Nunna Veerabhadra Rao , Hyderabad V. Income Tax Officer, Ward-12(3), Hyderabad

ITA 198/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3249 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 18-02-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 12-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Additional evidence
• Section: 143(3); 143(1); 201; 143(2); 22

Judgement Text

ITA NO 198 OF 2019 NUNNA VEERABHADRA RAO HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.198/HYD/2019 ASSESSMENT YEAR: 2014-15 SHRI NUNNA VEERABHADRA RAO, HYDERABAD PAN:AGBPR7027H VS. INCOME TAX OFFICER WARD 12(3) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY : SRI SUNIL KUMAR PANDEY,DR DATE OF HEARING: 15/02/2021 DATE OF PRONOUNCEMENT: 22/02/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2014-15 AGAIN ST THE ORDER OF THE CIT (A)-1, HYDERABAD, DATED 25.01. 2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN DIVIDUAL FILED HIS RETURN OF INCOME FOR THE RELEVANT A.Y 201 4-15 ON 26.3.2015 DECLARING TOTAL INCOME OF RS.8,96,800/- A ND THE SAME WAS PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND THE NOTICES U/ S 143(2) AND 143(1) WERE ISSUED AND SERVED ON THE ASSESSEE. DURI NG THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE A O NOTICED THAT THE ASSESSEE HAD SOLD A PROPERTY, BUT NO EVIDENCE W AS FILED IN SUPPORT OF THE CLAIM OF THE SAID TRANSACTION. THERE FORE, HE ADDED THE ENTIRE CONSIDERATION OF RS.1,05,00,000/- TO THE RETURNED ITA NO 198 OF 2019 NUNNA VEERABHADRA RAO HYDERABAD PAGE 2 OF 3 INCOME OF THE ASSESSEE AND BROUGHT IT TO TAX. AGGRI EVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) STA TING THAT IT IS A PURCHASE OF THE PROPERTY AND NOT SALE OF THE PROPER TY. HOWEVER, THE CIT (A) DISMISSED THE ASSESSEES APPEAL AS NONE APPEARED FOR THE ASSESSEE BEFORE HIM. THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF AP PEAL: 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 DECIDING THE APPEAL WITHOUT PROVIDING OPPORTUNITY TO THE APPELLANT. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE SERVED THE NOTICE ON THE APPELLANT. 4. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE CONSIDERED THE FACT THAT THE AMOUNT O F RS.1 ,05,00,000/- REPRESENTS THE PURCHASE CONSIDERATION PAID BY THE APPELLANT; 5. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE SEEN THAT THE SAID AMOUNT OF RS.1,05,00,000J- WAS NOT THE SALE CONSIDERATION RECEIVED AGAINST THE SALE OF THE PROPERTY BUT INVESTMENT MADE AGAINST PURCHASE OF THE PROPERTY AND THAT, THEREFORE, SUCH AN ADDITION CANNOT BE MAD E BY THE ASSESSING OFFICER. 5. ANY OTHER GROUND OR GROUNDS THAT MAY BE U~ AT TH E TIME OF HEARING. 3. THE LEARNED COUNSEL FOR THE ASSESSEE HAS DRAWN O UR ATTENTION TO FORM NO.26AS WHICH IS FILED AS ADDITIO NAL EVIDENCE IN THE PAPER BOOK FILED BY THE ASSESSEE TO DEMONSTRATE THAT THE TRANSACTION WAS PURCHASE OF PROPERTY AND NOT SALE O F PROPERTY. TAKING THE SAME INTO CONSIDERATION, WE ARE INCLINED TO ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND REMAN D THE ISSUE TO THE FILE OF THE AO TO CONSIDER THE SAME DE NOVO AND IF IT IS FOUND TO BE PURCHASE OF THE PROPERTY, THEN TO COMPLETE THE A SSESSMENT DE NOVO IN ACCORDANCE WITH LAW. ITA NO 198 OF 2019 NUNNA VEERABHADRA RAO HYDERABAD PAGE 3 OF 3 4. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY, 2021. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 22 ND FEBRUARY, 2021. VINODAN/SPS COPY TO: 1 SHRI NUNNA VEERABHADRA RAO, DOOR NO.7-1-215/C/1/D /F-101, SNEHA RESIDENCY, BALKAMPET MAIN ROAD, SR NAGAR, HYD ERABAD 500039 2 ITO WARD-12 (3) HYDERABAD 3 CIT (A)-1 HYDERABAD 4 PR. CIT 1 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER