M/s. Malayagiri Greenlands Pvt.Ltd., Hyderabad V. ACIT, Central Circle-1, Hyderabad

ITA 277/HYD/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3382 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 22-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Keywords: Unexplained investment; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B (SMC), HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.277/HYD/2011 : ASSESSMENT YEAR 2007- 08 M/S. MALAYAGIRI GREENLANDS PVT. LTD. HYDERABAD (PAN AACCM 4810 B) VS ASSTT. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE-I, HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI CHAITANYAKUMAR/ SHRI K.C.DEVADAS RESPONDENT BY : SHRI K.E.SUNIL BABU O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) VII, HYDERA BAD DATED 10.01.2011 FOR THE ASSESSMENT YEAR 2007-08. 2. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPE AL READ AS FOLLOWS- (I) THE ORDER OF THE COMMISSIONER OF INCOME- TAX(APPEALS)-VII HYDERABAD ERRED IN SUSTAINING THE ADDITION OF RS.4,16,843 IS UNSUSTAINABLE BOTH IN FACTS AND IN LAW. (II) THE LEARNED COMMISSIONER OF INCOME- TAX(APPEALS)-VII, HYDERABAD FAILED TO NOTE THAT THE APPELLANT WAS PREVENTED BY REASONABLE AND SUFFICIENT CAUSES IN NOT SUBMITTING THE DETAILS FOR INCREASE IN FIXED ASSETS BY RS.4,16,843 AS ITS BOOKS OF ACCOUNTS WERE UNDER INVESTIGATION BY CNBI AUTHORITIES. (III) THE APPELLANT DENIES ITS LIABILITY TO BE ASSED TO THE LEVY OF INTEREST U/S. 234B. ITA NO.277/H/2011 M/S. MALAYAGIRI GREENLANDS PVT. LTD. HYDERABAD 2 3. I HAVE HEARD THE PARTIES AND PERUSED THE MATER IAL ON RECORD. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE IMPUGNED ADDITION OF RS.4,16,843 ON ACCOUN T OF UNEXPLAINED INVESTMENT, HAS BEEN MADE BY THE ASSESSING OFFICER, ON ACCOUNT OF ASSESSEES INABILITY TO FURNISH NECESSARY EVIDENCE IN SUPPORT OF ITS EXPLANATION. IT IS THE CASE OF THE ASSESSEE THAT T HE ASSESSEE-COMPANY IS ASSOCIATED WITH M/S. SATYAM COMPUTERS, AND ITS B OOKS OF ACCOUNT WERE SEIZED BY THE CENTRAL BUREAU OF INVESTIGATION, AND AS SUCH IT WAS PREVENTED BY A REASONABLE CAUSE FROM SUBSTANTIATING ITS CLAIM WITH REGARD TO THE INVESTMENT MADE, WITH SUPPORTING EVID ENCE. HE THEREFORE, REQUESTED THAT THE MATTER MAY BE SET ASI DE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO RE-EXAMINE TH E MATTER BY GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE TO ADDUCE NE CESSARY EVIDENCE IN SUPPORT OF ITS CASE. THE LEARNED DEPARTMENTAL R EPRESENTATIVE, ON THE OTHER HAND, COULD NOT CONTROVERT THE SUBMISSION S OF THE LEARNED COUNSEL FOR THE ASSESSEE, THOUGH HE SUPPORTED THE O RDERS OF THE LOWER AUTHORITIES. 4. ON CAREFUL CONSIDERATION OF THE RIVAL SUBMISSI ONS, I FIND THAT THE ASSESSEE COULD NOT PROVE ITS CASE WITH NECESSAR Y EVIDENCE, FOR REASONS BEYOND ITS CONTROL, AS ITS BOOKS OF ACCOUNT HAVE BEEN SEIZED BY THE CBI. IN THIS VIEW OF THE MATTER, I AM OF THE C ONSIDERED OPINION THAT ENDS OF JUSTICE WOULD BE MET, IF THE MATTER IS REST ORED TO THE FILE OF THE FOR FRESH EXAMINATION OF THE MATTER IN ACCORDANCE W ITH LAW, AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE TO ADDUCE NE CESSARY EVIDENCE IN SUPPORT OF ITS CASE. ACCORDINGLY, IMPUGNED ORD ERS OF THE LOWER AUTHORITIES ON THE POINT AT ISSUE ARE SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR F RESH EXAMINATION. THE ASSESSING OFFICER MAY SUMMON THE RECORDS, IF NECESS ARY, FROM THE ITA NO.277/H/2011 M/S. MALAYAGIRI GREENLANDS PVT. LTD. HYDERABAD 3 APPROPRIATE AUTHORITIES AND RE-EXAMINE THE MATTER I N ACCORDANCE WITH LAW, AFTER GIVING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED AT THE CONCLUSION OF HEARING ON THE APPEAL ON 25.4.2011 SD/- (CHANDRA POOJARI) A CCOUNTANT MEMBER DATED THE 25TH APRIL,, 2011 COPY FORWARDED TO: 1 . M/S. MALAYAGIRI GREENLANDS PVT. LTD. PLOT NO.80, EROAD NO.9, JUBILEE HILLS, HYDERABAD- 500 033 2. ASSTT. COMMISSIONER OF INCOME - TAX , CENTRAL CIRCLE - 1, HYDERABAD 3. CIT (A) VII , HYDERABAD 4. COMMISSIONER OF INCOME - TAX , CENTRAL CIRCLE, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.