Aspiring Enterpries Private Limited , Hyderabad V. Income Tax Officer, Ward-1(2) , Hyderabad

ITA 198/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2164 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 13-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Opportunity of being heard
• Section: 271(1)(c); 143(3); 201; 69A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 198 /H/20 20 ASSESSMENT YEAR: 2 0 1 3 - 1 4 ASPIRING ENTERPRISES PVT. LTD. , HYDERABAD. PAN A A CC 47306E VS. INCOME - TAX OFFICER, WARD 1 ( 4 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHANA RAO REVENUE BY: S HRI ROHIT MUJUMDAR DATE OF HEARING: 0 8 /0 6 /2021 DATE OF PRONOUNCEMENT: 29 /0 6 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 1 , GUNTUR S ORDER DATED 2 8 / 0 3 /201 6 FOR AY 20 1 3 - 1 4 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED 14 GROUNDS OF APPEAL, OUT OF WHICH, HE PRESSED MAINLY GROUND NO. 4 THAT THE LD. CIT(A) I TA NO. 1 98 /HYD /20 20 M/S ASPIRING ENTERPRISES PVT. LTD., HYD. : - 2 - : HAS ERRED IN HOLDING THAT SINCE THE FINANCIAL S TATEMENTS FOR THE FY 2011 - 12 HAVE NOT BEEN FILED BEFORE THE AO, THE SAME CANNOT BE CONSIDERED AS A MATERIAL FOR DISPOSING GROUND NO. 3 TO 6 RAISED BY THE APPELLANT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY, ENGAGED IN THE BUSINESS OF TRADING OF IRON AND STE E L PRODUCTS, FILED ITS E - RETURN OF INCOME FOR THE AY 2013 - 14 ON 30/09/2013 DECLARING TOTAL LOSS OF RS. 16,610/ - . SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND ACCORDINGLY STATUTORY NOTICES WERE ISSUED TO THE ASSESSEE. THE AR OF THE ASSESSEE FURNISHED THE INFORMATION AS CALLED FOR. 2.1 THE AO NOTICE D FROM THE BANK STATEMENT OF THE ASSESSEE WITH BANK OF BARODA VIDE ACCOUNT NO. 05110200000481THAT THE ASSESSEE HAD MADE CASH DEPOSITS OF RS. 2,06,60,000/ - . WHEN ASKED TO EXPLAIN THE SOURCES OF THE SAID CASH DEPOSITS, THE ASSESSEE SUBMITTED THAT THE CASH DEPOSITS WERE OUT OF OPENING CASH BALANCE. SINCE, THE ASSESSEE COULD NOT OFFER ANY OTHER EXPLANATION WITH CONVINCING EVIDENCE TO SUBSTANTIATE THE SOURCES FOR CASH DEPOSITS, THE AO TREATED THE SAME AS UNEXPLAINED INCOME. 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. I TA NO. 1 98 /HYD /20 20 M/S ASPIRING ENTERPRISES PVT. LTD., HYD. : - 3 - : 4. BEFORE US, THE LD. AR SUBMITTED THAT THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL B EFORE THE CIT(A) AND THE CIT(A) HAS NOT ADJUDICATED GROUND NOS. 3 TO 6 ON THE GROUND THAT THE FINANCIAL STATEMENTS WERE NOT FILED BEFORE THE AO, HENCE, THESE GROUNDS ARE CONSIDERED FOR DISPOSAL.: (1) 'THE ORDER OF THE AO U/S.143(3) OF THE ACT DATED 28.03. 201615 BAD IN LAW AND ON FADS AND THEREFORE IS NOT SUSTAINABLE IN LAW. (2) THE AO HAS MADE AN ARITHMETICAL ERROR WHILE DETERMINING THE TOTAL ASSESSED IN COME AT RS. 2,06,76,610/ - INSTEAD OF RS.2,06,43,390/ - . (3) THE AO HAS E R R ED IN MAKING AN ADDITION O F RS.2,09,60,OOOLTOWARDS UNEXPLA I NED INCOME U/S .69A OF THE ACT WITHOUT CONSIDERING THE S UBMISSION S MADE BY THE ASSESSEE. (4) THE AO OUGHT TO HAVE APPRECIATED THE FACT THAT THE DEPOSITS IN THE ' - BANK ACCOUNT OF THE ASSESSEE HAVE BEEN MADE FROM THE OPENING CASH BALANCE AVAILABLE WITH THE COMPANY. (5) THE AO OUGHT TO HAVE APPRECIATED THE FACT THAT THE ASSESSEE HAS SUBMITTED THE ANNUAL R EPORT FOR THE A.Y.2012 - 13 WHICH HAS BEEN AUDITED BY THE CHARTERED ACCOUNTANTS OF THE C OMPANY AND IT SHOWS .THAT THE CLOSING CASH BALANCE FOR THAT YEAR WAS RS.2,11,92,830 / - . (6) THE AO OUGHT TO HAVE APPRECIATED THE FACT THAT THE ASSESSEE HAS PR OVED THE SO URCE OF DEPOSITS AND THUS, PROVISIONS OF SECTION 69A OF THE ACT DO NOT APPLY TO THE ASSESSEE. I TA NO. 1 98 /HYD /20 20 M/S ASPIRING ENTERPRISES PVT. LTD., HYD. : - 4 - : ( 7) THE AO ERRED IN INITIATING PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT AGAINST THE ASSESSEE. (8) THE ASSESSEE MAY ADD, ALTER OR MODIFY ANY OTHER POINTS TO THE GROUNDS OF APPEAL AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE CASE. 4.1 HE, THEREF ORE, REQUESTED THE BENCH TO REMIT THE MATTER BACK TO THE FILE OF THE CIT(A) TO CONSIDER AND DISPOSE OF THE GROUND NOS. 3 TO 6 RAISED BEFORE HIM. 5. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDERS OF REVENUE AUTHORITIES. 6. WE HAVE CONSIDERED THE RIV AL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE ORDERS OF REVENUE AUTHORITIES. WE FIND THAT AS SUBMITTED BY THE LD. AR OF THE ASSESSEE, THE CIT(A) DID NOT DISPOSE OF THE GROUND NOS. 3 TO 6 RAISED BY THE ASSESSEE BEFORE HIM BY OBSERVING AS UNDER: THE APPELLANT FILED DETAILS OF CASH EQUIVALENTS AS ON 31/03/2012 AT RS. 2,11,92,830/ - AND ALSO FILED CASH BOOK AND BANK ACCOUNT FOR FY 2011 - 12 AND FOR FY 2012 - 13. SIMILARLY, THE DETAILS OF SHORT TERM LOANS AND ADVANCES FOR THE FYS 201 1 - 12 AND 2012 - 13 WERE ALSO FILED. IT IS TO BE NOTED THAT THE FINANCIALS FOR THE FY 2011 - 12 WERE NOT FILED BEFORE THE AO, HENCE, THE SAME CANNOT BE CONSIDERED AS A MATERIAL FOR DISPOSING THE GROUNDS RAISED BY THE APPELLANT. THE APPELLANT ALSO FILED LEDGER A CCOUNT COPY OF M/S VICTORIA STEELS ENTERPRISES LTD., FOR THE FYS 2011 - 12 AND 2012 - 13 TO STATE THERE IS MISTAKE CREPT IN SHORT TERM LOANS AND ADVANCES. IN THIS REGARD, IT IS TO BE MADE CLEAR THAT THE ACCOUNT COPY OF M/S VICTORIA I TA NO. 1 98 /HYD /20 20 M/S ASPIRING ENTERPRISES PVT. LTD., HYD. : - 5 - : STEELS ENTERPRISES LTD FOR T HE FY 2011 - 12 WAS NOT FILED BEFORE THE AO AND HENCE THE SAME IS NOT CONSIDERED TO DISPOSE THE GROUNDS RAISED BY THE APPELLANT. 6.1 THEREFORE, WE REMIT THE FILE BACK TO CIT(A) WITH A DIRECTION TO DISPOSE OF THE GROUND NOS. 3 TO 6 RAISED BEFORE HIM IN ACCORDANCE WITH LAW AND ON MERITS AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO PUT - FORTH ALL THE DOCUMENTS , NAMELY, FINANCIAL STATEMENTS, ETC. TO SUBSTANTIATE ITS CLAIM AND THAT ARE REQUIRED TO DISPOSE OF THE SAID GROUNDS. IF THE CIT(A) FEELS THAT THE SAME WERE NOT SUBMITTED BEFORE THE AO, HE CAN FORWARD THE DOCUMENTS TO AO AND CALL FOR A REMAND REPORT, IF NECESSARY. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 29 TH JUNE , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 29 TH JUNE , 20 2 1 . K V I TA NO. 1 98 /HYD /20 20 M/S ASPIRING ENTERPRISES PVT. LTD., HYD. : - 6 - : C OPY TO : 1 M/S ASPIRING ENTERPRISES PVT. LTD., C/O P. MURALI & CO., CAS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82 2 IT O , WARD 1 ( 2 ) , HYDERABAD. 3 C I T(A) 1 , GUNTUR 4 PR. CIT - 1 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.