Nexus Feeds Limited, Hyderabad V. Dy. Commissioner of Income Tax, Circle-16(1), Hyderabad

ITA 1559/Hyd/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9423 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 28-03-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN KATTA
• Keywords: Revised return
• Section: 143(3); 115JB; 131; 68

Judgement Text

ITA NO 1559 OF 2017 NEXUS FEEDS LTD HYDERABAD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1559/HYD/2017 (ASSESSMENT YEAR: 2013-14) M/S. NEXUS FEEDS LIMITED HYDERABAD PAN:AADCN2786N VS DY. COMMISSIONER OF INCOME TAX, CIRCLE 16(1) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI M.V. PRASAD FOR REVENUE : SHRI KIRAN KATTA, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAIN ST THE ORDER OF THE CIT (A)-4, HYDERABAD, DATED 17.07. 2017. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY FILED ITS RETURN OF INCOME FOR THE A.Y 2013-14 ON 3 0.09.2014 ADMITTING TOTAL INCOME OF RS.6,66,87,490/- AND BOOK PROFIT U/S 115JB AT RS.6,23,31,937/-. THE RETURN OF INCOME WAS SELECTED FOR SCRUTINY AND DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE ASSESSEE WAS REQUIRED TO FILE CERTAIN INFO RMATION WHICH WAS FILED BY THE ASSESSEE. THE AO NOTICED THAT THER E WAS A SURVEY CONDUCTED ON 22.1.15 DURING WHICH THE STATEMENT OF THE MANAGING DIRECTOR OF THE ASSESSEE COMPANY SRI GOLUG URI DATE OF HEARING : 28.03.2019 DATE OF PRONOUNCEMENT : 05.04.2019 ITA NO 1559 OF 2017 NEXUS FEEDS LTD HYDERABAD. PAGE 2 OF 4 RAMAKRISHNA REDDY WAS RECORDED ADMITTING AN INCOME OF RS.22.00 CRORES FOR THE A.YS 2013-14 TO 2015-16 AND THAT HE OFFERED TO FILE A REVISED RETURN OF INCOME ACCORDIN GLY. 3. BUT THE AO NOTICED THAT THE ASSESSEE DID NOT FIL E THE REVISED RETURN AS ADMITTED. THEREFORE, A SHOW-CAUSE NOTICE WAS ISSUED TO THE ASSESSEE ON 18.01.16. THE ASSESSEE IN ITS REPLY DATED 27.01.2016 STATED THAT ON VERIFICATION OF THE SHARE CAPITAL PARTICULARS WITH ITS BOOKS OF ACCOUNT, DOCUMENTS FI LED WITH MCA, SHAREHOLDERS LIST AND OTHER DOCUMENTS, THERE WAS NO DISCREPANCY AND THEREFORE, ADDITIONAL INCOME DECLARED DURING TH E SURVEY WAS NOT REQUIRED TO BE ADMITTED IN THE RETURN OF INCOME . THE AO HOWEVER, DID NOT ACCEPT THE ASSESSEES CONTENTION. HE HELD THAT THE STATEMENT GIVEN U/S 131 HAS AN EVIDENTIAL VALUE AND SINCE THE M.D. ADMITTED ADDITIONAL INCOME, THE DEPARTMENT WAS PREVENTED FROM CAUSING FURTHER INVESTIGATION AND AFTER LAPSE OF MORE THAN A YEAR, THE ASSESSEE IS TRYING TO EXPLAIN THE DISCREP ANCIES WHEN IT IS NOT POSSIBLE TO CAUSE INQUIRIES WITH REGARD TO THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE INVESTORS. HE, THEREFORE, TREATED THE SHARE CAPITAL AS UNEXPLAINED CASH CREDI T U/S 68 TO THE EXTENT OF RS.5,57,00,000/- AND BROUGHT IT TO TAX. 4. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT (A) STATING THAT THE ASSESSEE HAS PROVIDED ALL THE DETAILS BEFORE THE AO, BUT WITHOUT VERIFYING THE SAME, THE AO HAS MADE THE ADDITION ONLY ON THE BASIS OF THE STATEMENT THE M.D OF THE ASSESSEE COMPANY DURING THE COURSE OF SURVEY WHEREI N HE HAD ADMITTED TO ADDITIONAL INCOME. THE CIT (A), HOWEVER , CONFIRMED ITA NO 1559 OF 2017 NEXUS FEEDS LTD HYDERABAD. PAGE 3 OF 4 THE ORDER OF THE AO AND THE ASSESSEE IS IN SECOND A PPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO THE FACTS AND ALSO THE LAW APPLICABLE TO THE FACTS OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS NOT JUSTIFIED IN DISMISSING THE APPEAL WITHOUT GIVING A NOTHER OPPORTUNITY. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE ADJUDICATE THE APPEAL AFTER OBTAINING THE R EMAND REPORT. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F APPEAL HEARING. 5. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE WAS NOT GIVEN PROPER OPPORTUNITY OF HE ARING BY THE CIT (A) AND THEREFORE, PRAYED FOR A REMAND OF THE C ASE TO THE FILE OF THE CIT (A). 6. THE LEARNED DR, HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 7. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE M.D. OF THE ASSESSEE CO MPANY, THOUGH HAS GIVEN A STATEMENT U/S 131, BUT SUBSEQUENTLY RET RACTED THE SAME AND HAS FILED THE EVIDENCE TO SUBSTANTIATE HIS CLAIM. THE AO INSTEAD OF VERIFYING THE SAME HAS ONLY GONE BY THE ADMISSION OF THE M.D. OF THE ASSESSEE COMPANY AND HAS ACCORDINGL Y MADE THE ADDITION U/S 68 OF THE ACT. EVEN THE CIT (A) HAS NO T VERIFIED THE ASSESSEES CLAIM. SINCE THE EVIDENCE FILED BY THE A SSESSEE WAS TO SUBSTANTIATE OR EXPLAIN THE CASH CREDITS AND NONE O F THE ITA NO 1559 OF 2017 NEXUS FEEDS LTD HYDERABAD. PAGE 4 OF 4 AUTHORITIES HAVE VERIFIED THE SAME, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE AO FOR DE NOVO CONSIDERATION IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT THE A SSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEARING. 8. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH APRIL, 2019. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 5 TH APRIL, 2019. VINODAN/SPS COPY TO: 1 SHRI M.V. PRASAD, D.NO.60-7-13, 4 TH LINE, SIDDHARTH NAGAR, VIJAYAWADA 2 DY.CIT, CIRCLE 16(1) HYDERABAD 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER