The ITO, Guntur V. Sri Bathula Ramababu, Gunturu Distt.

ITA 214/VIZ/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8662 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 17-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R S ARAVINDAKSHAN
• Assessee Lawyers: N O N E
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 143(3)

Judgement Text

ITA NO. 214 /VIZAG/ 2017 BATHULA RAMBABU, GUNTUR 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM , . . , BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER . / I . T .A.NO. 214 /VIZAG/ 2017 ( / ASSESSMENT YEAR: 2010 - 11 ) ITO, WARD - 1(3) GUNTUR BATHULA RAMBABU GUNTUR [PAN NO. ABGPN4 065K ] ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI R.S. ARAVINDAKSHAN, DR / RESPONDENT BY : N O N E / DATE OF HEARING : 19.03.2 018 / DATE OF PRONOUNCEMENT : 22.03.2018 / O R D E R PER DUVVUR U R.L. REDDY, JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST ORDER OF THE CIT(A) - 1, GUNTUR DATED 30.12.2016 FOR THE ASSESSMENT YEAR 2010 - 11. THE ONLY EFFEC TIVE GROUND RAISED BY THE REVENUE IS THAT THE CIT(A) ERRED IN GRANTING RELIEF BY DEDUCTING THE ADDITION MADE BY THE ASSESSING OFFICER TOWARDS SUNDRY CREDITORS OF ` 65 LAKHS. ITA NO. 214 /VIZAG/ 2017 BATHULA RAMBABU, GUNTUR 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE E - FILED HIS RETURN OF INCOME FO R THE ASSESSMENT YEAR 2010 - 11 ON 12.10.2011 ADMITTING TOTAL INCOME OF ` 4,66,500/ - . THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') ON 28.3.2013 BY DISALLOWING THE CREDITS TO THE EXTENT OF ` 65 LAKHS A ND COMPLETED THE ASSESSMENT AND TOTAL INCOME IS ASSESSED AT ` 69,66,500/ - . AGGRIEVED BY THE DISALLOWANCE OF CREDITS, THE ASSESSEE PREFERRED AN APPEAL BEFORE CIT(A) - 1, GUNTUR. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, LD. CIT(A) ALLOWED THE APPEA L OF THE ASSESSEE. 3. AGGRIEVED, THE REVENUE PREFERRED AN APPEAL BEFORE US. THE LD.D.R. SUBMITS THAT THE ASSESSEE HAS INTRODUCED CREDITS FOR AN AMOUNT OF ` 65 LAKHS AND FILED NO CONFIRMATIONS AND DETAILS OF THE CREDITORS, SUCH AS PAN/ACCOUNT COPY OF THE C REDITORS. THEREFORE, GENUINENESS OF THE CREDITORS IS NOT ACCEPTABLE, THUS , THE ADDITION MADE ON ACCOUNT OF DISALLOWANCE OF CREDITS TO THE EXTENT OF ` 65 LAKHS BE CONFIRMED. 4. UPON PERUSAL OF THE ORDER OF THE LD. CIT(A) , THE ASSESSEE IS A CIVIL CONTRACTOR AND DURING THE SCRUTINY PROCEEDINGS, THE ASSESSING OFFICER MADE AN ADDITION OF RS. 65 LAKHS UNDER THE HEAD UNEXPLAINED CREDITS. THE ASSESSING OFFICER HAS MADE THE ADDITION ON THE GROUND THAT THE ASSESSEE HAS NOT FURNISHED THE COMPLETE AND PROPER DETAIL S FOR SUNDRY CREDITORS. IN FACT, ASSESSEE HAD FURNISHED ALL THE DOCUMENTS , THE ITA NO. 214 /VIZAG/ 2017 BATHULA RAMBABU, GUNTUR 3 ASSESSING OFFICER FAILED TO CONSIDER THE LEDGER EXTRACTS OF EXPENDITURE ETC. HE FURTHER EXTRACTED THAT THE MAJOR EXPENDITURE OF THE ASSESSEE IS ON TIPPERS RENT, TIPPERS MAINTE NANCE, BULLDOZER RENT, BULLDOZER MAINTENANCE AND PROCLAINER RENT AND UNPAID DUES ARE SHOW N AS SUNDRY CREDITORS IN THE BALANCE SHEET. THE LD. CIT(A) FURTHER OBSERVED THAT THE ASSESSEE HAS FILED THE CONFIRMATIONS AND THE DETAILS OF THE CREDITORS. AFTER CON SIDERING THE SAME, THE LD.CIT(A) ALLOWED THE ASSESSEES APPEAL. 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 6. THE MAIN CONTENTION OF THE LD. D.R . IS THAT THE DETAILS, WHICH HAVE BEEN FILED BEFORE THE CIT(A) HA VE NOT BEEN FILED BEFORE THE A.O., THEREFORE, A.O. HAD NO OPPORTUNITY TO EXAMINE THE SAME AND THE CIT(A) ALSO WITHOUT ASKING ANY REMAND REPORT FROM THE A.O., HE HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. UPO N PERUSAL OF THE ASSESSMENT ORDER, THERE IS NO EVIDENCE PLACED BEFORE THE A.O . TO ESTABLISH THE GENUINENESS OF THE CREDITORS AND ALSO THE DETAILS OF SUNDRY CREDITORS ETC. THE LD. CIT(A) ALSO FAILED TO CALL FOR REMAND REPORT FROM THE ASSESSING OFFICER. THE REFORE, WE ARE OF THE CONSIDERED OPINION THAT THIS IS A FIT CASE TO REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT(A) WITH A DIRECTION TO EXAMINE THIS ISSUE AFRESH AFTER OBTAINING REMAND REPORT ITA NO. 214 /VIZAG/ 2017 BATHULA RAMBABU, GUNTUR 4 FROM THE A.O. AND AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. T HE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 ND MAR 20 18 . S D/ - SD/ - ( ) ( . . ) ( B.R. BASKARAN ) ( DUVVURU R.L. REDDY ) /ACCOUNTANT MEMBER /JUDICIAL MEMBER /VISAKHAPATNAM: /DATED : 22/03/2018 VG / VR / COPY OF THE ORDER FORWARDED TO : - 1. / THE APPELLANT THE ITO, WARD - 1(3), GUNTUR 2 . / THE RESPONDENT SRI BATHULA RAMBABU, D.NO.7/402, VADDERA BAZAR, DACHEPALLI (PO&MDL), GUNTUR DIST. 3 . / THE PR. CIT , GUNTUR 4 . ( ) / THE CIT (A) - 1, GUNTUR 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM