ACIT, Central Circle, Tirupathi V. Sri G. Srinivasulu Reddy, Hyderabad

ITA 1532/HYD/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69890 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 25-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V RAGHAVENDRA RAO
• Keywords: Reasonable cause
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 1560/HYD/2011 A.Y. 2002-03 ITA NO. 1561/HYD/2011 A.Y. 2003-04 ITA NO. 1562/HYD/2011 A.Y. 2004-05 ITA NO. 1563/HYD/2011 A.Y. 2005-06 ITA NO. 1564/HYD/2011 A.Y. 2006-07 ITA NO. 1565/HYD/2011 A.Y. 2007-08 SRI G. SRINIVASULU REDDY HYDERABAD PAN: AFYPG4605E VS. THE ASST. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE TIRUPATI APPELLANT RESPONDENT ITA NO. 1532/HYD/2011 A.Y. 2007-08 THE ASST. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE TIRUPATI VS. SRI G. SRINIVASULU REDDY HYDERABAD PAN: AFYPG4605E APPELLANT RESPONDENT ASSESSEE BY : SRI V. RAGHAVENDRA RAO REVENUE BY: SRI S O LGY JOSE T. KOTTARAM DATE OF HEARING: 29 .10.2013 DATE OF PRONOUNCEMENT: 29.10.2013 O R D E R PER CHANDRA POOJARI, AM: THE APPEALS IN ITA NOS. 1560 TO 1565/HYD/2011 ARE BY THE ASSESSEE AND ITA NO. 1532/HYD/2011 IS BY THE DEPARTM ENT, DIRECTED AGAINST DIFFERENT ORDERS OF THE CIT(A)-VII, HYDERABAD FOR ASSESSMENT YEARS 2002-03 TO 2007-08. SINCE THE ISSUES INVOLVE D IN THESE APPEALS ARE COMMON IN NATURE AND BELONG TO SAME ASS ESSEE, ALL THESE APPEALS ARE CLUBBED TOGETHER, HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER, FOR THE SAKE OF C ONVENIENCE. 2. THE ASSESSEE IN HIS APPEALS BESIDES RAISING VARIOUS GROUNDS ON MERIT ALSO RAISED THE FOLLOWING LEGAL GROUNDS: ITA NO. 1560/HYD/2011 & ORS. SRI G. SRINIVASULU REDDY ======================== 2 2(A) THE PROCEEDINGS U/S. 153C OF THE IT ACT AGAINS T THE ASSESSEE ARE NOT VALID IN LAW BECAUSE THE SATISFACTION AS REQUIRED U/S. 153C HAS NOT BEEN REACHED OR RECORDED IN THE COURSE OF PROCEEDINGS U/S. 153A IN THE CASE OF SEARCHED PERSON. THE RATIO OF THE DECISION OF THE SUPREME COURT IN THE CASE OF MANISH MAHESWARI VS. CIT (289 ITR 341) APPLIES. 2(B) THE PROCEEDINGS U/S. 153C ARE INVALID IN LAW ALSO FOR THE REASON THAT THE ACCOUNT BOOKS OR DOCUMENTS OR OTHER VALUABLES BELONGING TO THE ASSESSEE FOUND OR SEIZED IN THE COURSE OF SEARCH PROCEEDINGS HAVE NOT BEEN SPECIFIED. 3. THE ABOVE GROUNDS, 2(A) AND 2(B), ARE LEGAL GROUNDS WHICH GO TO THE ROOT OF THE MATTER AND THE AR FAIRLY CONCEDED THAT THESE GROUNDS WERE NOT RAISED BEFORE THE CIT(A). HE SUBMI TTED THAT THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE IN NOT R AISING THESE GROUNDS BEFORE THE LOWER AUTHORITIES. HE PRAYED TH AT THESE GROUNDS ARE TO BE ADMITTED FOR ADJUDICATION. 4. THE LEARNED DR SUBMITTED THAT AS THE ASSESSEE HAS R AISED THESE GROUNDS FOR THE FIRST TIME BEFORE THE TRIBUNA L, THESE GROUNDS MAY BE REMITTED BACK TO THE CIT(A) FOR ADJUDICATION. 5. WE HAVE HEARD BOTH THE PARTIES REGARDING ADMISSION OF THESE GROUNDS. IN OUR OPINION, THESE GROUNDS ARE RAISED F OR THE FIRST TIME BEFORE US. IT IS APPROPRIATE TO REMIT THESE GROUND S TO THE CIT(A) FOR ADJUDICATION AFTER VERIFICATION OF THE RECORD WHILE CALLING A REMAND REPORT FROM THE AO. ACCORDINGLY, THE ABOVE GROUNDS, 2(A) AND 2(B), ARE REMITTED BACK TO THE CIT(A) FOR HIS CONSIDERATIO N. 6. AT THIS STAGE WE REFRAIN OURSELVES FROM GOING INTO T HE OTHER GROUNDS RAISED BY THE ASSESSEE ON MERIT OF THE ADDI TIONS MADE BY THE AO AS THE ABOVE LEGAL GROUNDS GO TO THE ROOT OF THE MATTER. ITA NO. 1560/HYD/2011 & ORS. SRI G. SRINIVASULU REDDY ======================== 3 7. FURTHER, THE REVENUE APPEAL IN ITA NO. 1532/HYD/2011 , RELATING TO A.Y. 2007-08, IS A CROSS APPEAL, WHERE T HE ASSESSEE IS ALSO IN APPEAL BEFORE US IN ITA NO. 1565/HYD/2011. SINCE WE HAVE REMITTED TO THE ISSUE TO THE CIT(A) TO ADJUDICATE ON THE LEGAL ISSUE, THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL BE COME INFRUCTUOUS. ACCORDINGLY, THE REVENUE APPEAL IS DI SMISSED BEING INFRUCTUOUS. HOWEVER, THE DEPARTMENT HAS THE LIBE RTY TO PREFER AN APPEAL BEFORE US IF THERE IS ANY GRIEVANCE AFTER TH E CIT(A) PASSED THE CONSEQUENTIAL ORDER IN THIS CASE. 8. IN THE RESULT, ASSESSEE'S APPEALS IN ITA NOS. 1560 T O 1565/ HYD/2011 ARE ALLOWED FOR STATISTICAL PURPOSES AND R EVENUE APPEAL IN ITA NO. 1532/HYD/2011 IS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH OCTOBER, 2013. SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 29 TH OCTOBER, 2013 TPRAO COPY FORWARDED TO: 1. SRI G. SRINIVASULU REDDY, FLAT NO. 402, MAHALAXMI M ANSION, B.K. GUDA, SANJEEVAREDDY NAGAR, HYDERABAD. 2. THE ASST. CIT, CENTRAL CIRCLE, TIRUPATI. 3 . THE CIT(A) - VII, HYDERABAD. 4 . THE CIT (CENTRAL), HYDERABAD. 5 . THE DR 'B' BENCH, ITAT, HYDERABAD