Sri Sai Vishwas Industries, , Hyderabad V. Income Tax Officer, Ward-5(3), Hyderabad

ITA 161/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6061 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 07-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E SREEDHAR
• Keywords: Unexplained cash credit; Condonation of delay
• Section: 143(1); 201; 22; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH : HYDERABAD (THROUGH VIDEO CONFERENC E ) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 161 /HYD./20 20 ASSESSMENT YEAR: 20 1 1 - 12 SRI SAI VISHWAS INDUSTRIES . VS. ITO, WARD 5 ( 3 ) HYDERABAD HYDERABAD [ PAN: A BCFS5633E ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : NONE . FOR REVENUE : SH RI E. SREEDHAR, D.R. DATE OF HEARING : 19 / 0 4 /202 1 DATE OF PRONOUNCEMENT : 22 / 0 4 /202 1 O R D E R THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF CIT(A) - 4, HYDERABAD DATED 30 .09.2019 RELATING TO A.Y. 201 1 - 12 . THIS APPEAL WAS TAKEN UP FOR HEARING THROUGH VIDEO CONFERENCE ON 19.04. 2021 AND BOTH THE PARTIES WERE HEARD. AT THE OUTSET , IT IS SEEN THAT THERE IS A DELAY OF 68 DAYS IN FIL ING OF THE APPEAL AND THE ASSESSEE HAS FILED AN APPLICATION FOR CONDONATION OF DELAY STATING THAT THE ASSESSEE HAS FILED APPEAL BEFORE THE CIT(A) AND HA D SOUGH T FOR AN ADJOURNMENT TO FILE DETAILS FOR THE DELAY . HOWEVER, THE CIT(A) , WITHOUT CONSIDERING TH E ADJOURNMENT APPLICATION , DISMISSED THE APPEAL MENTIONING THAT NONE APPEARED FOR ASSESSEE. IT IS SUBMITTED THAT THE DELAY IS DUE TO THE FACT THAT OLD RECORDS ARE NOT TRACEABLE READILY AS THE STAFF HAD LEFT THE ORGANISATION AS BUSINESS IS SUSPENDED AND IT TOOK TIME TO FIND OUT RELEVANT ITA NO. 161 /HYD./20 20 SRI SAI VISHWAS INDUSTRIES . A.Y. 20 1 1 - 12 2 RECORDS FROM THE OLD STOCK AND IT WAS THEREFORE REQUESTED THAT THE DELAY MAY BE CONDONED. LD.D.R. OPPOSED THE CONDONATION OF DELAY. HOWEVER, BEING SATISFIED WITH THE REASONS GIVEN IN THE APPLICATION, THE DELAY IS CONDONED. 2. AS REGARDS MERITS OF THE CASE IS CONCERNED, I FIND THAT THE ASSESSEE FIRM ORIGINALLY FILED ITS RETURN OF INCOME FOR A.Y 2011 - 12 ON 11.10.2011 DECLARING TOTAL INCOME OF RS.3,75,00 1 / - . THE RETURN WAS INITIALLY PROCESSED U/S 143(1) AND LATER ON REOPENED BY ISSUANCE OF A NOTICE U/S 14 8 OF THE INCOME TAX ACT, 1961. THE A.O. OBSERVED THAT THE ASSESSEE DID NOT APPEAR IN SPITE OF SEVERAL OPPORTUNITIES GIVEN AND SINCE THE CASE IS BECOMING TIME BARRED ON 31.12.2018, HE COMPLETED THE ASSESSMENT U/S 144 OF THE ACT ON THE BASIS OF BEST JUDGEMENT ASSESSMENT. THE AO FOUND THAT THERE ARE CASH CREDITS OF RS.31,95,500/ - . H E TREATED THE SAME AS UNEXPLAINED CASH CREDITS AND BROUGHT IT TO TAX. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), BU T NON E APPEARED BEFORE THE CIT(A) AND THEREFORE HE DISMISSED THE APPEAL AND CONFIRM ED THE ORDER OF A.O. 3. ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL. 1. THE LD. CIT(A) - 4, HYDERABAD HAS ERRED IN LAW AND FACTS OF THE CASE AND IN LAW. 2. THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.31,95,500/ - AND THIS AMOUNT IS RECEIPTS OUT OF SALES MADE BY THE APPELLANT, WHICH WERE TREATED AS UNEXPLAINED CREDITS BY THE AO. 3. THE CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF THE CARRIED FORWARD LOSS OF RS.3,28,2 40/ - MADE BY THE AO AND THE CARRIED FORWARD LOSS CLAIMED MAY BE ALLOWED. 4. TO FILE ANY OTHER GROUND NOT FILED EARLIER OR TO MODIFY THE GROUNDS ALREADY FILED WITH THE PERMISSION OF HONBLE MEMBER. ITA NO. 161 /HYD./20 20 SRI SAI VISHWAS INDUSTRIES . A.Y. 20 1 1 - 12 3 3.1. INSPITE OF SERVICE OF NOTICE BY RPAD TO ASSESSEE, NO NE APPEARED ON BEHALF OF ASSESSEE. HOWEVER, ON GOING THROUGH THE RECORDS, I FIND THAT THE ASSESSEES CASE IS EX PARTE BOTH BEFORE THE AO AS WELL AS BEFORE THE CIT(A). THEREFORE, IN THE INTEREST OF JUSTICE AND TO GIVE ASSESSEE AN OPPORTUNITY OF HEARING, I DEEM IT FIT AND PROPER TO RESTORE THE ISSUE BACK TO THE FILE OF THE A.O. FOR RE - CONSIDERATION OF THE ISSUE DENOVO IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEARING. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 22 /0 4 / 202 1 . SD/ - (P. MADHAVI DEVI) JUDICIAL MEMBER DATED: 22 ND APRIL, 2021 GMV COPY OF ORDER FORWARDED TO: 1. SRI SAI VISHWAS INDUSTRIES, NO. 5 - 8 - 49/21/A, GADWAL COMPOUND, NAMPALLY, HYDERABAD 500 001, TELANGANA . 2. ITO, WARD 5 ( 3 ), HYDERABAD . 3. ACIT, RANGE 5 , HYDERABAD. 5 . CIT(A) - 4, HYDERABAD. 6. PR.CIT - 4, HYDERABAD 7 D.R. ITAT HYDERABAD 8 . GUARD FILE