Treasure Home Requirements Private Limited , Secunderabad V. Income Tax Officer, Ward-2(4) , Hyderabad

ITA 1902/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3196 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 27-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A VENKATA RAO
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 143(3); 142(1); 13; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 1901 & 1902 /HYD/2019 ASSESSMENT YEAR S : 2012 - 13 & 2013 - 14 M/S. TREASURE HOME REQUIREMENTS PVT LTD., HYDERABAD. PAN: AADCT 8028 R VS. INCOME TAX OFFICER, WARD - 2(4), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHANA RAO REVENUE BY: SHRI A. VENKATA RAO, DR DATE OF HEARING: 15/03/2021 DATE OF PRONOUNCEMENT: 15 /06/2021 ORDER PER A. MOHAN ALANKAMONY, AM.: THESE TWO APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT (A) - 1, GUNTUR DATED 07/08/2019 & 08/08/2019 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE AY: 2012 - 13 AND 2013 - 14 RESPECTIVELY . 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN BOTH OF ITS APPEALS HOWEVER, THE CRUX OF THE ISSUE IS THAT: 2 THE LD. CIT (A) HAD ERRED IN CONFIRMING THE ADDITION MADE BY THE LD. AO WHO HAD UNWARRANTEDLY ESTIMATED THE INCOME OF THE ASSESSEE ON ITS TOTAL TURNOVER . 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THERE IS A DELAY OF 63 DAYS IN FILING BOTH TH E INSTANT APPEALS BEFORE THE TRIBUNAL. ON PERUSAL OF THE AFFIDAVIT FILED BY THE ASSESSEE IT APPEARS THAT THE APPEAL PAPERS WERE MISPLACED BY ONE OF THE OFFICE STAFF OF THE ASSESSEE AND THEREFORE THERE IS A DELAY OF 63 DAYS IN FILING BOTH THE APPEAL S . ON PERUSAL OF THE ASSESSEES AFFIDAVIT AND THE REASONS STATED THEREIN, I AM OF THE VIEW THAT THOUGH THE RE IS SOME NEGLIGENCE ON THE PART OF THE ASSESSEE IT CANNOT BE FULLY ATTRIBUT ED TO THE ASSESSEE . THEREFORE , IN THE INTEREST OF JUSTICE I HEREBY CONDONE THE DELAY OF 63 DAYS IN FILING BOTH THE APPEALS AND PROCEED TO ADJUDICATE THE MATTER ON MERITS. 4 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF TRADING IN HOME APPLIANCES FILED ITS RETURN OF INCOME FOR THE AY 2012 - 13 ON 30/09/2013 DECLARING TOTAL INCOME OF RS. 4,32,343/ - AND FOR THE AY 2013 - 14 FILED ITS RETURN OF INCOME ON 7/10/2013 (SIC 2014) DECLARING INCOME OF RS. 5,25,470/ - . THEREAFTER, BOTH THE RETURNS OF THE ASSESSEE WERE SELECTED FOR SCRUTINY UNDER CASS AND NOTICES U/S. 142(1) OF THE ACT WAS ISSUED. DURING THE ASSESSMENT PROCEEDINGS FOR THE AY 2012 - 13 THE ASSESSEE FAILED TO PRODUCE THE BOOKS OF ACCOUNTS AND THE BILLS AND VOUCHERS WERE NOT 3 TRACEABLE SINCE THE ASSESSEE COMPANY WAS CLOSED A YEAR AGO. THEREFORE, THE LD. AO ESTIMATED THE INCOME OF THE ASSESSEE AT 0.5% ON THE TURNOVER OF RS. 6 0,83,47,600/ - VIDE HIS ORDER DATED 31/3/2015. AS REGARDS THE AY 2013 - 14 THE ASSESSEE COMPANY WAS NOT TRACEABLE AND THEREFORE THE NOTICE U/S. 142(1) OF THE ACT WAS SERVED BY AFFIXTURE ON 15/3/2016. THEREAFTER, ASSESSMENT WAS COMPLETED U/S. 144 OF THE ACT BY ESTIMATING THE INCOME OF THE ASSESSEE @ 0.5% OF THE TOTAL TURNOVER OF RS. 69,18,62,096/ - VIDE ORDER DATED 24/3/2016. ACCORDINGLY ASSESSMENT WAS COMPLETED IN THE CASE OF THE ASSESSEE FOR BOTH THE ASSESSMENT YEARS 2012 - 13 AND 2013 - 14 BY THE LD. AO MAKING AN ADDITION OF RS. 30,41,738/ - AND RS. 34,59,310/ - RESPECTIVELY. ON APPEAL, THE LD. CIT (A) CONFIRMED THE ORDER OF THE LD. AO . A GGRIEVED BY THE ORDER OF THE LD. CIT (A), THE ASSESSEE IS ON APPEAL BEFORE US. 5 . AT OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE ASSESSEE WAS NOT ABLE TO PROPERLY REPRESENT BEFORE THE LD. REVENUE AUTHORITIES BECAUSE IT WAS NOT ABLE TO TRACE ALL THE RECORDS DUE TO THE CLOSURE OF ITS BUSINESS. THE LD. AR FURTHER REQUESTED THAT ONE MORE OPPORTUNITY MAY BE GRANTED TO THE ASSESSEE T O PRODUCE ALL THE EVIDENCE BEFORE THE LD. AO . , OTHERWISE , GREAT INJUSTICE WOULD BE INFLICTED ON THE ASSESSEE AS IT HAS ALREADY SUFFERED LOSS AND HAD TO CLOSE DOWN ITS BUSINESS . THE LD. DR ON THE OTHER HAND VEHEMENTLY ARGUED IN SUPPORT OF THE ORDER OF THE LD. CIT (A) AND PRAYED FOR CONFIRMING HIS ORDER. 4 6 . I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE IT APPEARS THAT THE ASSESSEES BUSINESS IS NOT DOING WELL DUE TO WHICH IT WAS NOT ABLE TO PROPERLY CARRY OUT STATUTORY OBLIGATIONS AND MAINTAIN ITS RECORDS. FURTHER IT ALSO APPEARS THAT DUE TO THE HARDSHIPS SUFFERED BY THE ASSESSEE IT WAS ALSO NOT ABLE TO PROPERLY REPRESENT BEFORE THE LD. REVENUE AUTHORITIES. SINCE, THE LD. AR HAS NOW ASSURED THE BENCH THAT PRESENTLY THE ASSESSEE IS IN POSSESSION OF ALL THE REQUISITE DOCUMENTS THAT ARE NECESSARY FOR ASSESSING THE INCOME OF THE ASSESSEE, I AM OF THE CONSIDERED VIEW THAT ONE MORE OPPORTUNITY SHOULD BE PROVIDED TO THE ASSESSEE IN ORDER TO PURSUE ITS CASE EFFECTIVELY . ACCORDINGLY, I HEREBY REMIT THE ENTIRE MATTER BACK TO THE FILE OF THE LD. AO FOR DE NOVO CONSIDERATION. AT THE SAME BREATH, I ALSO HEREBY DIRECT THE ASSESSEE AND ITS COUNSEL TO PROMPTLY CO - OPERATE BEFORE THE LD. REVENUE AUTH ORITIES IN THEIR PROCEEDINGS FAILING WHICH THEY SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERIT BASED ON THE MATERIALS BEFORE THEM. 7 . BEFORE PARTING, IT IS WORTHWHILE TO MENTION THAT THIS ORDER IS PRONOUNCED AFTER 90 DAYS OF HEARING THE APPEAL, WHICH IS THOUGH AGAINST THE USUAL NORMS, WE FIND IT APPROPRIATE, TAKING INTO CONSIDERATION OF THE EXTRA - ORDINARY SITUATION IN THE LIGHT OF THE LOCK - DOWN DUE TO COVID - 19 PANDEMIC. WHILE DOING SO, WE HAVE RELIED IN THE DECISION OF MUMBAI 5 BENCH OF THE TRIBUNAL IN THE CASE OF DCIT VS. JSW LTD. IN ITA NO.6264/M/2018 AND 6103/M/2018 FOR AY 2013 - 14 ORDER DATED 14TH MAY 2020. 8 . IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALSO ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN C OURT ON 15 TH JUNE, 2021. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 15 TH JUNE, 2021. OKK COPY TO: - 1) M/S. TREASURE HOME REQUIREMENTS PVT LTD., C/O. P. MURALI & CO., CHARTER ED ACCOUNTANTS, 6 - 3 - 655/2/3, SOMAJIGUDA, HYDERABAD 500 082. 2) INCOME TAX OFFICER, WARD - 2(4), HYDERABAD. 3) THE CIT (A) - 1, HYDERABAD. 4) THE PR. CIT - II, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE