ACIT, Central Circle-6, Hyderabad V. M/s. B. Seenaiah & Co., (projects) Ltd, Hyderabad

ITA 1680/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59229 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2012
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 26-09-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MYTHILI RANI
• Assessee Lawyers: D V ANJANEYULU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBE R. ITA NO.1680/HYD/2011 & CROSS OBJECTION NO.81/HYD/2011 THEREIN (ASSESSMENT YEAR 2006- 07) ASSTT. COMMISSIONER OF INCOME- TAX, CENTRAL CIRCLE-6, HYDERABAD V/S M/S. B.SEENAIAH & CO. (PROJECTS) LTD., HYDERABAD (PAN - AAACB 8316 K ) (APPELLANT) (RESPONDENT/CROSS - OBJECTOR) ASSESSEE BY : SMT. MYTHILI RANI RESPONDENT BY : SHRI D.V.ANJANEYULU DATE OF HEARING 24 1.2012 DATE OF PRONOUNCEMENT 24.1.2012 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL BY THE DEPARTMENT AND THE CROSS-OBJEC TION THEREIN BY THE ASSESSEE ARE DIRECTED AGAINST THE OR DER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-I, HYDERABAD DA TED 18.7.2011 FOR THE ASSESSMENT YEAR 2006-07. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL OF THE REVENUE AND CROSS-OBJECTION OF THE ASSESSEE IS WITH REGARD TO D ISALLOWANCE OF PRIOR PERIOD EXPENSES. 3. AT THE OUTSET, IT HAS BEEN BROUGHT TO OUR NOTIC E BY THE PARTIES THAT IN THE CONTEXT OF THE APPEAL OF THE ASSESSEE F OR THE ASSESSMENT YEAR 2006-07, AGAINST THE VERY SAME ORDER OF THE CIT(A) IMPUGNED HEREIN, THIS TRIBUNAL VIDE ITS ORDER DATED 28TH SEPTEMBER, 2011 IN ITA NO.1509/HYD/2011, HAS SET ASIDE THE ORDER OF THE CI T(A) AND RESTORED ITA NO.1680/HYD/11& CO 81/HYD/2011 M/S. B.SEENAIAH & CO. (PROJECTS) LTD., HYDERABAD 2 THE MATTER TO THE FILE OF THE CIT(A) FOR FRESH DISP OSAL OF THE MATTER, WITH THE FOLLOWING OBSERVATIONS- 8WE FIND THAT THE CIT(A) HAS CATEGORICALLY HELD THAT IF THE LIABILITY IS SETTLED OR CRYSTALISED DURING THE YEAR THEN THE EXPENSE IS TO BE ALLOWED IRRESPECTIVE OF THE FACT THAT THE SAME PERTAINS TO AN EARLIER YEAR. HOWEVER, WE FIND MERIT IN THE ARG UM ENTS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE THAT THE FACTUA L POSITION OF ACTUAL AMOUNT OF LIABILITY SETTLED OR CRYSTALISED I S NOT EXAMINED AT THE ASSESSING OFFICERS LEVEL. UNDER THE CIRCUMSTA NCES, IN THE INTERESTS OF JUSTICE, WE FEEL IT APPROPRIATE TO RES TORE THE ISSUE TO THE FILE OF CIT(A) TO DECIDE THIS ISSUE AFRESH AT H IS LEVEL AFTER OBTAINING REMAND REPORT FROM THE ASSESSING OFFICER TO FIND OUT THE ACTUAL AMOUNT OF LIABILITY SETTLED OR CRYSTALISED D URING THE YEAR UNDER CONSIDERATION. IN THIS VIEW OF THE MATTER, WE DEEM IT FIT AND PROP ER TO SET ASIDE THE ISSUE INVOLVED IN THE PRESENT MATTERS AS WELL TO THE FILE OF THE CIT(A), WITH A DIRECTION TO EXAMINE THE SAME, WHILE PASSING ORDER IN ACCORDANCE WITH LAW IN PURSUANCE OF THE ABOVE DIRECTIONS OF THE TRI BUNAL IN ITS ORDER DATE 28TH SEPTEMBER, 2011. HE SHALL OF COURSE GIVE REA SONABLE OPPORTUNITY OF HEARING TO THE PARTIES, BEFORE PASSING ANY ORDER IN THIS BEHALF. 3. IN THE RESULT, APPEAL OF THE REVENUE AS WELL A S THE CROSS- OBJECTION OF THE ASSESSEE ARE ALLOWED FOR STATISTIC AL PURPOSES. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION O F HEARING OF THE APPEAL ON 24 TH JANUARY, 2012 SD/- SD/- (ASHA VIJAYARAGHAVAN) (CHANDRA POOJARI) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 24 TH JANUARY, 2012 COPY FORWARDED TO: 1. M/S. B.SEENAIAH & CO. (PROJECTS) LTD., C/O. M/S. AN JANEYULU & CO., 30, BHAGYALAKSHMI NAGAR, GANDHI NAGAR, HYDERAB AD 2. ADDL COMMISSIONER OF INCOME - TAX RANGE - 3, HYDERABAD ITA NO.1680/HYD/11& CO 81/HYD/2011 M/S. B.SEENAIAH & CO. (PROJECTS) LTD., HYDERABAD 3 3. COMMISSIONER OF INCOME - TAX(A) - I HYDERABAD I 4. COMMISSIONER OF INCOME - TAX I, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S.