M/s Madhava Hytech Engineers (P) Limited, Hyderabad V. Dy.CIT., Circle-16(2), Hyderabad

ITA 1634/HYD/2014

• Counselvise Citation: 163422514 RSA 2014
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-12-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 22-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Assessee Lawyers: P MURALI
• Section: 147; 148; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 1634/HYD/2014 ASSESSMENT YEAR: 2008-09 M/S MADHAVA HYTECH ENGINEERS (P) LTD., HYDERABAD. PAN AABCM3921A DY. COMMISSIONER OF INCOME TAX OFFICER, CIRCLE 16(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI P. MURALI REVENUE BY SHRI D. SUDHAKAR RAO DATE OF HEARING 17-12-2014 DATE OF PRONOUNCEMENT 19-12-2014 O R D E R PER SAKTIJIT DEY, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST OR DER DATED 30/06/2014 OF LD. CIT(A)-V, HYDERABAD FOR THE ASSES SMENT YEAR 2008- 09 IN DISPOSING OF ASSESSEES APPEAL EX-PARTE. 2. BRIEFLY THE FACTS ARE, ASSESSEE A COMPANY IS ENG AGED IN THE BUSINESS OF INFRASTRUCTURE DEVELOPMENT. FOR AY UNDE R CONSIDERATION, ASSESSEE FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 1,83,54,694. INITIALLY, THE RETURN OF INCOME WAS PR OCESSED U/S 143(1) OF THE ACT. HOWEVER, SUBSEQUENTLY, ON THE BASIS OF INFORMATION AVAILABLE, AO REOPENED THE ASSESSMENT U/S 147 BY IS SUING A NOTICE U/S 148 OF THE ACT ON 10/05/2011. DURING THE ASSESS MENT PROCEEDING, AO ON VERIFYING THE RETURN OF INCOME NOTICED THAT A SSESSEE HAS OFFERED THE AMOUNT OF RS. 36,09,65,844 AS SUB-CONTR ACT RECEIPTS DURING THE FY 2007-08 AND RS. 21,11,500 AS INTEREST RECEIPTS. 2 ITA NO. 1634/HYD/2014 M/S MADHAVA HYTECH ENGINEERS (P) LTD. HOWEVER, ON PERUSAL OF TDS CERTIFICATES PERTAINING TO FY 2007-08, IT WAS NOTICED THAT TOTAL SUB-CONTRACT RECEIPTS WAS TO THE TUNE OF RS. 46,96,09,390. THE AO, THEREFORE, CALLED UPON ASSESS EE TO EXPLAIN THE DIFFERENCE OF RS. 10,86,43,546 BETWEEN THE SUB-CONT RACT RECEIPTS DISCLOSED BY ASSESSEE AND AS PER TDS CERTIFICATES. THOUGH, ASSESSEE TRIED TO RECONCILE THE DIFFERENCE BY SUBMITTING EXP LANATION IN THAT REGARD, BUT, AO REJECTING THE SAME, ADDED THE DIFFE RENTIAL AMOUNT OF RS. 10,86,43,546 TO THE INCOME OF ASSESSEE AND TOTA L INCOME WAS DETERMINED AT RS. 12,69,98,240. BEING AGGRIEVED OF THE ASSESSMENT ORDER, SO PASSED, ASSESSEE PREFERRED APPEAL BEFORE LD. CIT(A). 3. ON 26/06/2014, WHEN THE APPEAL WAS LAST POSTED F OR HEARING BEFORE LD. CIT(A), ASSESSEE SUBMITTED A LETTER BEFO RE LD. CIT(A) REQUESTING FOR ADJOURNMENT OF THE HEARING ON THE GR OUND THAT ASSESSEE HAS FILED A PETITION U/S 154 OF THE ACT FU RNISHING THE COPIES OF RUNNING ACCOUNT BILLS AND OTHER DOCUMENTS FOR RE CONCILING THE DIFFERENCE BETWEEN THE SUB-CONTRACT RECEIPTS SHOWN BY ASSESSEE AND AS PER THE TDS CERTIFICATES. LD. CIT(A), HOWEVER, R EJECTED ASSESSEES REQUEST FOR ADJOURNMENT AND CONFIRMED THE ADDITION MADE BY AO WITH THE FOLLOWING OBSERVATIONS: 4.3 I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND THE ASSESSMENT ORDER. THE AO AFTER CO NSIDERING THE EXPLANATION OF THE APPELLANT ONLY HAS MADE THE ADDITION OF RS. 10.86 CRORES. I FULLY AGREE WITH THE OBSERVATIO NS OF THE AO AND CONFIRM THE ADDITION MADE. 4.4 REGARDING THE REQUEST OF THE APPELLANT TO ADJOU RN THE CASE TILL THE RECTIFICATION PETITION IS DISPOSE D OF BY THE AO CANNOT BE CONSIDERED SINCE THE RECTIFICATION PROCEE DINGS BEFORE THE AO AND THE APPEAL PROCEEDINGS BEFORE THE UNDERS IGNED ARE SEPARATE AND INDEPENDENT. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE ORDERS OF REVENUE AUTHORITIES AS WELL AS OTHER MATERIALS ON RECORD. L D. AR SUBMITTED BEFORE US THAT SINCE THE PETITION U/S 154 WAS PENDI NG BEFORE AO, ASSESSEE SOUGHT ADJOURNMENT BEFORE LD. CIT(A). HOWE VER, LD. CIT(A) WITHOUT ADJOURNING THE CASE OR GRANTING ANOTHER OPP ORTUNITY TO 3 ITA NO. 1634/HYD/2014 M/S MADHAVA HYTECH ENGINEERS (P) LTD. ASSESSEE TO REPRESENT THE CASE ON MERIT, HAS PASSED THE ORDER EX- PARTE CONFIRMING THE ADDITION, WHICH IS NOT JUSTIFI ED. HE, THEREFORE, REQUESTED FOR REMITTING THE MATTER TO LD. CIT(A) FO R GRANTING ASSESSEE A FRESH OPPORTUNITY TO REPRESENT ITS CASE. 5. LD. DR HAS NO SERIOUS OBJECTION, IF THE MATTER I S REMITTED BACK TO LD. CIT(A) FOR FRESH ADJUDICATION. 6. HAVING CONSIDERED THE SUBMISSIONS OF THE PARTIES AND THE NATURE OF GRIEVANCE OF ASSESSEE, WE ARE INCLINED TO SET ASIDE THE IMPUGNED ORDER OF LD. CIT(A) AND REMIT THE MATTER BACK TO HIS FILE WITH A DIRECTION TO GRANT A REASONABLE OPPORTUNITY TO ASSESSEE TO REPRESENT ITS CASE. WE ALSO DIRECT ASSESSEE TO APPE AR BEFORE LD. CIT(A) AND MAKE PROPER REPRESENTATION ON THE MERITS OF THE GROUNDS RAISED. 7. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 19/12/2014. SD/- SD/- (J. SUDHAKAR REDDY) (SAKTIJIT D EY) ACCOUNTANT MEMBER JU DICIAL MEMBER HYDERABAD, DATED: 19 TH DECEMBER, 2014 KV COPY TO:- 1) M/S MADHAVA HYTECH ENGINEERS (P) LTD., DOWN TOWN , NTR GARDEN NECKLACE ROAD, HYDERABAD 500 063 2) DCIT, CIRCLE 16(2), HYDERABAD 3) CIT(A)-V, HYDERABAD 4) CIT-IV, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 4 ITA NO. 1634/HYD/2014 M/S MADHAVA HYTECH ENGINEERS (P) LTD. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON SR.P.S. 2. DRAFT PLACED BEFORE AUTHOR SR.P.S 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER VP 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S. 6. KEPT FOR PRONOUNCEMENT ON SR.P S. 7. FILE SENT TO THE BENCH CLERK SR.P.S. 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER