Income Tax Officer, Ward-1, Suryapet V. Bhagwati Sales Corporation, Bhongiri

ITA 1625/Hyd/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6291 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 07-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K N SURESH BABU
• Keywords: Tax effect; Set aside
• Section: 40A(3); 143(3); 263

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 1625/HYD/2019 ASSESSMENT YEAR: 2013 - 14 INCOME TAX OFFICER, WARD - 1, SURYAPET 508 213. VS. M/S. BHAGWATI SALES CORPORATION, BHONGIRI 508 116. PAN: AAFFB 4269 F (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. SANDHYA REVENUE BY: SRI K . N . SURESH BABU DR DATE OF HEARING: 23/09/2020 DATE OF PRONOUNCEMENT: 23/09/2020 ORDER THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) - 3, HYDERABAD IN APPEAL NO. 10338/CIT(A) - 3/2018 - 19, DATED 16/08/2019 PASSED U/S. 143(3) R.W.S 263 AND U/S. 250(6) OF THE ACT FOR THE ASST. YEAR 2013 - 14. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE LD. CIT(A) ERRED BOTH IN LAW AND ON FACTS OF THE CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, WHETHER THE LD. CIT(A) IS CORRECT IN HOLDING THAT THE ADDITION MADE BY THE ASSESSING OFFICER WITH REGARD TO THE ISS UES RELATING TO DISALLOWANCE OF INTEREST ON PARTNERS DRAWINGS OF RS. 3,20,750/ - , PAYMENTS OF SALES ADVANCES T ANNAPURNA SALES OF RS. 1,57,053/ - AND PAYMENT OF ADVANCE TO SRI SAI SANTHOSH CANTEEN & STATIONERY OF RS. 29,070/ - ARE BEYOND JURISDICTION IGNORING THAT VIDE 263 ORDER DT 31/3/2016 WAS SET ASIDE TO RE - DO THE ASSESSMENT IN ACCORDANCE WITH LAW. 2 3. ON THE FACTS AND CIRCUMSTANCES F THE CASE AND IN LAW, WHETHER THE LD. CIT(A) IS CORRECT IN ALLOWING APPEAL OF THE ASSESSEE IN DISALLOWANCE U/S. 40A(3) OF THE IT ACT, 1961 IGNORING TH A T THE ASSESSEE FAILED TO ESTABLISH THAT THE PAYMENTS MADE IN CASH TO A PERSON IN A DAY WERE NOT EXCEEDING RS. 20,000/ - . 3. AT THE TIME OF HEARING IT HAS BEEN BROUGHT TO MY NOTICE THAT AS PER THE CBDT CIRCULARS NO.03/2018 DATED 1 1.07.2018 AND CIRCULAR NO.17 OF 2019 DATED 9 TH AUGUST, 2019, THE TAX LIMIT FOR FILING APPEAL BY THE REVENUE BEFORE THE TRIBUNAL HAS BEEN FIXED AT RS.50.00 LAKHS AND ABOVE. THEREFORE, SINCE THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL BEFORE ME IS LESS THA N RS.50.00 LAKH, I HEREBY DISMISS THE APPEAL OF THE REVENUE WITH LIBERTY TO SEEK RECALL OF THE ORDER, IF THE APPEAL FALLS WITHIN THE EXCEPTIONS MENTIONED IN THE CIRCULARS OF THE CBDT. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER, 2020. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 23 RD SEPTEMBER, 2020. OKK COPY TO: - 1) M/S. BHAGWATI SALES CORPORATION, D.NO.1 - 7 - 77, R.E. NAGAR, BHONGIRI 508 116. 2) THE INCOME TAX OFFICER, WARD - 1, KRISHNANAGAR COLONY, OPP. HI TECH BUS STAND, SURYAPET 508 213. 3) THE CIT(A) - 3 , HYDERABAD 4) THE PR. CIT - 3 , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE