Vinstel Techno Services Private Limited, Hyderabad V. DCIT, Hyderabad

ITA 168/HYD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3164 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-07-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 02-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: AJAY GANDHI
• Keywords: Unexplained cash credit; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMEBR ITA NO.168/HYD/10 : ASSTT . YEAR 2006-07 M/S. VINSTEL TECHNO SERVICES PVT. LTD., HYDERABAD. ( PAN - AABCV 6616 K ) V/S. DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(3), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY GANDHI RESPONDENT BY : SHRI K.V.N.CHARYA O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006- 07 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME- TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER- '(1) THE ORDER OF THE CIT(APPEALS) IS IN GROSS VIOL ATION OF THE PROVISIONS OF LAW AND HENCE IS BAD IN LAW. (2) THE CIT(APPEALS) HAS ERRED IN CONCLUDING THA T REASONABLE OPPORTUNITY OF REPRESENTATION WAS GRANTED BY THE ASSESSING OFFICER TO THE ASSESSEE. (3) THE CIT(APPEALS) HAS ERRED IN UPHOLDING THE A SSESSMENT U/S. 144. (4) THE CIT(A) HAS ERRED UPHOLDING THE ADDITION OF RS.29,89,243 AS UNEXPLAINED CREDITS U/S. 68. ITA NO.168/HYD/10 M/S. VINSTEL TECHNO SERVICES PVT. LTD. HYD. 2 (5) THE CIT(A) HASER4ED IN UPHOLDING THE ASSESSING OFFICER'S ACTION OF IGNORING LOSS OF RS.12,54,968 RETURNED BY THE ASSESSEE. ' 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE ASSESSING OFFICER HAS FRAMED THE ASSESSMENT EX-PARTE UNDER S .144 OF THE ACT FOR NO DEFAULT ON THE PART OF THE ASSESSEE. H E SUBMITTED THAT THERE WAS A CHANGE IN THE ADDRESS OF THE ASSESSEE, WHICH WAS DULY INTIMATED TO THE ASSESSING OFFICER AND COPY OF THE INTIM ATION OF CHANGE IN ADDRESS HAS BEEN FILED IN THE COMPILATION BEF ORE THE TRIBUNAL. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS REL IED ON THE ORDER OF THE ASSESSING OFFICER. HE SUBMITTED THAT TH E CIT(A) HAS GIVEN FULL OPPORTUNITY TO THE ASSESSEE AND REMAND REPOR T FROM THE ASSESSING OFFICER WAS ALSO CALLED. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND T HAT THERE WAS A CHANGE IN THE ADDRESS OF THE ASSESSEE AND THE A SSESSEE HAS INTIMATED THE CHANGE IN ITS ADDRESS TO THE ASSESSING O FFICER. MOREOVER, THE LAST NOTICE OF HEARING UNDER S.143(2) P OSTING THE CASE FOR HEARING ON 23.10.2008 WAS SERVED ON THE ASSESSEE ON THE DATE OF HEARING ITSELF, I.E. ON 23.10.2008. IN THESE FACTS, WE HOLD THAT THERE WAS NO JUSTIFICATION FOR COMPLETING THE ASSESSMENT EX-PART E UNDER S.144 OF THE ACT. ACCORDINGLY, THE ORDERS OF THE REVEN UE AUTHORITIES ARE SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO FRAME DE NOVO ASSESSMENT IN ACCORDANCE WITH LAW, AFTER ALLOWING REASONABLE OPPORTUNITY OF H EARING TO THE ASSESSEE. WE DIRECT ACCORDINGLY. ITA NO.168/HYD/10 M/S. VINSTEL TECHNO SERVICES PVT. LTD. HYD. 3 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF H EARING OF THE APPEAL ON 1.7.2010 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 1ST JULY, 2010 COPY FORWARDED TO: 1. M/S. VINSTEL TECHNO SERVICES PVT. LTD., C/O. M/S. GAN DHI *& GANDHI, CHARTERED ACCOUNTANTS, 1002, PAIGAH PLAZA, BASHEERBAGH HYDERABAD. 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(3), HYDERA BAD 3. COMMISSIONER OF INCOME-TAX(APPEALS)-IV, HYDERABAD. 4. COMMISSIONER OF INCOME-TAX AP-III, HYDERABAD . 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.