Buildmate Projects Private Limited , Hyderabad V. Income Tax Officer, Ward-1(3), Hyderabad

ITA 266/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9758 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 01-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Keywords: Rectification of order; Opportunity of being heard; Tax effect; Revised return; Capital expenditure; TDS; Set aside
• Section: 37; 154; 43B; 143(3); 37(1); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI MOHAN ALANKAMONY , ACCOUNTANT MEMBER ITA NO. 266 /HYD./201 9 ASSESSMENT YEAR: 20 15 - 16 BUILDMATE PROJECTS P. LTD. VS. ITO, WARD 1(3) SY.NO.60 - 62, GUNDLAPOCHAMPALLY HYDERABAD VILLAGE MEDCHEL, R.R. DIST. HYDERABAD 14 (APPELLANT) (RESPONDENT) FOR ASSESSE : SH. SAMUEL NAGADESI, A.R. FOR REVENUE : S H. NILANJAN DEY, D.R. DATE OF HEARING : 19 /0 9 /19 DATE OF PRONOUNCEMENT : 27 / 0 9 /19 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR A.Y. 2015 - 16 AGAINST ORDER OF CIT(A) - 1, HYDERABAD DATED 22.01.2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY , ENGAGED IN THE BUSINESS OF MANUFACTUR ING OF C EMENT BLOCKS , F ILED ITS RETURN OF INCOME FOR THE A.Y. 2015 - 16 ORIGINALLY ON 30 .9.2015 ADMITTING INCOME OF RS.2,57,75,938/ - . LATER, THE ASSESSEE FILED ITS REVISED RETURN OF INCOME ON 18.4.2016 ADMITTING THE SAME INCOME. THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY THRO UGH CASS AND DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE I.T.ACT, 1961 (THE ACT), THE AO DISALLOWED REMITTANCES OF EMPLOYEES CONTRIBUTION TO PF AND ESI U/S 36(1)(VA) OF THE ACT. HE ALSO DISALLOWED A SUM OF RS.13,133/ - BEING INTEREST ON TDS WHIC H IS NOT ALLOWABLE AS EXPENDITURE AND RS.2,61,593/ - BEING ROC CHARGES INCURRED IN CONNECTION WITH IN CREASE IN AUTHORISED SHARE CAPITAL U/S 37(1) OF THE ACT TREATING IT AS CAPITAL EXPENDITURE. HE ALSO DISALLOWED TAXES NOT PAID BEFORE THE DUE DATE U/S 43B OF THE ACT. ITA NO.266/HYD/2019 AY: 2015 - 16 M/S BUILDMATE PROJECTS P LTD., HYD. 2 SUBSEQUENTLY RECTIFICATION ORDER U/S 154 OF THE ACT WAS ALSO PASSED GIVING CREDIT FOR TDS CLAIMED IN THE REVISED RETURN OF THE ASSESSEE . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WHO DISMISSED ASSESSEES APPEAL ONLY FOR THE REASON THAT THE ASSESSEE DID NOT APPEAR ON THE DATES FIXED FOR HEARING AND PARTICULARLY ON 21.1.201 9 . 3. AGGRIEVE D THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL. 1. GENERAL. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE IN CONFIRMING THE DISALLOWANCE U/S 36(1)(VA) : TAX EFFECT : RS.1,71,273/ - . 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE IN CONFIRMING THE DISALLOWANCE U/S 3 7 (1) : TAX EFFECT : RS. 89,135 / - . 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE IN CONFIRMING THE DISALLOWANCE U/S 43B : TAX EFFECT : RS. 7,47,293 / - . TOTAL TAX EFFECT: RS. 10,07,701/ - . 4. HAVING REGARD TO RIVAL CONTENTIONS AND MATERI AL PLACED ON RECORD, WE FIND THAT THE CIT(A) HAS DISMISSED ASSESSEES APPEAL IN LIMINI AND HAS NOT DECIDED THE CASE ON MERITS. THE CIT(A) CAN NOT DISMISS ASSESSEE S APPEAL FOR NON - APPEARANCE OF THE ASSESSEE AS HELD BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. PREM KUMAR ARJUNDAS LUTHRA (HUF) (2016) 240 TAXMAN 133 . 4. 1. IN VIEW OF THE SAME, THE APPEAL IS SET ASIDE TO THE FILE OF CIT(A) WITH A DIRECTION TO DISPOSE OF THE ASSESSEES APPEAL ON MERITS AFTER GIV ING ASSESSEE A FAIR AND REASONABLE OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER, 2019. SD/ - SD/ - (A. MOHAN ALANKAMONY) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH SEPTEMBER , 2019 *GMV ITA NO.266/HYD/2019 AY: 2015 - 16 M/S BUILDMATE PROJECTS P LTD., HYD. 3 COPY TO: - 1) M/S BUILDMATE PROJECTS INDIA P LTD., SURVEY NO.60 - 62, NH 7, GUNDLAPOCHAMPALLY, MEDCHAL MANDAL, HY DERABAD 500 0 1 4. 2) ITO, WARD 1(3), HYDERABAD. 3) THE PR . CIT - 1, HYDERABAD 4) THE ACIT, RANGE 1, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE CIT(A - 1, HYDERABAD ITA NO.266/HYD/2019 AY: 2015 - 16 M/S BUILDMATE PROJECTS P LTD., HYD. 4 1. DRAFT DICTATED ON 19.9.19 2. DRAFT PLACED BEFORE AUTHOR 25.9.19 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR.P.S./PS 6. KEPT FOR PRONOUNCEMENT ON ORDER UPLOADED ON: 27.9.19 7. FILE SENT TO THE BENCH CLERK 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER