Kompella Ganapathi , Hyderabad V. Income Tax Officer, Ward-15(1), Hyderabad

ITA 1738/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7009 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 10-03-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 27-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV BHAPAT
• Assessee Lawyers: A KIRAN MANOHAR
• Section: 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 1737 & 1738/HYD/2019 A.Y. 2014 - 15 KOMPELLA GANAPATHI, HYDERABAD. PAN: AJHPG 3517 G VS. INCOME TAX OFFICER, WARD - 15(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI A. KIRAN MANOHAR REVENUE BY: SHRI SANJEEV BHAPAT, DR DATE OF HEARING: 10/03/2021 DATE OF PRONOUNCEMENT: 09 /04/2021 ORDER TH E CAPTIONED TWO APPEALS ARE FILED BY THE ASSESSEE FOR THE A.Y. 2014 - 15. ITA NO. 1737/HYD/2019 IS QUANTUM APPEAL AND ITA NO.1738/HYD/2019 PERTAINS TO PENALTY APPEAL. BOTH THESE APPEALS ARE FILED AGAINST THE ORDERS OF THE LD. CIT(A) - 7, HYDERABAD IN APPEAL NO S. 0160 & 0162/CIT(A) - 7/2017 - 18 , DATED 23/08/2019 PASSED U/S. 144 & 271A R.W.S 250(6) OF THE ACT. 2. IN ITA NO. 1737/HYD/2019, THE ASSESSEE HAS RAISED SIX GROUNDS IN HIS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - 2 1. THE ORDER OF THE LD. CIT( A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A.O. IN COMPLETING THE ASSESSMENT EX - PA RTE U/S. 144 OF THE ACT. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 24,81,257/ - OUT OF RS. 28,65,057/ - MADE BY THE A.O. 4. THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE DEPOSITS MADE INTO THE BANK ACCOUNT RELATE TO THE CLIENTS ON WHOSE BEHALF THE APPELLANT UNDERTOOK THE WORK AND HE IS ENTITLED ONLY FOR COMMISSION AND THEREFORE, THE D ETERMINATION OF INCOME AT RS. 24,81,257/ - IS NOT JUSTIFIED. 5. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF COMMISSION INCOME OF RS. 98,960/ - MADE BY THE ASSESSING OFFICER. 6. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 3. IN ITA NO. 17 38/HYD/2019, THE ASSESSEE HAS RAISED THREE GROUNDS IN HIS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN CONFIRMING PENALTY U/S. 271A OF RS. 25,00 0/ - LEVIED BY THE ASSESSING OFFICER. 3. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. ITA NO. 1737/HYD/2019 : - 4 . AT THE OUTSET, THE LD. AR SUBMITTED BEFORE ME THAT THE LD. AO HAD PASSED EX - PARTE ORDER U/S. 144 OF THE ACT WITHOUT PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD AND MADE CERTAIN ADDITIONS AGGREGATING TO RS. 29,66,437 / - AND DETERMINED THE SAM E AS THE TOTAL INCOME OF THE ASSESSEE AGAINST THE RETURNED INCOME OF RS.1,02,200/ - . IT WAS FURTHER SUBMITTED THAT ON APPEAL, THE LD. CIT (A) ALSO DID NOT PROPERLY APPRECIATE THE SUBMISSIONS OF THE ASSESSEE . IT WAS THEREFORE 3 PLEADED THAT THE ASSESSEE MAY BE PROVIDED WITH ONE MORE OPPORTUNITY TO PURSUE HIS CASE BEFORE THE LD. REVENUE AUTHORITIES. LD. DR ON THE OTHER HAND OBJECTED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE, HOWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. AO AND EVEN BEFORE THE LD. CIT (A) THE ASSESSEE COULD NOT SUBSTANTIATE HIS CLAIM WITH EVIDENCE. UNDER THESE CIRCUMSTANCES, THE LD. REVENUE AUTHORITIES HAD NO OTHER OPTIO N BUT TO PASS ORDERS ON MERITS BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, IT WAS PLEADED THAT THE ORDERS PASSED BY THE LD. REVENUE AUTHORITIES DO NOT CALL FOR ANY INTERFERENCE AND APPEAL OF THE ASSESSEE MAY BE DISMISSED. 5 . I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FACTS OF THE CASE, I FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. THE LD. AO HAD POSTED THE CASE ON SEVERAL OCCASIONS. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE T HE LD. AO ON THE GIVEN DATES OF HEARING AND EVEN BEFORE THE LD. CIT(A) THE ASSESSEE COULD NOT IMPROVE HIS CASE. HENCE, THE LD. REVENUE AUTHORITIES WERE LEFT WITH NO OTHER OPTION EXCEPT TO PASS ORDERS BASED ON THE MATERIAL AVAILABLE ON RECORD. IN THIS SITU ATION, I DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER AND THE SUBMISSIONS OF THE LD. AR AND THE NATURE OF ISSUES 4 INVOLVED IN THE APPEAL, IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. AO FOR DE - NOVO CONSIDERATION THEREBY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH, I ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. REVENUE AUTHORITIES IN THEIR PROCEEDINGS FAILING W HICH THE LD. REVENUE AUTHORITIES SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDERS IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDINGLY. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTIC AL PURPOSES AS INDICATED HEREINABOVE. ITA NO. 1738/HYD/2019 7 . THE CORE ISSUE INVOLVED IN THIS APPEAL IS THE LEVY OF PENALTY U/S. 271A OF THE ACT. SINCE THE QUANTUM APPEAL OF THE ASSESSEE IS REMITTED BACK TO THE FILE OF THE LD. A.O. FOR DE - NOVO CONSIDERATION, THIS APPEAL IS ALSO REMITTED BACK TO THE FILE OF THE LD. A .O. TO ADJUDICATE THE APPEAL AFRESH BASED ON THE OUTCOME OF THE QUANTUM APPEAL OF THE ASSESSEE. IT IS ORDERED ACCORDINGLY. 8 . IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSED AS INDICATED HEREIN ABOVE. 5 PRONOUNCED IN THE OPEN COURT ON THE 09 TH APRIL, 2021. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 09 TH APRIL, 2021. OKK COPY TO: - 1) K.V.V. GANAPATHI, NO. 27, SADAN VIHAR COLONY, KAPRA, HYDERABAD. 2) INCOME TAX OFFICER, WARD - 15(1), INCOME TAX TOWERS, AC GUARDS, MASAB TANK, HYDERABAD. 3) THE CIT(A) - 7, HYDERABAD. 4) THE PR. CIT - 7, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE