Income Tax Officer, Ward-3(2), Hyderabad V. Rachnoutsav Events Private Limited , Hyderabad

ITA 2270/Hyd/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0142 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 06-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Keywords: Unexplained cash credit; Unexplained expenditure
• Section: 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 2270 /HYD/2018 (ASSESSMENT YEAR : 201 3 - 14 ) INCOME TAX OFFICER, WARD 3(2), HYDERABAD. VS. M/S. RACHNOUTSAV EVENTS PVT. LTD., PLOT NO.10, PAVANI VILLAS, DWARAKAPURI COLONY, PUNJAGUTTA, HYDERABAD - 500 082 PAN AADCR 5438F APPELLANT RESPONDENT APPELLANT BY : SHRI ROHIT MAJUMDAR (D.R) RESPONDENT BY : NONE. DATE OF HEARING : 1 5.02.2021 . DATE OF PRONOUNCEMENT : 15.03 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS R EVENUES APPEAL FOR THE ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 3 , HYDERABAD ORDER DT. 17.09.2018 PASSED IN CASE NO. 0072/ITO - 3(2)/HYD/CIT(A) - 3/2016 - 17 IN THE PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). NO NE APPEARED AT ASSESSEE'S BEHEST. IT IS ACCORDINGLY PROCEEDED EXPARTE. CASE FILE PERUSED. 2. THE R EVENUE HAS PROPOSED THE FOLLOWING TWIN GROUNDS IN THIS APPEAL. 2 ITA NO. 2270/HYD/2018 2. THE LD. CIT(A)ERRED IN DELETING THE ADDITION MADE AT RS.1,18,99,180 TOWARDS UNEXPLAINED CASH CREDITS IGNORING THE FACT THAT THE ASSESSEE FAILED TO DISCHARGE ITS ONUS OF PROVING THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS. 3. THE LD. CIT(A) FAILED TO RECOGNIZE THE FACT THAT THE ASSESSEE IS CLAIMING IN ITS BOOKS EX INCURRED FOR ANOTHER COMPANY THEREBY ERRED IN DELETING THE ADDITION MADE AT RS.1,59,54,910 TOWARDS EXPENDITURE WHICH DOES NOT PERTAIN TO THE ASSESSEE. 3. MR. MAJUMDAR VEHEMENTLY ARGUED DURING THE COURSE OF HEARING THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING BOTH THE DISALLOWANCES / ADDITIONS OF UNEXPLAINED CASH CREDIT AND UNEXPLAINED EXPENDITURE; RESPECTIVELY. THIS ARGUMENT COMING FROM THE R EVENUES SIDE IS FOUND TO BE OF NO MERIT SINCE THE ASSESSING OFFIC ER HAS HIMSELF SUBMITTED A REMAND REPORT ON 1.8.2018 BEFORE THE CIT(A) THAT THESE TWO ADDITIONS INVOLVING SUMS OF RS.1,18,99,180 AND RS.1,59,54,910 DESERVE TO BE DELETED. C ASE LAW CIT VS. D.M. PURNESH (2020) 426 ITR 169 (KAR) AND SMT. B. JAYALAKSHMI VS. A CIT (2018) 96 TAXMAN.COM 486 (MAD) HOLD THAT THE R EVENUE CANNOT BE HELD AS AN AGGRIEVED PARTY ONCE THE ASSESSING OFFICER HIMSELF HAS AGREED TO THE TAX PAYE RS SUBMISSION IN REMAND REPORT. WE THUS DECLINE BOTH THE R EVENUES SUBSTANTIVE GROUNDS FOR THIS P RECISE REASON ALONE . 4. THIS R EVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 .03. 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER * REDDY GP 3 ITA NO. 2270/HYD/2018 COPY TO : 1. INCOME TAX OFFICER, WARD 3(2), HYDERABAD. 2. M/S. RACHNOUTSAV EVENTS PVT. LTD., PLOT NO.10, PAVANI VILLAS, DWARAKAPURI COLONY, PUNJAGUTTA, HYDERABAD - 500 082 3. P_R. C I T - 3, HYDERABAD. 4. CIT(APPEALS) - 3, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.