CSK Realtors Limited, Hyderabad V. Deputy Commissioner of Income Tax, Circ le-1(2), Hyderabad

ITA 1821/Hyd/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2328 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 21-10-2021
• Assessment Year: 2008-2009
• Appeal Filed On: 08-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARUCHURI DINESH
• Keywords: Opportunity of being heard; Set aside
• Section: 234B; 143(1); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 18 21 /H/20 17 ASSESSMENT YEAR: 2 0 0 8 - 0 9 CS K REALTORS LIMITED, HYDERABAD. PAN AA CCC6350N VS. DY . COMMISSIONER OF INCOME - TAX , CIRCLE 1 ( 2 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: S MT. S. SANDHYA REVENUE BY: S HRI PARUCHURI DINESH DATE OF HEARING: 21 / 1 0/2021 DATE OF PRONOUNCEMENT: 26 / 10 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 1 , HYDERABADS ORDER DATED 3 1/0 7 /20 17 FOR AY 20 08 - 09 INVOLVING PROCEEDINGS U/S 154 THE INCOME TAX ACT, 1961; IN SHORT THE ACT , ON THE FOLLOWING GROUNDS OF APPEAL: 1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DISMISSING THE APPEAL ON THE GROUND THAT THE TAXES AS ADMITTED WERE NOT PAID. I TA NO. 1821 /HYD /20 17 CSK REALTORS LTD., HYD . : - 2 - : 3) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE CONSIDERED THE FACT THAT THE INCOME AROSE IS ON A CCOUNT OF SALE OF LAND AND THE INCOME WAS NOT DERIVED AT THE TIME AND, THEREFORE, THE PROVISIONS OF SEC.234C ARE NOT APPLICABLE TO THE ENTIRE AMOUNT. 4) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING CHARGING OF INTEREST U/S 234B OF THE I. T. ACT. 5) ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 2 . BRIEFLY THE FACTS OF THE CASE ARE THAT T HE ASSESSE E COMPANY ENGAGED IN THE BUSINESS OF REAL ESTATE, E - FILED ITS RETURN OF INCOME ON 29.09.2008 DECLARING TOTAL INCOME OF RS.45,67,33,720 / - . THE RETURN WAS PROCESSED U / S.143(1) OF THE IT ACT ON 30.03.2010 RAISING A DEMAND OF RS.20,03,42,120 / - . SUBSEQUENTLY, T HE ASSESSEE COMPANY FILED A PETITION U / S.154 DATED 19.01.2013 REGARDING THE QUANTIFICATION OF INTEREST UJS.234C BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER ISSUED A LETTER DATED 23.01.2013 TO THE ASSESSEE COMPANY REJECTING THE PETITION U / S 154 STAT ING THAT THE ASSESSEE COMPANY DECLARED INCOME OF RS.45,67,33,702 / - WITHOUT PAYING THE SELF - ASSESSMENT TAX. 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND SUBMITTED A S THERE IS A MISTAKE IN QUANTIFICATION OF TH E TAX, THE APPELLANT FILED A RECTIFICATION APPLICATION TO THE 143(1) INTIMATION. I TA NO. 1821 /HYD /20 17 CSK REALTORS LTD., HYD . : - 3 - : THE APPELLANT SUBMITTED THAT THE INTEREST QUANTIFIED UNDER SECTION 234C OF THE ACT IS IN EXCESS OF WHAT WAS SUPPOSED TO HAVE BEEN CHARGED. THE APPELLANT SUBMITTED THAT THE INT EREST UNDER SECTION 234C OF THE ACT SHOULD HAVE BEEN RS.50,01,095/ - , HOWEVER, THE ASSESSING OFFICER ARRIVED AT THE INTEREST OF RS.78,39,811/ - IN THE 143(1) INTIMATION. THE APPELLANT FURTHER SUBMITTED THAT THE ONLY ISSUE IS THE ERROR IN QUANTIFICATION OF IN TEREST UNDER SECTION 234C OF THE ACT AND THE ASSESSING OFFICER HAS NOT GIVEN THE DETAILS OF COMPUTATION AND IN THE ABSENCE OF THE SAME IT WILL BE DIFFICULT TO POINT OUT THE ERROR IN THE INTIMATION. THE APPELLANT SUBMITTED THAT AS PER CALCULATION MADE BY IT , THE INTEREST UNDER SECTION 234C OF THE ACT IS EXCESSIVE BY RS.28,38,716/ - . 4. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE CIT(A) OBSERVED THAT IT WA S FOUND THAT THE APPELLANT HA D NOT PAID TAXES ON ADMITTED INCOME. APPELLANT WAS ASKED TO PROD UCE CALCULATION OF ADVANCE TAX MADE DURING THE YEAR IN COMPARISON TO EARLIER YEAR , BUT, WAS NOT ABLE TO PRODUCE ANY DOCUMENTARY EVIDENCE TO SAY TAXES/ADVANCE TAX WERE PAID PROPERLY. IN VIEW OF THE ABOVE OBSERVATIONS, THE CIT(A) CONFIRMED THE ORDER OF AO. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. I TA NO. 1821 /HYD /20 17 CSK REALTORS LTD., HYD . : - 4 - : 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE ORDERS OF REVENUE AUTHORITIES. THE AO REJECTED THE PETITION FIL ED BY THE ASSESSEE U/S 154 OF THE ACT ON THE GROUND THAT THE ASSESSEE DECLARED THE INCOME WITHOUT PAYING THE SELF - ASSESSMENT TAX. THE CONTENTION OF THE ASSESSEE BEFORE THE CIT(A) WAS THAT SINCE THERE IS A MISTAKE IN QUANTIFICATION OF TAX, THE ASSESSEE FILE D A RECTIFICATION APPLICATION TO THE 143(1) INTIMATION. FURTHER, SUBMITTED THAT THE INTEREST QUANTIFIED U/S 234C OF THE ACT WAS IN EXCESS OF WHAT WAS SUPPOSED TO HAVE BEEN CHARGED AS IT SHOULD HAVE BEEN RS. 50,01,095/ - , BUT, THE AO ARRIVED THE INTEREST AT RS. 78,39,811/ - IN THE 143(1) INTIMATION. 6.1 THE CONTENTION OF THE ASSESSEE BEFORE US ALSO THAT THE ONLY ISSUE IS THE ERROR IN QUANTIFICATION OF INTEREST U/S 234C AND THE AO HAS NOT GIVEN THE DETAILS OF COMPUTATION AND IN THE ABSENCE OF THE SAME IT WILL BE DIFFICULT TO POINT OUT THE ERROR IN THE INTIMATION AS THE CALCULATION MADE BY IT, THE INTEREST U/S 234C IS EXCESSIVE BY RS. 28,38,716/ - . IN VIEW OF THE SUBMISSIONS OF THE ASSESSEE, WE SET ASIDE THE ORDER OF THE CIT(A) AND REMIT THE ISSUE BACK TO THE FI LE OF THE AO WITH A DIRECTION TO ADDRESS THE GRIEVANCE OF THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN THE MATTER. I TA NO. 1821 /HYD /20 17 CSK REALTORS LTD., HYD . : - 5 - : 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 26 TH OCTOBER , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 26 TH OCTOBER , 20 2 1 . K V C OPY TO : 1 CSK REALTORS LTD., 5 - 9 - 30/1/17, PALACE COLONY, LAKE HILL ROAD, BASHEERBAGH, HYDERABAD . 2 D C IT CIRCLE 1 ( 2 ), AYAKAR BHAVAN, BASHEERBAGH, HYDERABAD . 3 C I T(A) 1 , HYDERABAD. 4 PR. CIT 1 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER