M/s Sriram Constructions, Hyderabad V. Asst.Commissioner of Income Tax, Circle-15(1), Hyderabad

ITA 2073/Hyd/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7310 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVINDAKSHAN
• Assessee Lawyers: S RAMA RAO
• Keywords: Opportunity of being heard
• Section: 143(3); 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI C.N. PRASAD , JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 2073 /HYD/201 7 ASSESSMENT YEAR: 20 1 4 - 1 5 (THROUGH VIDEO CONFERENCE) SRI RAM CONSTRUCTIONS, HYDERABAD. VS. ASST. COMMISSIONER OF INCOME - TAX, CIRCLE 15(1), HYDERABAD. ( APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : S HRI ARVINDAKSHAN DATE OF HEARING : 02 / 0 9 /20 20 DATE OF PRONOUNCEMENT : 03 / 09 / 20 20 O R D E R PER M. BALAGANESH , A .M. : T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 7 , DATED 23 / 1 0 /20 1 7 , HYDERABAD FOR AY 20 1 4 - 15 2. BRIEF FACTS ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM HAD FILED ITS RETURN OF INCOME FOR AY 2014 - 15 ON 16/07/2014 ADMITTING TOTAL INCOME OF RS. NIL AFTER CLAIMING DEDUCTION U/S 80IB(10). THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE IT ACT BY MAKING THE FOLLOWING DISALLOWANCES: A) D ISALLOWANCE OF CLAIM U/S 80IB OF THE ACT RS. 27,83,916/ - B) DISALLOWANCE OF PAYMENTS MADE TO LAND LORDS RS. 1,04,81,820/ - C) DISALLOWANCE OF COST OF LAND - RS. 6,97,125/ - D) DISALLOWANCE OF CREDITORS FOR REPAIRS & MAINTENANCE CHARGES - RS. 24,28,805/ - 2 ITA NO. 2073 /HYD/1 7 SRI RAM CONSTRUCTIONS, HYD. 3. AT THE OUTSET, WE FIND THAT THE ORDER OF LD. CIT(A) WAS PASSED EX - PARTE WITHOUT SECURING THE PRESENCE OF THE ASSESSEE OR ITS AUTHORISED REPRESENTATIVE. FROM THE PERUSAL OF THE ORDER OF LD. CIT(A), WE FIND THAT HE HAD MERELY REPRODUCED THE OBSERVATIONS MADE BY THE LD. AO VERBATIM WITHOUT GIVING HIS INDEPENDENT FINDINGS ON VARIOUS DISALLOWANCE S MADE. THE LD. AR ALSO STATED BEFORE US THAT THE SAID CLAIMS WERE VERY MUCH ALLOWED TO THE ASSESSEE BY LD. CIT (A) IN SUBSEQUENT YEARS. WE, THEREFORE, DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE LD. CIT(A) FOR DE - NOVO ADJUDICATION ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT THE ASSESSEE BE GIVEN REASONABLE OPPORTUNITY OF BEING HEARD. WE ALSO DIRECT THE LD. CIT(A) TO CONSIDER THE SUBSEQUENT YEARS DECISIONS PASSED BY HIS P REDECESSORS WHILE DECIDING THE ISSUE ON MERITS. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 3 RD SEPTEMBER , 20 20 . SD/ - SD/ - ( C.N. PRASAD ) ( M. BALAGANESH ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 3 RD SEPTEMBER , 20 20 . KV C OPY TO: - 1) SRI RAM CONSTRUCTIONS, C/O SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3 - 6 - 643, STREET NO. 9, HIMAYATNAGAR, HYDERABAD 500 029. 2) ACIT, CIRCLE 15(1), IT TOWERS, AC GUARDS, HYDERABAD. 3) CIT(A) 7 HYDERABAD. 4) PR. CIT - 7 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE