Asst. Commissioner of Income Tax, Circle-9(1), Hyderabad V. Vedula Venkata Ramana, Hyderabad

ITA 1555/Hyd/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0123 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 06-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘B’ BENCH, HYDERABAD. BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.1555/Hyd/2017 (Assessment Year : 2014-15) Asst. Commissioner of Income Tax, Circle 9(1), Hyderabad. .....Appellant. Vs. Shri Vedula Venkata Ramana, Hyderabad. PAN ABHPV1213E .....Respondent. Appellant By : Shri YVST Sai (D.R.) Respondent By : None. Date of Hearing : 13.12.2021. Date of Pronouncement : 17.01.2022. O R D E R Per Shri S.S. Godara, J.M. : This Revenue’s appeal for Asst. Year 2014-15 arises from the Commissioner of Income Tax (Appeals)-7, Hyderabad’s order dt.02.05.2017 passed in case No.447/CIT(A)-7/2016-17 in proceedings under Section 143(3) of Income Tax Act, 1961 (‘the Act’). 2 ITA No.1555/Hyd/2017 Case called twice. None appeared at assessee's behest. We accordingly proceeded exparte against him. 2. The Revenue’s pleads the following substantive grounds : 3 ITA No.1555/Hyd/2017 3. Learned CIT, DR invited our attention to the CIT(A)’s detailed discussion quashing the impugned assessment as an invalid one as follows : 4 ITA No.1555/Hyd/2017 5 ITA No.1555/Hyd/2017 6 ITA No.1555/Hyd/2017 4. Mr. Sai next contended during the course of hearing that the CIT(A) has erred in law and on facts in annulling the impugned assessment on the ground that the PCIT concerned has accepted the Assessing Officer’s proposal to convert the “limited” scrutiny to a “complete” one on 22.12.2016 followed by the final assessment order passed on 31.12.2016 without affording opportunity to the assessee. 5. We note with the revenue’s assistance that the reason of the assessee's “limited” scrutiny herein was regarding the assessee’s cash deposit in savings account(s) as more than the turnover only. And that the Assessing Officer had duly taken note of the fact that the assessee had made huge cash deposits in his OD account whilst sending his proposal to the PCIT. We make it clear that there is no material on record which could indicate the assessee to have either declared or explained source of his cash deposits made in the undisclosed bank account concerned. A perusal of the assessment order sufficiently reveals that it was only after the assessee's failure to explain source of his deposits and other issues that the Assessing Officer sought for PCIT’s approval in issue which stood accepted on 22.12.2016. We observe in this factual backdrop that the Assessing Officer’s failure, if at all, in issuing notice of “complete” notice to the assessee between 22.12.2016 to 31.12.2016 was only a procedural one only which could not be held to have vitiated 7 ITA No.1555/Hyd/2017 the entire assessment proceedings as a non-est one as held in the CIT(A)’s order under challenge. We therefore reverse lower appellate findings to this effect and restore the Revenue’s sole substantive ground raised in the instant appeal back to the Assessing Officer for his afresh factual verification/adjudication qua all the issues following subject matter of “complete” scrutiny as per law within three effective opportunities of hearing. Ordered accordingly. 6. This Revenue’s appeal is allowed for statistical purposes in above terms. Order pronounced in the open court on 17th Jan., 2022. Sd/- Sd/- (A.MOHAN ALANKAMONY) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.17.01.2022. * Reddy gp Copy to : 1. Shri Vedula Venkata Ramana, 17-1-388/60, Plot No.60/A,Laxminagar Colony, Saidabad, Hyderabad-500 059 2. ACIT, Circle 9(1), Hyderabad. 3. Pr. C I T-7, Hyderabad. 4. CIT(Appeals)-7, Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.