Futureage Infrastructure India Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-17(2), Hyderabad

ITA 1595/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6595 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 06-09-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 01-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S SRINIVAS
• Keywords: Opportunity of being heard
• Section: 142(1); 201; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 1595 /H/20 19 ASSESSMENT YEAR S : 2 0 1 3 - 1 4 FUTUREAGE INFRASTRUCTURE INDIA LTD., HYDERABAD. PAN AAACF 9733F VS. INCOME - TAX OFFICER , WARD 1 7 ( 2 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: NONE REVENUE BY: S HRI S. SRINIVAS DATE OF HEARING: 06 /0 9 /2021 DATE OF PRONOUNCEMENT: 08 /0 9 /2021 O R D E R PER L.P. SAHU, A.M. : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 9 , HYDERABADS ORDER DATED 2 8 / 09 / 201 9 FOR AY 20 1 3 - 1 4 INVOLVING PROCEEDINGS U/S 143( 3 ) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT , ON THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 9, HYDERABAD ['THE LEARNED CIT (A)]' ERRED IN LAW AND ON I TA NO. 1595 /HYD /20 19 FUTUREAGE INFRASTRUCTURE INDIA LTD., HYD : - 2 - : FACTS IN CONFIRMING THE ORDER OF THE LEARNED ASSESSING OFFICER (THE LEARNED AO) DATED 30 MARCH 2016. 2. THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE LEARNED AO TOWARDS THE REIMBURSEMENT OF EXPENSES OF RS. 1,77,99,929 AGAINST THE PREVIOUSLY INCURRED COST. 3. THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE LEARNED AO TOWARDS THE REIMBURSEMENT OF THE SERVICE TAX OF RS. 22,00,071, CHARGED ON THE PREVIOUSLY INCURRED COST OF RS. 1,77,99,929, AS INCOME OF THE APPELLANT. 4. THE APPELLANT CRAVES LEAVE TO ALTER, AMEND OR WITHDRAW ALL OR ANY OBJECTIONS HEREIN OR ADD ANY F URTHER GROUNDS AS MAY BE CONSIDERED NECESSARY EITHER BEFORE OR DURING THE HEARING. 2. BRIEF FACTS OF THE CASE A R E THAT THE APPELLANT HA D FILED RETURN OF INCOME FOR THE A.Y. 2013 - 14 ON 25.09.2013 ADMITTING A TOSS OF RS, 16,19,594/ - . THE SAID RETURN WAS S ELECTED FOR SCRUTINY UNDER CASS CATEGORY. SINCE THE CASE WAS UNDER SCRUTINY, A NOTICE U/S. 142(1) WAS ISSUED ON 02.09.2014 FOLLOWED BY NONCE U/S 142(1). THE A O COMPLETED THE ASSESSMENT BY ASSESSING THE INCOME AT RS. 1,83,80,410/ - AFTER DISALLOWING THE EXPE NSES OF RS. 2 CRORE , RECEIVED BY THE ASSESSEE COMPANY PURPORTEDLY TOWARDS REIMBURSEMENT OF EXPENDITURE TREATING IT AS ITS INCOME FOR THE YEAR UNDER CONSIDERATION. 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE ORDER OF THE AO OBSERVING I TA NO. 1595 /HYD /20 19 FUTUREAGE INFRASTRUCTURE INDIA LTD., HYD : - 3 - : THAT DESPITE GIVING MORE THAN ADEQUATE OPPORTUNITIES, ASSESSEE HAS NOT FILED ANY DETAIL TILL DATE AND, THEREFORE THERE IS NO REASON THAT THIS APPEAL SHOULD KEPT PENDING, IN FACT THAT KEEPING THE APPEAL PENDING HELPS THE ASSESSEE AS ONLY 15 TO 20% OF THE DEMAND HAS TO BE PAID AND THE REMAINING CAN BE KEPT IN ABEYANCE AND, THEREFORE, IN THE ABSENCE OF ANY DETAILS SUBMITTED, THE ORDER OF AO IS CONFIRMED. 4. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 5. AT THE TIME OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE NOR FILED ANY ADJOURNMENT REQUEST. THEREFORE, WE PROCEED TO DECIDE THE APPEAL AFTER HEARING THE LD. DR AND THE MATERIAL AVAILABLE ON RECORD. 6. AFTER HEARING THE LD. DR AND PERUSING THE M ATERIAL ON RECORD AS WELL AS THE ORDERS OF REVENUE AUTHORITIES , WE FIND THAT THE LEARNED CIT(A) HAD DECIDED THE MATTERS EX - PARTE AND CONFIRMED THE ORDER OF THE AO IN THE ABSENCE OF DETAILS FILED BY THE ASSESSEE AND FAILED TO ARGUE ITS CASE BEFORE HIM. THEREFORE, WE ARE OF THE VIEW THAT INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS RESTORED TO THE FILE OF FIRST APPELLATE AUT HORITY FOR DECIDING VARIOUS GROUNDS OF APPEAL OF THE ASSESSEE ON MERITS. ACCORDINGLY, THE CIT(A) IS DIRECTED TO AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE I TA NO. 1595 /HYD /20 19 FUTUREAGE INFRASTRUCTURE INDIA LTD., HYD : - 4 - : ASSESSEE AND THEREAFTER DECIDE THE APPEAL S ON MERITS. WE DIRECT THE ASSESSEE TO APPEAR BEFO RE CIT(A) ON OR BEFORE 30 TH NOVEMBER, 2021 WITH ALL THE RELEVANT EVIDENCES; AT HIS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PUR POSES. PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 8 TH SEPTEMBER , 20 2 1 . K V C OPY TO : 1 FUTURE AGE INFRASTRUCTURE INDIA LTD., THE IL & FS FINANCIAL CENTRE, PLOT C - 22, G - BLOCK, 8 TH FLOOR, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI 2 ITO, WARD 1 7 ( 2 ), SIGNATURE TOWERS, GACHIBOWLI MIYAPUR ROAD, KONDAPUR, HYDERABAD 500 084 3 C I T(A) 9 , HYDERABAD. 4 PR. CIT 5 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. I TA NO. 1595 /HYD /20 19 FUTUREAGE INFRASTRUCTURE INDIA LTD., HYD : - 5 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER