Dy. Commissioner of Income Tax , Central Circle-1(1), Hyderabad V. ACP Industries Limited, Hyderabad

ITA 193/Hyd/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2724 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 05-10-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 29-01-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Notional interest
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 193/HYD/2018 2011-12 DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD M/S.ACP INDUSTRIES LIMITED, HYDERABAD [PAN: AABCA4804E] 267/HYD/2018 M/S.ACP INDUSTRIES LIMITED, HYDERABAD [PAN: AABCA4804E] DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD FOR ASSESSEE : SHRI K.A.SAI PRASAD, AR FOR REVENUE : SHRI Y.V.S.T.SAI, CIT-DR DATE OF HEARING : 05-10-2021 DATE OF PRONOUNCEMENT : 27-10-2021 O R D E R PER S.S.GODARA, J.M. : THESE REVENUES AND ASSESSEES CROSS APPEALS FOR AY.2011-12 ARISE AGAINST THE CIT(A)-1, HYDERABADS OR DER(S) DATED 20-10-2017 IN APPEAL NOS.0340 / CIT(A)-1 / HYD / 2014-15 / 2017-18, INVOLVING PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]; RESPECTIVELY . HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. THE REVENUES AND ASSESSEES RESPECTIVE PLEADING S HEREIN CHALLENGE CORRECTNESS OF THE CIT(A)S ACTION DELETIN G DISALLOWANCE OF TRADE DISCOUNT ON SALES OF RS.4,39,72 ,368/- AND UPHOLDING SECTION 14A DISALLOWANCE OF RS.23,98,4 38/-, NOTIONAL INTEREST DISALLOWANCE/ADDITION OF RS.1,92,67 ,755/-, UN-ACCOUNTED INCOME OF RS.6,16,37,930/- AND UN-SECUR ED ITA NOS. 193 & 267/HYD/2018 :- 2 -: LOANS OF RS.6,94,01,241/-; APPEAL-WISE RESPECTIVELY . IT NEXT TRANSPIRES DURING THE COURSE OF HEARING THAT THE ASSESS ING OFFICER HAD PASSED HIS ASSESSMENT ORDER ON 28-03-201 4 EX-PARTE WHICH PRIMA FACIE INDICATES THAT THE ASSESSEE COULD NOT PRODUCE ALL THE RELEVANT SUPPORTIVE MATERIAL REGARD ING ALL THE FOREGOING ISSUES. IT APPEARS TO HAVE FILED ITS ADD ITIONAL EVIDENCE BEFORE THE CIT(A) ONLY WHICH STANDS PARTLY AC CEPTED WITHOUT GRANTING ANY OPPORTUNITY TO THE ASSESSING OFFIC ER TO REBUT THE CONTENTS THEREOF WHICH LEAVES BOTH THE PARTIES; A ND MORE PARTICULARLY THE DEPARTMENT AGGRIEVED, IN FOREGOI NG TERMS. FACED WITH THIS SITUATION, AND MORE SO WHEN THE ASSESSEE HAD FILED ITS ADDITIONAL DOCUMENTS BEFORE THE CIT(A) WHICH WERE NEVER FORWARDED TO THE ASSESSING OFFICER F OR FACTUAL VERIFICATION UNDER RULE 46A OF THE INCOME TAX RULES, WE ARE OF THE OPINION THAT LARGER INTEREST OF JUSTICE WOULD BE ME T IN CASE THE ASSESSING AUTHORITY HEREIN ADJUDICATES ALL THESE I SSUES AFRESH WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. WE ORDER ACCORDINGLY. THE REVENUES AND ASSESSEES RESPECTIV E SUBSTANTIVE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOS ES. 3. THESE REVENUES AND ASSESSEES CROSS APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. A C OPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FI LES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH OCTOBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 27-10-2021 TNMM ITA NOS. 193 & 267/HYD/2018 :- 3 -: COPY TO : 1.THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD. 2.M/S.ACP INDUSTRIES LIMITED, C/O.CH.PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST.NO.1, ASHOKNAGAR, HYDERABAD. 3.THE CIT(APPEALS)-1, HYDERABAD. 4.THE PR.CIT-1, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.