Premier Ethnols Private Limited , Hyderabad V. Income Tax Officer, Ward-16(2), Hyderabad

ITA 1651/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0451 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-03-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 13-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP MEHTA
• Keywords: Business income; Depreciation; Corroborative evidences; Tax effect; TDS; Set aside
• Section: 143(3); 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC - B BENCH : HYDERABAD (THROUGH VIDEO CONFERENC E ) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 165 1 /HYD./201 9 ASSESSMENT YEAR: 20 1 6 - 17 PREMIER ETHANOLS PVT LTD. VS. ITO , WARD 16( 2 ) HYDERABAD NIZAMABAD PAN: AA DCP0652P (APPELLANT) (RESPONDENT) FOR ASSESSEE : SH. M.V. ANIL KUMAR, AR . FOR REVENUE : SH. SANDEEP MEHTA, D.R. DATE OF HEARING : 0 4 / 03 /202 1 DATE OF PRONOUNCEMENT : 09 / 03 /202 1 O R D E R THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF CIT(A) - 4 , HYDERABAD DATED 09. 09. 2019 RELATING TO A.Y. 201 6 - 17 . THIS APPEAL WAS TAKEN UP FOR HEARING THROUGH VIDEO CONFERENCE ON 0 4 .03.2021 AND BOTH THE PARTIES WERE HEARD. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY FILED ITS E - RETURN OF INCOME FOR THE A.Y 2016 - 17 ON 18.12.2016 DECLARING INCOME OF RS.17,43,950/ - . THE CASE WAS SELECTED FOR COMPLETE SCRUTINY THROUGH CASS DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHOR T THE ACT) THE ASSESSEE WAS REQUIRED TO FILE THE INFORMATION. ON PERUSAL OF INFORMATION FURNISHED BY ASSESSEE , AO OBSERVED THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS AND VOUCHERS IN SUPPORT OF EXPENDITURE CLAIMED. THEREFORE, HE WAS OF TH E OPINION THAT THE INCOME OF THE ASSESSEE COULD NOT BE DETERMINED AND HENCE HE ESTIMATED THE INCOME AT 8% ITA NO. 1651 /HYD./201 9 PREMIER ETHANOLS PVT LTD. A.Y. 20 1 6 - 17 2 OF THE GROSS RECEIPTS NET OF DEPRECIATION WHICH WORKED OUT TO RS. 26,16,620/ - HE TREATED THE SAME AS BUSINESS INCOME OF ASSESSEE AND BROUGHT IT TO T AX. CONSEQUENTLY HE OBSERVED THAT THE RECEIPTS OF THE ASSESSEE AS PER FORM 26 AS ARE RS.6,24,22,343/ - AS AGAINST THE RECEIPTS ADMITTED IN THE RETURN OF INCOME AT RS.3,27,07,750/ - . DURING THE COURSE OF SCRUTINY , ASSESSEE SUBMITTED EXPLANATION FOR THE SAME ALONG WITH SUPPORTING EVIDENCE. THE AO HOWEVER, HELD THAT THE ASSESSEE HAS CLAIMED TDS OF RS.14,94,220/ - BEING THE AMOUNT OF TAX DEDUCTED ON THE AMOUNT OF RS.6,24,22,343/ - , AND, THEREFORE, IT IS NOT ALLOWABLE AS PER PROVISIONS OF SEC.191 OF THE ACT. HE CALCULATED TDS PERTAINING TO TURNOVER OF RS. 3,27,07,750/ - AT RS.7,82,420/ - AND ALLOWED THE SAME. 2.1. AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A) STATING THAT AN OPPORTUNITY SHOULD BE GIVEN TO H IM TO FURNISH DETAILS IN RESPECT OF TDS DEDUCTED ON MATERIAL , BILLS RAISED BY PRINCIPAL COMPANY ON THE BUYER OF THE MATERIAL , AND ALSO ON THE ESTIMATION OF TAX @ 8% OF THE TURNOVER OF THE COMPANY MADE BY AO AND AGAINST THE DISALLOWANCE OF TDS CLAIMED B Y ASSESSEE. HOWEVER, SINCE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) HE CONFIRMED THE ORDER OF AO. AGGRIEVED ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL. 1. THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE CA SE IN NOT GIVING AN OPPORTUNITY OF HEARING. [TAX EFFECT: RS.4,60,794/ - ] 2. THE CIT(A) ERRED IN LAW AND FACTS OF THE CASE THAT YOUR APPELLANT HAD SUBMITTED SUBSTANTIAL INFORMATION IN FORM OF LEDGER EXTRACTS, EXPLANATIONS AND BANK STATEMENTS TO THE ASSESS ING OFFICER, OUGHT TO HAVE ACCEPTED THE RETURNED INCOME. THE ADDITION MAY BE DELETED. [TAX EFFECT: RS.4,60,794/ - ] 3. THE CIT(A) GAVE FINDING AT PARA 4 THAT YOUR APPELLANT HAD SUBMITTED EXPLANATION ALONG WITH SUPPORTING EVIDENCE, IGNORED THE FACT, OUGHT N OT HAVE CONFIRMED THE ESTIMATION OF INCOME AT 8%, THE ADDITION MAY BE DELETED. [TAX EFFECT: RS.4,60,794/ - ] 4. THE CIT(A) AS WELL AS THE ASSESSING OFFICER OUGHT TO HAVE GIVEN CREDIT FOR THE ENTIRE TDS, HAVING SUBMITTED THAT YOUR APPELLANT IS ONLY A TRANSPORTE R AND ITA NO. 1651 /HYD./201 9 PREMIER ETHANOLS PVT LTD. A.Y. 20 1 6 - 17 3 MATERIAL DOES NOT BELONG TO HIM, THE TDS ON MATERIAL IS ONLY REIMBURSEMENT. HENCE, ELIGIBLE FOR CREDIT. 5. FOR THESE AND SUCH OTHER GROUNDS THAT MAY GENERAL BE URGED AT THE TIME OF HEARING YOUR APPELLANT PRAYS THAT THE HON'BLE MEMBERS MAY DIRECT DELETE THE ADDITION AND GIVE CREDIT FOR THE TDS. [ TOTAL TAX EFFECT RS.4,60,784/ - ] 3. LD.COUNSEL FOR THE ASSESSE E REQUESTED THAT ASSESSEE MAY BE AFFORDED ONE MORE OPPORTUNITY OF PRESENTING HIS CASE BEFORE THE AO. 3.1. LD.DR HAD NO SERIOUS OBJECTION TO THE SAME. 3.2. IN VIEW OF THE SAME, I DEEM IT FIT AND PROPER TO SET ASIDE THE ASSESSMENT ORDER AND REMIT BACK TO THE FILE OF AO FOR RE - CONSIDERATION OF THE ISSUE IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A FAIR OPPORTUNITY OF HEARING. 4. IN THE RESULT, THE APP EAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 09 / 03 / 202 1 . SD/ - (P. MADHAVI DEVI) JUDICIAL MEMBER DATED: 09 TH MARCH, 2021 GMV COPY OF ORDER FORWARDED TO: 1. PREMIER ETHNOLS P LTD., 405, ARCHANA APARTMENTS, GOLCONDA X ROADS, ADJ. TO HEBRON CHURCH, HYDERABAD. 2. ITO , WARD 16 (2), HYDERABAD . 3. ACIT, RANGE 16, HYDERABAD. 5 . CIT(A) - 4, HYDERABAD. 6. PR.CIT - 4 , HYDERABAD 7 D.R. ITAT HYDERABAD 8 . GUARD FILE