Venkateshwara Fuel Services (India) Limited, Hyderabad V. Income Tax Officer, Ward-17(3), Hyderabad

ITA 1816/Hyd/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7268 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 06-11-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 07-11-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 40A(3); 143(3); 234B; 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1816/HYD/2017 ASSESSMENT YEAR: 2013 - 14 VENKATESWARA FUEL SERVICES (INDIA) LIMITED, 7 TH FLOOR, MINERVA COMPLEX - 94, 1 - 2 - 137/701, S.D. ROAD, SECUNDERABAD - 003. PAN: AADCV 5949 F VS. ITO, WARD - 17(3), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY: SMT. MATTA PADMA DATE OF HEARING: 06/11/2019 DATE OF PRONOUNCEMENT: 31 /01/2020 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT (A) - 5, HYDERABAD IN APPEAL NO. 0017/2016 - 17/CIT (A) - 5 DATED 31/08/2017 PASED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE AY 2013 - 14. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN I TS APPEAL: - 1. THE ORDER OF THE LD CIT (A) IS ERRONEOUS TO THE EXTENT IT IS PREJUDICIAL TO THE APPELLANT. 2. THE LD CIT (A) ERRED IN FINALISING THE APPEAL WITHOUT PROVIDING FURTHER OPPORTUNITY TO THE APPELLANT. 3. THE LD CIT (A) ERRED IN CONFIRMING THE ACTION OF THE AO IN HOLDING THAT THE PROVISIONS OF SECTION 40A(3) 2 ARE APPLICABLE TO THE PAYMENT OF RS. 53,78,816/ - AND FURTHER ERRED IN DISALLOWING THE SAID AMOUNT. 4. THE LD CIT (A) ERRED IN CONFIRMING THE ACTION OF THE AO IN DISALLOWING THE EXPENDITURE OF RS. 85,000/ - BY APPLYING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 5. THE LD CIT(A) OUGHT TO HAVE ALLOWED THE ENTIRE AMOUNT OF RS. 5 LAKHS OUT OF THE EXPENDITURE DEBITED TO THE PROFIT AND LOSS ACCOUNT INSTEAD OF RESTRICTING THE DISALLOWANCE TO 10% OF THE EXPENSES IE., 2,02,250/ - . 6. THE LD CIT (A) OUGHT TO HAVE ADJUDICATED THE GROUND WITH REGARD TO CHARGING OF IN TEREST U/S. 234B OF RS. 5,99,688/ - . 7. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 3. THOUGHT THE LD. AR ARGUED BEFORE US ON MERITS, AT THE OUTSET, WE FIND THAT NEITHER THE ASSESSEE NOR ITS AR APPEARED BEFORE THE LD. CIT (A) AND THEREFORE, THE LD. CIT (A) HAD DISMISSED THE APPEAL OF THE ASSESSEE EX - PARTE ON MERITS. CONSIDERING THE SUBMISSION MADE BEFORE US BY THE LD. AR, WE ARE OF THE CONSIDERED VIEW THAT THE LD. CIT (A) SHOULD ALSO BE GIVEN PROPER OPPORTUNITY TO APPRECIATE THE FACTS ADVANCED BEFORE US BY THE LD. AR. THEREFORE, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT (A) FOR DE NOVO CONSIDERATION THEREBY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD BEFORE THE LD. CI T (A). 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2020. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 31 ST JANUARY, 2020. 3 OKK COPY TO: - 1) VENKATESHWARA FUEL SERVICES (INDIA) LIMITED, 7 TH FLOOR, MINERVA COMPLEX - 94, MUNICIPAL NO. 1 - 2 - 137 TO 154 /701, S.D. ROAD, SECUNDERABAD - 03. 2) ITO, WARD - 17(3), HYDERABAD. 3) THE CIT(A) - 5, HYDERABAD 4) THE PR. CIT - 5, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE