Jayadarshini Housing (P) Ltd., Hyderabad, Hyderabad V. DCIT, Circle-2(2), Hyderabad, Hyderabad

ITA 269/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91737 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 18-03-2015
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: S RAMA RAO
• Keywords: Condonation of delay
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I.T.A. NO. 269/HYD/2015 ASSESSMENT YEAR: 2011-12 JAYADARSINI HOUSING PVT. LIMITED, HYDERABAD [PAN: AAACJ5050E] VS DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO , AR FOR REVENUE : S HRI RAMA KRISHNA, BANDI, DR DATE OF HEARING : 0 3 - 0 6 - 201 5 DATE OF PRONOUNCEMENT : 19 - 0 6 - 2015 O R D E R PER INTURI RAMA RAO, A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-2, HYDERABAD, DATED 26-12-2014 FOR THE ASSESSMENT YEAR (AY) 2011-12, RAISING THE FOLLOWING GROUNDS OF APPEAL: '1) THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS BO TH ON FACTS AND IN LAW. 2) THE LEARNED CIT(A) ERRED IN CONFIRMING THE ASS ESSMENT MADE U/S. 143(3) RWS 144 OF THE I.T.ACT. 3) THE LEARNED CIT(A) OUGHT TO HAVE SEEN THAT THER E IS NO REQUIREMENT FOR THE ASSESSING OFFICER TO MAKE THE ASSESSMENT U /S. 144 OF THE I.T.ACT. I.T.A. NO. 269/HYD/2015 JAYADARSINI HOUSING PVT LTD., :- 2 -: 4) THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTI ON OF THE ASSESSING OFFICER IN RESORTING TO ESTIMATION OF INCOME AT 15% OF THE TURNOVER AND FURTHER ERRED IN CONFIRMING THE DETERMINATION OF TOTAL INCOME AT RS. 2,72,83,320/- AS AGAINST THE INCOME ADMITTED OF RS. 31,43,390/-. 5) ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED A T THE TIME OF HEARING. 2. THE BRIEF FACTS OF THE CASE ARE THAT, THE APPELL ANT IS A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956. IT IS ENGAGED IN THE BUSINESS OF PURCHASE AND SALE OF PLO TS AND CONSTRUCTION ACTIVITIES. FOR THE ASSESSMENT YEAR UNDER CONSIDER ATION, THE APPELLANT FILED THE RETURN OF INCOME ON 07-11-2011 ADMITTING AN INCOME OF RS. 31,43,390/-. SUBSEQUENTLY, THE CASE WAS TAKEN UP FO R SCRUTINY ASSESSMENT. DURING THE COURSE OF SCRUTINY ASSESSME NT, ASSESSING OFFICER (AO) WAS OF THE OPINION THAT THE ASSESSEE C OULD NOT PRODUCE THE BILLS AND VOUCHERS IN SUPPORT OF THE EXPENSES CLAIM ED. THEREFORE, THE AO ESTIMATED THE PROFIT AT 15% ON THE GROSS RECEIPT S U/S. 144 OF THE INCOME TAX ACT, 1961 (ACT) AND COMPLETED THE ASSESS MENT U/S. 143(3) R.W.S. 144 OF THE ACT VIDE ORDER DT. 01-03-2014 AT A TOTAL INCOME OF RS. 2,72,83,315/-. BEING AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO VIDE ORDER DT. 26-12-2014 DISMISSED THE APPEAL BY HOLDING THAT THE APPELLANT COULD NOT SUBSTANTIALLY STATE AS TO HOW THE BASIC FACTUAL DETAILS WHICH WERE SOUGHT BY THE AO WERE NO T FURNISHED. 3. THERE WAS A DELAY OF 22 DAYS IN FILING THE PRESE NT APPEAL. THE APPELLANT FILED PETITION FOR CONDONATION OF DELAY S TATING THAT THE MANAGING DIRECTOR OF APPELLANT-COMPANY WAS NOT ATTE NDING THE OFFICE OWING TO ILLNESS OF HIS FATHER. SUBSEQUENTLY, DIED ON 23-03-2015. CERTIFICATE WAS ALSO FILED. THE ORDER OF CIT(A) WA S SERVED IN THE OFFICE IN HIS ABSENCE COULD NOT BE ATTENDED IN THE ABSENCE OF ANY RESPONSIBLE OFFICE OF THE COMPANY. WHEN THE MATTER CAME TO THE NOTICE OF THE MANAGING DIRECTOR ON 15-03-2015, THE MANAGING DIREC TOR OF THE I.T.A. NO. 269/HYD/2015 JAYADARSINI HOUSING PVT LTD., :- 3 -: APPELLANT-COMPANY IMMEDIATELY INITIATED THE STEPS F OR PREPARATION OF APPEAL AND FINALLY APPEAL WAS FILED ON 18-03-2015 A ND THEREFORE, IT IS PRAYED THAT THE DELAY MAY BE CONDONED IN THE INTERE ST OF JUSTICE. THE LD. DR HAD NO SERIOUS OBJECTION FOR CONDONATION OF DELAY. HENCE, WE CONDONE THE DELAY. 4. NOW, WE SHALL DEAL WITH THE MERITS OF THE AP PEAL FILED. THE MAIN CONTENTION OF THE APPELLANT-COMPANY IS THAT THE CIT (A) SHOULD NOT HAVE CONFIRMED THE EXPARTE ASSESSMENT PASSED U/S. 144 OF THE ACT. A SHORT PRAYER BEFORE US BY THE LD. AR OF THE APPELLANT-COM PANY IS THAT SINCE AN EXPARTE ORDER WAS PASSED BY THE AO FOR NON-PRODUCTI ON OF BOOKS OF ACCOUNTS AND BILLS BEFORE HIM, THE MATTER MAY BE SE NT BACK TO AO. IT WAS EXPLAINED THAT THE APPELLANT COULD NOT PRODUCE THE SAME BECAUSE OF SHIFTING OF THE OFFICE AND THE EMPLOYEES OF THE COM PANY WHO ARE LOOKING AFTER THE ACCOUNT LEAVING THE SERVICES OF THE COMPA NY AND THEREFORE IT IS SUBMITTED THAT A FRESH OPPORTUNITY MAY BE GRANTED T O PRODUCE THE SAME BEFORE THE AO. THE LD.CIT-DR HAD NO SERIOUS OBJECT ION FOR SETTING ASIDE THE CASE FOR FRESH ASSESSMENT. ACCORDINGLY, THE MA TTER IS REMITTED BACK TO THE FILE OF AO FOR DENOVO ASSESSMENT IN ACCORDA NCE WITH THE PROVISIONS OF THE ACT AFTER AFFORDING A DUE OPPORTU NITY OF HEARING TO THE ASSESSEE. 5. ACCORDINGLY, THE APPEAL IS PARTLY ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JUNE, 2015 SD/- SD/- (SAKTIJIT DEY) (INTURI RAMA RAO) JUDICIAL MEMBER ACC OUNTANT MEMBER HYDERABAD, DATED 19 TH JUNE, 2015 TNMM I.T.A. NO. 269/HYD/2015 JAYADARSINI HOUSING PVT LTD., :- 4 -: COPY TO : 1. JAYADARSINI HOUSING PVT LIMITED, D.NO. 8-2-580 & 574/C, FLAT 202, NAJAF APARTMENTS, ROAD-7 & 8, IMAM KHOMEI NI ROAD, BANJARA HILLS, HYDERABAD. C/O. SRI S. RAMA RAO, ADV OCATE, FLAT NO. 102, SHRIYA'S ELEGANCE, 3-6-643, STREET NO . 9, HIMAYATNAGAR, HYDERABAD. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2( 2), HYDERABAD. 3. CIT(APPEALS)-2, HYDERABAD. 4. CIT-2, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.