Sri Somepalli Venkateswarlu, Chilakaluripeta V. The ITO, Ward-2(1), Guntur

ITA 25/VIZ/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50291 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-04-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 07-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: TH L PETER
• Assessee Lawyers: N O N E
• Keywords: Principle of natural justice
• Section: 68

Judgement Text

ITA NO25/VIZ/2011 S. VENKATESWARLU, GUNTUR. 1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 25 /VIZAG/ 20 11 ASSESSMENT YEAR : 2007 - 08 SRI SOMEPALLI VENKA TESWARLU CHILAKALURIPETA VS. ITO WARD - 2(1) GUNTUR (APPELLANT) (RESPONDENT) PAN NO.AVDPS7794R APPELLANT BY: N O N E RESPONDENT BY: SHRI TH.L. PETER, CIT(DR) ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PRESENTED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) ON VARIOUS GROUNDS WHICH ARE AS UNDER: 1. THE ORDER OF THE LEARNED CIT(A), GUNTUR PASSED ON 2 4.8.2010 (RECEIVED ON 28.12.2010) IN ITA NO.0236/CIT(A)/GNT/ 09-10, IS ERRONEOUS BOTH IN LAW AND ON FACTS OF THE CASE; 2. THE LEARNED CIT(A) ERRED IN HOLDING A PRIMA-FACIE C ONCLUSION THAT THE APPELLANT FAILED TO PROVE THE CREDITS AS PER TH E INGREDIENTS LAID DOWN BY SEC. 68 OF THE ACT AND WHILE UPHOLDING THE OBSERVATIONS OF THE A.O. THAT THE APPELLANT AND HIS AUTHORISED REPR ESENTATIVE INDULGED IN PRODUCING `FABRICATED MATERIAL SO AS T O PROVE THE GENUINENESS OF THE CREDITS APPEARING IN THE BOOKS O F ACCOUNT; 3. THE LD. CIT(A) FAILED TO NOTICE THAT IN VIEW OF THE VERY SHORT NOTICE AFFORDED TO THE APPELLANT AT THE FAG END OF THE YEA R THERE PREVAILED A SORT OF CONFUSION AS A RESULT OF WHICH THE PRINCI PLES OF NATURAL JUSTICE WERE PATENTLY NOT ADHERED TO IN THE INSTANT CASE; 4. AS COULD BE SEEN FROM THE AOS LETTER DATED 22.6.20 10 ADDRESSED TO THE CIT(A) (VIDE PARA 4 THEREOF) WHEREIN IT WAS REPORTED, AMONG OTHER THINGS, THAT THE APPELLANTS A.R. APPEARED BE FORE HIM ALONG WITH CONFIRMATORY LETTERS SUBSEQUENT TO THE LAST DA TE OF HEARING HELD ON 21.12.2009 AND THE FACT THAT THE CO NFIRMATORY LETTERS WERE AVAILABLE ON THE RECORD OF THE A.O. WI LL STAND BY ITSELF TO TESTIFY THAT ALL THE `CONFIRMATORY LETTERS WERE DULY HANDED OVER BY THE APPELLANTS A.R. TO THE A.O. WELL BEFORE COM PLETION OF THE ASSESSMENT PROCEEDINGS AND THIS FACTUAL POSITION W AS PATENTLY IGNORED BY THE LD. CIT(A); 5. THE FACT THAT THE IMPUGNED ASSESSMENT ORDER WAS GOT SERVED ON THE APPELLANT ONLY ON 16.1.2010 ALSO STAND TO TESTI FY THAT BY THE TIME THAT ASSESSMENT ORDER WAS PASSED FOR THE YEAR UNDER REVIEW, ITA NO25/VIZ/2011 S. VENKATESWARLU, GUNTUR. 2 THE `CONFIRMATORY LETTERS WERE AVAILABLE WITH THE LD. A.O. AND HENCE IT DOES NOT APPEAR REASONABLE TO STATE THAT T HOSE CONFIRMATORY LETTERS WERE FABRICATED AND HANDED OVE R AFTER THE CONCLUSION OF THE ASST. PROCEEDINGS; 6. AS REGARDS THE VARIATIONS IN A FEW CONFIRMATORY LET TERS, THE APPELLANT HAD CHOSEN TO SUBMIT EXPLANATION CASE-WIS E (AS REPRODUCED AT PARA 5.4 OF THE IMPUGNED APPELLATE OR DER) AND HE ALSO SOUGHT FOR HOLDING IN-DEPTH VERIFICATION WITH THE CONCERNED `CREDITORS AND THIS PRAYER WAS NOT CONSIDERED POSI TIVELY; 7. IT DOES NOT APPEAR LAWFUL OR REASONABLE TO REJECT T HE PRAYER OF CAUSING INDEPENDENT VERIFICATION ABOUT THE GENUINEN ESS OF THE CREDITS VIS--VIS THEIR IDENTITY AND CREDITWORTHINE SS AND TO HOLD A `SUMMARY FINDING THAT THE CREDITS ARE NOT PROVED. 2. THIS APPEAL IS LISTED FOR HEARING AND THE ASSESSEE HAS MOVED AN APPLICATION WITH A PERMISSION FOR THE WITHDRAWAL OF THE APPEAL. THE REQUEST OF THE ASSESSEE WAS NOT OBJECTED TO BY THE REVENUE. WE, THEREFORE, ALLOWED THE REQUEST OF THE ASSESSEE AND DISMISS THE APPEAL AS WITHDRAWN. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 12.7.2011 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 12 TH JULY, 2011 COPY TO 1 SOMEPALLI VE NKATESWARLU, PROP: SRI RAVI COTTON TRADERS, 9 - 476, 1 ST LANE, CR NAGAR, CHILAKALURIPETA, GUNTUR DIST. 2 ITO WARD - 2(1), GUNTUR 3 THE CI T, GUNTUR 4 THE CIT (A) , GUNTUR 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM