Income Tax Officer, Ward-4(3), Hyderabad V. Srinivasu Raju Bollapally , Hyderabad

ITA 2239/Hyd/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5915 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 01-10-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 03-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Keywords: Business income; Tax effect
• Section: 80C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A. NO. 2239/HYD/2018 ASSESSMENT YEAR: 2015-16 THE INCOME TAX OFFICER, WARD-4(3), HYDERABAD VS SRI SRINIVASU RAJU BOLLAPALLY, HYDERABAD [PAN: AGDPB8502B] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI NILANJAN DEY, DR FOR ASSESSEE : SHRI MOHD. AFZAL, AR DATE OF HEARING : 01-10-2019 DATE OF PRONOUNCEMENT : 01-10-2019 O R D E R PER SMT. P. MADHAVI DEVI, J.M. : THIS APPEAL FILED BY THE REVENUE, FOR THE AY.2015-16 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX(APPEALS)-1, HYDERABAD, DATED 09-10-2018. 2. AT THE TIME OF HEARING, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX COMPUTATION, GIVING EFFECT TO THE ORDE R OF CIT(A) AND RELIEF GRANTED BY THE CIT(A) IS ONLY TO THE EXTENT OF RS.46,84,601/-, WHICH IS LESS THAN THE LIMIT PRESCRIBE D BY THE CIRCULAR NO.17/2019. I.T.A. NO.2239/HYD/2018 :- 2 -: 3. LD.DR, HOWEVER, SUBMITTED THAT THE AO HAD MADE AN ADDITION OF RS.1,83,38,672/- ON ACCOUNT OF DISALLOWAN CE OF SUNDRY CREDITORS OF CURRENT YEAR ACCOUNT, AMOUNTING TO RS.1,82,11,685/- AND ALSO RS.80,000/- ON ACCOUNT OF DISALLOWANCE OF SECTION 80C CLAIM. HE SUBMITTED THAT TH E CIT(A) HAS DELETED THE ADDITION MADE ON ACCOUNT OF SUNDRY CRED ITORS AND HAS DIRECTED THE AO TO ESTIMATE INCOME ON THESE RE CEIPTS ALSO AS BUSINESS RECEIPTS @8%. HE SUBMITTED THAT SINCE THE REVENUE HAS CHALLENGED THE DELETION OF ADDITION OF SUNDRY CREDITORS OF RS.1,82,11 ,685/-, THE TAX EFFECT IN THIS APPEAL IS MORE THAN RS.50 LAKHS. HO WEVER, ON GOING THROUGH THE CIRCULAR NO.17/2019, WE FIND THAT TH E TAX EFFECT ON THE RELIEF GIVEN BY THE CIT(A) ONLY IS TO BE CONSIDERED FOR THE PURPOSE OF CONSIDERING THE MONETARY LIMIT FOR F ILING OF THE APPEALS BEFORE THE TRIBUNAL BY THE REVENUE. SINCE THE TAX EFFECT ON THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN RS.50 LAKHS, WE ARE OF THE OPINION THAT THIS APPEAL IS BELOW THE TAX LIMIT AND ACCORDINGLY, THE SAME IS DISMISSED W ITH LIBERTY TO THE REVENUE TO SEEK RECALL OF THE ORDER, IF THIS CASE FALLS IN ANY OF THE EXCEPTIONS MENTIONED IN THE ABOVE CIRCULAR. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST OCTOBER, 2019 SD/- SD/- ( A. MOHAN ALANKAMONY ) ( P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 1 ST OCTOBER, 2019 TNMM I.T.A. NO.2239/HYD/2018 :- 3 -: COPY TO : 1. THE INCOME TAX OFFICER, WARD-4(3), HYDERABAD. 2. SRI SRINIVASU RAJU BOLLPALLY, H.NO.2-3-647/A/188 , NEW PREMNAGAR, AMBERPET, HYDERABAD. 3. CIT (APPEALS)-1, HYDERABAD. 4. PR.CIT-1, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.