Chennuri Venkateswarlu , Hyderabad V. Income Tax Officer, Ward-4(1), Hyderabad

ITA 254/Hyd/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8896 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 02-07-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 26-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Keywords: Opportunity of being heard; Revised return; Set aside
• Section: 143(3); 142(1); 143(1); 201; 143(2); 20

Judgement Text

IN T HE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 254 /HYD/201 9 ASSESSMENT YEAR: 20 1 5 - 1 6 CHENNURI VENKATESWARLU, HYDERABAD. PAN A LDPC 9493R VS. INCOME - TAX OFFICER, WARD 4 ( 1 ) , HYDERABAD. ( APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI K.C. DEVDAS REVENUE BY : S HRI NILANJAN DEY DATE OF HEARING : 0 2 / 0 7 /201 9 DATE OF PRONOUNCEMENT : 05 / 0 7 / 201 9 O R D E R PER S . RIFAUR RAHMAN , A .M. : T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 1 , DATED 27 / 1 2 /201 8 , HYDERABAD FOR AY 20 1 5 - 16 . 2. BRIEF FACTS OF THE CASE ARE, THE ASSESSEE DERIVES INCOME FR O M INTEREST, FILED ITS RETURN OF INCOME FOR THE AY 2015 - 16 ON 2 3 /0 3 /201 6 ADMITTING TOTAL INCOME OF RS. 15,76,349 / - AND CLAIMED REFUND OF RS. 13,580/ - . ACCORDINGLY, THE RETURN WAS PROCESSED U/S 143(1) OF THE INCOME - TAX ACT, 1961 ( IN SHORT THE ACT) AND ISSUED REFUND A S CLAIMED BY THE ASSESSEE. SUBSEQUENTLY, ASSESSEE FILED REVISED RETURN OF INCOME ON 30/04/2016 ADMITTING AN INCOME OF RS. 5,75,310/ - AND CLAIMED REFUND OF RS. 2,79,160/ - . ASSESSEE DECLARED LESSER INTEREST INCOME IN THE REVISED RETURN OF INCOME. THE CASE W AS SELECTED FOR SCRUTINY UNDER CASS AND ACCORDINGLY, NOTICES U/S 143(2) AND 142(1) WERE ISSUED AND SERVED ON THE ASSESSEE. 2 ITA NO. 254 /HYD/1 9 CHENNURI VENKATESWARLU, HYD. 2.1 SUBSEQUENTLY, A SHOW CAUSE NOTICE WAS ISSUED ON THE ASSESSEE AND THE ASSESSEE WAS ASKED TO EXPLAIN VARIOUS OBSERVATIONS OF THE AO. IN RESPONSE, ASSESSEE FURNISHED A LETTER ALONG WITH AN AFFIDAVIT, WHICH IS REPRODUCED BELOW: C HENNURI VENKATESHWARL U S/O C HENNURI LACHAIAH AGED ABOUT 68 YEARS R/ O H. NO. 1 - 4 - 880/20/152, FLAT NO.202, II ND FLOOR, PARISHI RESIDENCY, NEW 8AKARAM. GANDHI NAGAR , HYDERABAD - 500020, DO HEREBY SOLEMNLY AFFIRM AND STATE THAT; I AM A AGRICULTURIST, MY AGRICULTURAL LAND WAS ACQUIRED BY THE SI NGARENI COLLIERIES COMPANY LIMITED AND I WAS RECEIVED AN AMOUNT OF RS.31,50,961/ - AS INTEREST. THE SAME INCOME WAS DECLARED UNDER INCOME FROM OTHER SOURCES IN OR I GINA L IT RETURN, THAT WAS ACCEPTED BY THE DEPARTMENT AND REFUND WAS GRANTED. BUT UNFORTUNATELY , TRP WAS FI LE D THE REVISED RETURN WITHOUT MY KNOWLEDGE UNDER MY PAN. TRP WAS MENTIONED MY PAN INSTEAD OF OTHER'S PAN. I REQUEST YOUR OFFICE TO CANCEL THE REVISED RETURN AND DO THE NEEDFUL IN THIS REGARD. 2.2 AFTER CONSIDERING THE INFORMATION CONTAINED IN THE AFFIDAVIT, AO COMPLETED THE ASSESSMENT U/S 143(3) BY MAKING AN ADDITION TOWARDS INTEREST OF RS. 15,78,085/ - ( DIFFERENCE OF INTEREST DECLARED BY THE ASSESSEE IN THE RETURN OF INCOME AND 26AS STATEMENT). 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSE E PREFERRED AN APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ADDITION MADE BY THE AO AND DISMISSED THE APPEAL IN - LIMINE AS THE ASSESSEE FAILED TO APPEAR BEFORE HIM, EVEN THOUGH, SUFFICIENT OPPORTUNITIES PROVIDED TO ASSESSEE. 4. AGGRIEVED WITH THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE HON'BLE CIT(A) IS ERRONEOUS IN LAW AS WELL AS FACTS OF THE CASE. 3 ITA NO. 254 /HYD/1 9 CHENNURI VENKATESWARLU, HYD. 2. THE HON'BLE CIT(A) WITHOUT ALLOWI NG PROPER OPPORTUNITY TO THE ASSESSEE DISMISSED THE SAME AND THEREFORE THE SAME IS LIABLE TO BE SET ASIDE. 3. THE HON'BLE CIT(A) HAVING NOTICED THAT THE INTEREST INCOME OF RS.31,52,697/ - 'INTEREST ON COMPENSATION' OUGHT TO HAVE DIRECTED THE ASSESSING OFFIC ER TO ALLOW DEDUCTION OF 50% OF THE SAID AMOUNT AS LAID DOWN U/S.57(IV) OF THE IT ACT. 4. ANY OTHER GROUND WILL BE RAISED AT THE TIME OF HEARING. 5. BEFORE US, LD. AR OF THE ASSESSEE SUBMITTED FACTS OF THE CASE AND REFERRED TO THE AFFIDAVIT FILED BY T HE ASSESSEE BEFORE THE AO AND SUBMITTED THAT THE MISTAKE COMMITTED BY TAX RETURN PREPARER (TRP) I.E. TAX RETURN FILED BY TRP IS OF SOME OTHER PERSON, BUT, BY MISTAKE HE USED THE PAN OF ASSESSEE AND FILED THE SAME. FURTHER, HE SUBMITTED THAT ASSESSEE HAS RE CEIVED INTEREST ON COMPENSATION FROM M/S SINGARENI COLLIERIES COMPANY LTD., TO THE EXTENT OF RS. 31,52,697/ - . HE BROUGHT TO OUR NOTICE THE ORIGINAL RETURN OF INCOME FILED BY THE ASSESSEE, IN WHICH, ASSESSEE HAS DECLARED THE TOTAL INTEREST INCOME AND CLAIME D DEDUCTION U/S 57 I.E. 50% OF THE GROSS INTEREST INCOME AS DEDUCTION AND DECLARED BALANCE INTEREST INCOME. THIS FACT WAS VERY MUCH BEFORE THE AO AND CIT(A). HE PRAYED THAT THE ADDITION MAY BE DELETED. 6. ON THE OTHER HAND, LD. DR RELIED ON THE ORDERS OF REVENUE AUTHORITIES. 7. CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL ON RECORD. BASED ON THE INFORMATION SUBMITTED BEFORE US, IT IS NOTICED THAT ASSESSEE HAS IN RECEIPT OF INTEREST ARREARS ON ADDITIONAL COMPENSATION RECEIVED FROM M/S SINGARENI COLLIERIES LTD. ACCORDINGLY, HE HAS DECLARED THE SAME IN ITS ORIGINAL RETURN OF INCOME. HOWEVER, DUE TO SOME REASONS, AS MENTIONED IN THE AFFIDAVIT, HIS TRP HAS FILED REVISED RETURN OF INCOME. AS PER THE AFFIDAVIT FILED BY THE ASSESSEE, HIS REVI SED RETURN OF INCOME WAS FILED WITHOUT HIS KNOWLEDGE. CONSIDERING THE PECULIAR FACTS ON RECORD, WE ARE INCLINED TO REMIT THIS 4 ITA NO. 254 /HYD/1 9 CHENNURI VENKATESWARLU, HYD. ISSUE TO THE FILE OF AO TO VERIFY THE CLAIM OF ASSESSEE WITH REGARD TO REVISED RETURN OF INCOME AND BY CONSIDERING THE AFFIDAVIT, HE MAY VERIFY AND DECIDE THE MATTER IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IT IS PERTINENT TO MENTION THAT IN CASE ASSESSEE HAS RECEIVED THE INTEREST COMPENSATION FROM M/S SINGARENI COLLIERIES COMPANY LTD., THEN DEDUCTION U/S 57 SHOULD BE ALLOWED AS PER LAW. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 5 TH JULY , 201 9 . SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 5 TH JULY , 201 9 KV C OPY TO: - 1) SHRI CHENNURI VENKATESWARLU, NO. 1 - 4 - 880/20/152, PLOT NO. 202, 2 ND FLOOR, NEW BAKARAM, GANDHI NAGAR, HYDERABAD 500 0380 . 2) ITO, WARD 4 ( 1 ) , HYDERABAD 3) CIT(A) 1 HYDERABAD. 4) PR. CIT - 1 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE