Mogilinedi Venkateswara Rao, Vijayawada V. THE CIT, Vijayawada

ITA 201/VIZ/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0210 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 25-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TH LUCAS PETER
• Assessee Lawyers: A C GANGAIAH
• Keywords: Revision of order
• Section: 143(3); 263; 63

Judgement Text

ITA NO.201/VIZAG/2015 MOGLINEEDI VENKATESWARA RAO, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . . . . , ,, , . . . . , , , , % % % % BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER . .. ./ // / I.T.A.NO.201/VIZAG/2015 ( / ASSESSMENT YEAR : 2010-11 ) MOGLINEEDI VENKATESWARA RAO VIJAYAWADA VS. CIT VIJAYAWADA [ PAN: AHGPM3416R ] (, , , , / APPELLANT) (-., -., -., -., / RESPONDENT ) , / / APPELLANT BY : SHRI A.C. GANGAIAH, AR -., / / RESPONDENT BY : SHRI TH.LUCAS PETER, CIT(DR) / 3 / DATE OF HEARING : 29.10.2015 / 3 / DATE OF PRONOUNCEMENT : 27.11.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF CIT, VIJAYAWADA DATED 27.3.2015 FOR THE ASSESSMENT YEAR 2010-11. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF LABOUR CONTRACT WORKS FILED A RETURN OF INCOME FOR THE ASSESSMENT YEAR ITA NO.201/VIZAG/2015 MOGLINEEDI VENKATESWARA RAO, VIJAYAWADA 2 UNDER CONSIDERATION BY ADMITTING TOTAL INCOME OF RS .6,88,690/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED U/S 143( 1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). THERE AFTER, FOLLOWING THE DUE PROCEDURE AND AFTER VERIFYING THE BOOKS OF ACCOUNTS , BILLS & VOUCHERS AND OTHER INFORMATION SUBMITTED BY THE ASSESSEE AFT ER EXAMINING THE SAME AND AFTER DISCUSSING ALL THE DETAILS WITH THE AR OF THE ASSESSEE, ASSESSMENT WAS COMPLETED AND ON VERIFICATION OF THE BILLS/VOUCHERS PRODUCED IN SUPPORT OF THE EXPENSES CLAIMED, IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE PAYMENT TO THE LABOURERS ARE SELF-MADE AND ALL THE VOUCHERS WERE NOT MAINTAINED PROPERLY AND A RE IN UNVERIFIABLE NATURE. THE ASSESSEES AR SUBMITTED THAT THE ASSES SEES MAIN BUSINESS BEING SUPPLY OF LABOURERS TO MUNICIPAL CORPORATION AND THE PAYMENT MADE TO LABOURERS COULD NOT BE SUPPORTED BY PROPER VOUCHERS IN VIEW OF THE UN-ORGANISED NATURE OF SECTOR, THE ASSESSING OF FICER THEREFORE PROCEEDED TO DISALLOW AN AMOUNT OF RS.2,50,000/- FR OM OUT OF EXPENSES CLAIMED TO COVER UP THE DEFICIENCIES, IF ANY AND AD DED TO THE INCOME RETURNED FOR WHICH ASSESSEES AR AGREED. 3. THEREAFTER THE COMMISSIONER WHILE EXERCISING THE POWER U/S 263 OF THE ACT CALLED AN EXPLANATION FROM THE ASSESSEE AND SET ASIDE THE ORDER PASSED BY THE AO AND DIRECTED HIM TO REDO THE ASSESSMENT IN THE LINES INDICATED BY HIM AND ALSO IN ACCORDANCE WITH LAW. ITA NO.201/VIZAG/2015 MOGLINEEDI VENKATESWARA RAO, VIJAYAWADA 3 4. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MAT TER BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUB MITTED THAT ALL THE BOOKS OF ACCOUNTS MAINTAINED BY THE ASSESSEE ARE PR ODUCED BEFORE THE AO, BILLS & VOUCHES OTHER INFORMATION AS CALLED BY THE ASSESSING OFFICER WAS ALSO PLACED BEFORE THE AO. THE ASSESSING OFFIC ER AFTER VERIFICATION OF THE BOOKS OF ACCOUNTS AND VOUCHERS AND OTHER INF ORMATION HAS DISALLOWED AN AMOUNT OF RS.2,50,000/- ON THE GROUND THAT SOME OF THE VOUCHERS ARE NOT VERIFIABLE AND AFTER EXAMINATION O F ALL THE DETAILS ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT AFTE R MAKING ADDITION OF RS.2,50,000/-. THEREFORE THE ORDER PASSED BY TH E ASSESSING OFFICER CANNOT BE SAID THAT WITHOUT EXAMINING AND WITHOUT A PPLYING THE MIND AND HE CONSIDERED ALL THE DETAILS AND ACCORDINGLY A SSESSMENT WAS COMPLETED AND SUBMITTED THAT ORDER U/S 263 OF THE A CT PASSED BY THE COMMISSIONER CANNOT SURVIVE. 5. ON THE OTHER HAND, THE LD. DR HAS SUPPORTED THE ORDER PASSED BY THE LD. COMMISSIONER. 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE RECO RDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND FROM THE ASSESSMENT ORDER THAT BOOKS OF ACCOUNTS PRODUCE D BY THE ASSESSEE, BILLS & VOUCHERS AND THE OTHER INFORMATIO N AS CALLED WERE EXAMINED BY THE ASSESSING OFFICER AND HE CAME TO A CONCLUSION ITA NO.201/VIZAG/2015 MOGLINEEDI VENKATESWARA RAO, VIJAYAWADA 4 THAT SOME OF THE EXPENDITURE CLAIMED BY THE ASSESSE E TO THE EXTENT OF RS.2,50,000/- WERE UNVERIFIABLE AND DISALLOWED THE SAME. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT THE AO AFTER EXAMINING ALL THE DETAILS AFTER APPLYING HIS MIND DISALLOWED THE EXPENDITURE TO THE EXTENT OF RS.2,50,000/-. THEREF ORE, THE ORDER PASSED BY THE AO CANNOT BE SAID THAT IT WAS PASSED WITHOUT CONSIDERING THE FACTS AND WITHOUT APPLICATION OF MIND. WE THEREFORE , ARE OF THE OPINION THAT THE ORDER PASSED BY THE LD. COMMISSIONER U/S 2 63 OF THE ACT CANNOT SURVIVE. IT HAS TO BE QUASHED. IN SIMILAR CIRCUMSTANCES, BY FOLLOWING THE JUDGEMENT OF THE HONBLE JURISDICTION AL HIGH COURT OF ANDHRA PRADESH IN THE CASE OF CIT-VI HYDERABAD VS. M/S. ANAND FOOD PRODUCTS IN ITTA NO.382 OF 2013, WE QUASH THE ORDER OF THE CIT PASSED U/S 263 OF THE ACT AND THUS THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 27 TH NOV15. SD/- SD/- ( (( ( . . . . ) ( ) ( ) ( ) ( . .. . ) )) ) ( (( ( G. MANJUNATHA) ( (( ( V. DURGA RAO ) )) ) / // / ACCOUNTANT MEMBER / // / JUDICIAL MEMBER /VISAKHAPATNAM: 6 / DATED : 27.11.2015 VG/SPS ITA NO.201/VIZAG/2015 MOGLINEEDI VENKATESWARA RAO, VIJAYAWADA 5 / - 7 / COPY OF THE ORDER FORWARDED TO :8 1. , / THE APPELLANT MOGLINEEDI VENKATESWARA RAO, G-6 VANDANA APARTMENT, PYDAIAH STREET, LABBIPET, VIJAYAWADA 2. -., / THE RESPONDENT : / THE CIT, VIJAYAWADA 3. THE ITO, WARD-2(2), VIJAYAWADA 4. : () / THE CIT(A), VIJAYAWADA 5. -, , / // / DR, ITAT, VISAKHAPATNAM 6 . . . . / GUARD FILE / BY ORDER // TRUE COPY // @A ( SR.PRIVATE SECRETARY ) , / // / ITAT, VISAKHAPATNAM