Madhusudhan Reddy Baddam, Adilabad V. Income Tax Officer, Ward-1, Nirmal

ITA 1618/Hyd/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7340 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 20-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 01-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO SRI M MURTHY NAIK
• Section: 56(2)(vii)(b); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC , HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1618/HYD/2018 ASSESSMENT YEAR: 2014 - 15 SRI MADHUSUDAN REDDY BADDAM, ADILABAD 504 106. PAN: BYGPB 8471 D VS. INCOME TAX OFFICER, WARD - 1, NIRMAL. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY: SRI M. MURTHY NAIK, DR DATE OF HEARING: 20/01/2020 DATE OF PRONOUNCEMENT: 23 /01/2020 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 5, HYDERABAD IN APPEAL NO.0531/2016 - 17/CIT(A) - 5, DATED 16/02/2018 PASSED U/S. 143(3) R.W.S 147 OF THE ACT FOR THE ASSESSMENT YEAR 2014 - 15. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN HIS APP EAL: 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN DECIDING THE APPEAL WITHOUT PROVIDING PROPER OPPORTUNITY TO THE APPELLANT. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 22,22,500/ - MADE BY THE A.O. U/S. 56(2)(VII)(B) OF THE ACT. 2 4. THE LD. CIT(A) OUGHT TO HAVE SEEN THAT THE REAL VALUE OF THE PROPERTY IS RS. 6 LAKHS ONLY AND THE VALUE FIXED BY THE SUB - REGISTRAR IS NOT THE REAL MARKET VALUE. 5. THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THE CIRCUMSTANCES AND HELD THAT THE PROVISIONS OF SECTION 56(2)(VII)(B) OF THE ACT ARE NOT APPLICABLE. 6. THE LD. CIT(A) OUGHT TO HAVE SEEN THT THE RATE ADOPTED BY THE SUB - REGISTRAR IS NOT CORRECT COMPARED TO THE CERTIFICATE ISSUED BY THE SUB - RE GISTRAR WHICH CLEARLY INDICATES THAT THE LAND COST IS RS. 1,50,000/ - PER ACRE WHICH WOULD AMOUNT TO RS. 2,70,000/ - AND THAT THERE IS NO VALUE FOR THE STRUCTURE. 7. THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THE MATERIAL AVAILABLE ON RECORD AND HELD THAT NO IN COME U/S. 56(2)(VII)(B) OF THE ACT IS ASSESSABLE IN THE ASSESSMENT OF THE APPELLANT. 8. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 3. AT THE OUTSET, LD. AR SUBMITTED THAT THERE IS A DELAY OF 18 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL. IN THIS REGARD, THE ASSESSEE HA S SUBMITTED AN AFFIDAVIT STATING THE REASONS FOR THE DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL . FOR REFERENCE, THE RELEVANT PORTION FROM THE AFFIDAVIT IS EXTRACTED HEREIN BELOW: THE PERIOD OF 6 0 DAYS FOR FILING APPEAL BEFORE THE HONBLE ITAT ENDED ON 14/07/2018. DURING THE RELEVANT PERIOD I.E., FROM 10/07/2018 TO 31/07/2018, THE PETITIONER FELL SICK AND WAS UNDER MEDICAL TREATMENT FOR LOW BACK PAIN. HE WAS NOT IN A POSITION TO MOVE OUT. A COP Y OF THE MEDICAL CERTIFICATE IS ANNEXED TO THIS PETITION. THE PETITIONER, THEREAFTER, CONSULTED THE ADVOCATE ON 01/08/2018, GOT THE APPEAL PREPARED AND FILED ON THE SAME DAY. IN THE PROCESS THERE IS A DELAY OF 18 DAYS. THE PETITIONER HUMBLY SUBMITS THAT THE DELAY IS FOR THE REASONS SUBMITTED ABOVE WHICH ARE BEYOND HIS CONTROL AND IS NOT INTENTIONAL. THE PETITIONER, THEREFORE, PRAYS THE HONBLE ITAT TO KINDLY CONDONE THE DELAY. 3 3.1 ON PERUSAL OF THE AFFIDAVIT FILED BY THE ASSESSEE EXPLAINING THE HEALTH CONDITION OF THE ASSESSEE AS THE REASON FOR THE DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL, IN THE INTEREST OF JUSTICE, I HEREBY CONDONE THE DELAY OF 18 DAYS AND PROCEED TO HEAR TH E APPEAL ON MERITS. 4 . AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE LD. CIT (A) HAD PASSED EX - PARTE ORDER WITHOUT PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE F ILE OF THE LD CIT (A) IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PURSUE THE APPEAL . LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE H OWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A). IT WAS FURTHER SUBMITTED THAT THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS EX - PARTE ORDER ON MERITS BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT CALL FOR ANY INTERFERENCE AND APPEAL OF THE ASSESSEE MAY BE DISMISSED. 5 . I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FA CTS OF THE CASE, I FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. THE LD. CIT (A) HAD POSTED THE CASE ON SEVERAL OCCASIONS. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE THE CIT(A) ON THE DATES OF HEARING. THEREFORE, THE LD. CIT (A) WAS 4 LEFT WIT H NO OTHER OPTION EXCEPT TO PASS THE ORDER EX - PARTE. IN THIS SITUATION, I DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR, IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE F ILE OF LD. CIT (A) IN ORDER TO CONSIDER THE APPEAL AFRESH BY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH, I ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN THE PROCEEDINGS FAILING WHIC H THE LD. CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDINGLY. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICA TED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 23 RD JANUARY, 2020. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 23 RD JANUARY, 2020. OKK COPY TO: - 1) SRI MADHUSUDAN REDDY BADDAM, FLAT NO.206, BLOCK - A, VAISHNAVI TOWERS, DIVYA NAGAR, NIRMAL, ADILABAD - 504106. 2) INCOME TAX OFFICER, WARD - 1, LALITHAMBA COMPLEX, OLD BUS STAND ROAD, NIRMAL. 3) THE CIT(A) - 5, HYDERABAD 4) THE PR. CIT - 5, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE