Kambam Srinivasulu Reddy, Visakhapatnam V. The Commissioner of Income Tax-1, Visakhapatnam

ITA 222/VIZ/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7766 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-07-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 25-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: C KAMESWARA RAO
• Keywords: Set aside
• Section: 143(3); 143(1); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 22 2 / VIZ /201 9 (ASST. YEAR : 20 11 - 12 ) KAMBAM SRINIVASULU REDDY, D.NO. 16 - 4 - 1773, HARANADHAPURAM, 4 TH LANE, NELLORE. V S . CIT - 1 , VISAKHAPATNAM PAN NO. AGKPK 6729 L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. KAMESWARA RAO , CA . DEPARTMENT BY : SHRI S.R . SHANKAR NARAYAN , CIT DR SMT. SUMAN MALIK, SR.DR DATE OF HEARING : 2 7 / 0 1 /20 20 . DATE OF PRONOUNCEMENT : 29 / 0 1 / 2020 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 9 , HYDERABAD , DATED 22 /0 2 /201 9 FOR THE ASSESSMENT YEAR 20 11 - 12 . 2. FACTS OF THE CASE IN BRIEF ARE THAT ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF EXECUTION OF CONTRACT WORKS, FILED HIS RETURN OF INCOME ADMITTING TOTAL INCOME OF RS. 5,73, 840/ - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED U/SEC. 143(1) AND SUBSEQUENTLY SELECTED FOR SCRUTINY UNDER CASS. ACCORDINGLY, ASSESSMENT WAS COMPLETED BY MAKING THE ADDITION OF 2 ITA NO. 22 2 /VIZ/2019 ( KAMBAM SRINIVASULU REDDY ) RS. 23,99,860/ - . SUBSEQUENTLY , LD.COMMISSIONER BY EXERCISING POWERS CONFERRED BY HIM U/SEC. 263 , HE HAS NOTICED THAT THE ASSESSING OFFICER HAS MADE THE ADDITION OF RS. 2,96,459/ - AND FAILED TO VERIFY THE SOURCE OF DEPOSITS AMOUNTING TO RS.14,81,336/ - FURTHER , IT IS NOTICED THAT ASSESSEE HAS SHOWN ONLY CASH B A LANCE OF RS. 1,21,826/ - , BUT NOT SHOWN THE FOLLOWING BANK BALANCES ON THE ASSETS SIDE OF THE BALANCE SHEET: - 1. ING VYSYA BANK A/C NO. 755010031335 RS. 10,048/ - 2. ING VYSYA BANK A/C NO. 755011009476 RS. 22,252/ - 3. INDIAN BANK A/C NO. 862002428 RS. 32,358/ - TOTAL BANK BALANCE RS. 64,658/ - THE LD.COMMISSIONER ALSO NOTICED THAT THE ASSESSING OFFICER HAS NOT ASKED THE JOINT ACCOUNT OF THE ASSESSEE ALONG WITH HIS WIFE ACCOUNT NO. 11621002700173 HELD WITH ANDHRA BANK , NELLORE . A CCORDING TO THE LD.COMMISSIONER, THE ORDER PASSED BY THE ASSESSING OFFICER IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE AND DIRECTED THE ASSESSING OFFICER TO REDO THE ASSESSMENT IN ACCORDANCE WITH LAW AFTER GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE. ME ANWHILE , THE ASSESSEE HAS CHALLENGED THE ORDER PASSED BY THE ASSESSING OFFICER U/SEC. 143(3) DATED 14/03/ 2014 IN RESPECT OF FOLLOWING ADDITIONS MADE BY THE ASSESSING OFFICER. ONE OF THE ADDITIONS IS RS. 15,02,760 / - UNDER THE HEAD INCOME FROM BUSINESS & PROFESSION, ANOTHER ADDITION IS RS. 10,043 / - UNDER THE HEAD INCOME FROM OTHER SOURCE S AND ONE 3 ITA NO. 22 2 /VIZ/2019 ( KAMBAM SRINIVASULU REDDY ) MORE ADDITION IS RS. 16,762/ - UNDER THE HEAD INCOME FROM OTHER SOURCES . THESE THREE ADDITIONS ARE NOT SUBJECT MATTER OF 263 AS SUBMITTED BY THE LD.AR. THESE THREE ADDITIONS MADE BY THE ASSESSING OFFICER WERE NOT TAKEN UP FOR REV IEW U/SEC. 263 BY THE LD.COMMISSIONER AND THE SAME IS NOT COVERED UNDER THE ORDER OF THE LD.COMMISSIONER DATED 31/03/2016 , THEREFORE THE ASSESSEE HAS A RIGHT TO FILE APPEAL. ACCO RDINGLY, THE ASSESSEE PREFERRED THE APPEAL IN RESPECT OF THE ADDITIONS NOT COVERED BY THE ORDER PASSED BY THE LD.COMMISSIONER U/SEC. 263 DATED 31/03/2016 . HOWEVER, LD. CIT(A) WITHOUT EX A MI NI NG THE SAME, DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER ON 28/12/2016 IS MERGED WITH THE ORDER PASSED BY THE PR. COMMISSIONER AND THEREFORE APPEAL IS NOT SURVIVE . 3 . I FIND THAT PR. COMMISSIONER HAS TAKEN ONLY CERTAIN ADDITIONS BY WHICH ASSESSING OFFICER HAS NOT MADE ANY ENQUIRY , T HEREFORE, SET ASIDE THE ORDER AND DIRECTED TO REDO THE ASSESSMENT. AS T HE ADDITIONS WHICH ARE NOT TAKEN UP FOR SCRUTINY BY THE PR.COMMISSIONER U/SEC. 263 , THE ASSESSEE HA S A RIGHT TO CARRY APPEAL, TH EREFORE IT IS THE DUTY OF THE LD.COMMISSIONER TO ADJUDICATE THE APPEAL ON MERITS FOR THE REASON THAT THE ENTIRE ORDER PASSED BY THE ASSESSING OFFICER U/SEC. 143(3) DATED 14/03/2014 NOT TAK E N UP FOR SCRUTINY. THE PR. COMMISS IONER HAS 4 ITA NO. 22 2 /VIZ/2019 ( KAMBAM SRINIVASULU REDDY ) TAKEN ONLY TWO ISSUES FOR HEA R ING AS I HAVE ALREADY DISCUSSED IN EARLIER PARAGRAPHS. IN VIEW OF THE ABOVE, I SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE LD.CIT(A) TO ADJUDICATE THE APPEAL FILED BY THE ASSESSEE O N THE ISSUES WHICH ARE NOT COVERED U/SEC. 263 , DATED 31/03/2016 AND DECIDE THE APPEAL IN ACCORDANCE WITH LAW. THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 4 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE . ORDER PRONOUNCED IN OPEN COURT ON TH IS 29 TH DAY OF JAN. , 20 20 . SD/ - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 29 TH JANUARY, 20 20 . VR/ - COPY TO: 1. THE ASSESSEE KAMBAM SRINIVASULU REDDY, D.NO. 16 - 4 - 1773, HARANADHAPURAM, 4 TH LANE, NELLORE. 2. THE REVENUE - ITO, WARD - 3(2), VIZIANAGARAM. 3. THE PR. CIT - 1, VISAKHAPATNAM. 4. THE CIT(A) - 9, HYDERABAD. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.