ANY BASIS. AGGRIEVED BY THE ORDER OF THE CIT(A), ASSESSEE IS IN APPEAL BEFORE US. 5. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN FORM NO.35, THE ASSESSEE HAD GIVEN THE ADDRESS OF HER COUNSEL BUT THE COUNSEL HA S NOT RECEIVED ANY NOTICE S FROM THE ASSESSING OFFICER DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE THE CIT(A). HE THERE FORE PRAYED THAT THE MATTER MAY BE REMANDED TO THE FILE OF THE A.O FOR GIVING THE ASSESSEE AN OPPORTUNITY TO PRESENT HER CASE. 6. LEARNED DEPARTMENTAL REPRESENTATIVE WAS ALSO HEARD. THE ASSESSEE HAS FILED PAPER BOOKS WHICH CONTAIN THE COPIES OF ADDITIONA L EVIDENCE FILED BEFORE THE CIT(A) AND ALSO ALL THE EVIDENCE FILED BEFORE THE A.O. SINCE THE A.O. AND THE CIT(A) HAVE OBSERVED THAT THE ASSESSEE HAS NOT FILED THE NECESSARY DETAILS, EVEN DURING THE APPEAL PROCEEDINGS, I AM INCLINED TO SET - ASIDE THE ISSUE TO THE FILE OF THE A.O. WITH A DIRECTION TO ASSESSEE TO 5 COOPERATE WITH THE ASSESSING OFFICER BY FILING NECESSARY DETAILS AND TH E ASSESSING OFFICER SHALL RECONSIDER THE ISSUE AFRESH AFTER GIVING THE ASSESSEE A FAIR OPPORTUNITY OF BEING HEARD. THUS, THE APPEALS OF THE ASSESSEE FOR BOTH THE A.YS ARE ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN C OURT ON 29 TH MARCH, 2019. SD/ - (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED: 29 TH MARCH , 2019 OKK COPY TO: - 1) K.VASANTKUMAR, A.V. RAGHURAM, P. VINOD & M. NEELIMA DEVI, ADVOCATES, 610, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD - 1. 2) INCOME TAX OFFICER, WARD - 15(3), IT TOWERS, AC GUARDS, HYDERABAD. 3) THE CIT(A) - 7 , HYDERABAD 4) THE PR. CIT - 7 , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE