Mr.. Sunil Kumar D Shah, Hyderabad V. Dy.CIT, Hyderabad

ITA 1710/HYD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2955 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 23-11-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PHANI RAJU
• Keywords: Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B'(SMC), HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER. ITA NO.1709/HYD/12 & 1 710/HYD/2012 (ASSESSMENT YEAR -2 007-08 & 2008-09) SHRI SUNIL KUMAR D.SHAH(HUF), HYDERABAD ( PAN - AANHS 6941 R ) V/S. ASST. COMMISSIONER OF INCOME-TAX CIRCLE 1(4), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.SRINIVAS RESPONDENT BY : SHRI PHANI RAJU, DR DATE OF HEARING 2 3 .05. 2013 DATE OF PRONOUNCEMENT 23.05.2013 O R D E R BOTH THESE APPEALS ARE DIRECTED AGAINST THE COMMO N ORDER OF THE CIT(A) I, HYDERABAD, INTER-ALIA FOR THE ASSESS MENT YEARS 2007-08 AND 2008-09. 2. THE CIT(A) HAS DISMISSED THE APPEALS OF THE AS SESSEE ON THE GROUND THAT THE ASSESSEE HAS NOT PAID THE TAXES ON THE RETURNED INCOMES AND THEREFORE, THE APPEALS ARE NOT MAINTAINABLE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THERE WAS A SEARCH AND SEIZURE ACTION UNDER S.132 OF THE INCO ME-TAX ACT, IN THE CASE OF THE ASSESSEE AND CASH OF RS.5 LAKHS WAS FOUND AN D SEIZED DURING THE COURSE OF SEARCH PROCEEDINGS. HE SUBMITTED THAT TH E ASSESSEE HAD REQUESTED THE REVENUE AUTHORITIES TO ADJUST THE CAS H FOUND AGAINST THE TAXES DUE FROM HIM. HOWEVER, THAT WAS NOT DONE, AN D THE CIT(A), WHEN THE ASSESSEE PREFERRED APPEALS AGAINST THE ASSESSME NTS MADE FOR THE YEARS UNDER APPEAL, QUESTIONING THE DISALLOWANCE O F PART OF THE AGRICULTURAL INCOME AND TREATING THE SAME AS INCOME FROM OTHER SOURCES, HAS HELD THAT ASSESSEE FAILED TO PAY THE TAXES DUE ON THE RETURNED INCOME. ITA NO.1709 &1710/HYD/2 012 SHRI SUNIL KUMAR D.SHAH(HUF), HYDERABAD 2 4. THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMI TTED THAT IN ASSESSEES OWN CASE QUA THE INDIVIDUAL- SIMILAR I SSUE HAD COME UP BEFORE THE BENCH A OF THE TRIBUNAL FOR THE ASSESS MENT YEARS 2007-08 AND 2008-09, AND THE TRIBUNAL VIDE ORDER DATED 25.5 .2012, IN ITA NOS.210-211/HYD/2012, RESTORED THE APPEALS TO THE F ILE OF THE CIT(A), WITH A DIRECTION TO CONDONE THE DELAY IN THE PAYMEN T OF TAXES ON ADMITTED INCOME, WHICH THE ASSESSEE STATED WAS ONLY ON ACCOU NT OF LATE ADJUSTMENT OF THE CASH SEIZED AT TIME OF SEARCH BY THE REVENUE TOWARDS TAXES DUE FROM THE ASSESSEE, FOR THE YEARS UNDER APPEAL. HE SUBMITTED THAT THE TOTAL TAX DUE ON ACCOUNT OF ASSESSMENTS MADE UNDER S.153C IN THE HANDS OF THE ASSESSEE, IN HIS INDIVIDUAL AS WELL AS HUF S TATUS, FOR THE ASSESSMENT YEARS 2007-08 AND 2008-09 IS ONLY RS.4,99,868 AS AG AINST THE CASH SEIZED OF RS.5 LAKHS. IT IS THEREFORE, SUBMITTED T HAT THE DECISION OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE QUA INDIVIDUA L- APPLIES TO THE CASES OF THE ASSESSEE HEREIN, AND HENCE SIMILAR DIRECTION MAY GIVEN TO THE CIT(A), WHILE RESTORING THE APPEALS. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT OBJECT TO THE REMAND OF THE APPEALS TO THE CIT(A), PROVIDED THE CASH SEIZED HAS BEEN ADJUSTED TOWARDS THE TAXES DUE FOR THE RELEVANT ASS ESSMENT YEARS. 6. IN VIEW OF THE CONTENTIONS OF BOTH THE PARTIES, I SET ASIDE THE IMPUGNED ORDERS OF THE CIT(A) AND RESTORE THE APPEA LS TO HIS FILE, TO CONDONE THE DELAY IN THE PAYMENT OF TAXES ON ADMITT ED INCOMES OF THE ASSESSEE FOR THE YEARS UNDER APPEAL, IF THE CASH SE IZED DURING THE COURSE OF SEARCH HAS BEEN ADJUSTED AGAINST THE TAXES DUE, AND DISPOSE OFF THE APPEALS ON MERITS, IN ACCORDANCE WITH LAW, AFTER GI VING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, THESE TWO APPEALS OF THE ASSESSE E ARE ALLOWED FOR STATISTICAL PURPOSES. ITA NO.1709 &1710/HYD/2 012 SHRI SUNIL KUMAR D.SHAH(HUF), HYDERABAD 3 ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION O F HEARING ON 23.5.2013 SD/- ( P.MADHAV I DEVI) JUDICIAL MEMBER DT/- 23 RD MAY, 2013 COPY FORWARDED TO: 1. SHRI SUNIL KUMAR D.SHAH (HUF), 80 - 2 - 401/C/2, STREET NO.1, ROAD NO.5, BANJARA HILL, HYDERABAD-500 034 2 . 3. 4. 5. DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE 2, HYDERABAD COMMISSIONER OF INCOME-TAX(APPEALS) I, HYDERABAD COMMISSIONER OF INCOME-TAX, CENTRAL , HYDERABAD. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.