ITO, Suryapet V. M/s Bommili Narayana Sons, Suryapet

ITA 278/HYD/2007

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59143 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2012
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 07-03-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 15-02-2007
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B V PRASAD REDDY
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Principle of natural justice; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER. ITA NO.278/HYD/2007 (ASSESSMENT YEAR 2003-04) INCOME - TAX OFFICER, SURYAPET. V/S. M/S. BOMMIDI NARAYANA AND SONS, SURYAPET. (PAN-GIR NO. SB 0547 ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.V.PRASAD REDDY RESPONDENT BY : SHRI M.V.ANIL KUMAR DATE OF HEARING 9. 1.2012 DATE OF PRONOUNCEMENT 9.1.2012 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-VI. HYDERABAD D ATED 2.11.2006, FOR THE ASSESSMENT YEAR 2003-04. 2. THOUGH ELABORATE GROUNDS NUMBERING TO AS MANY A S 10 HAVE BEEN RAISED BY THE REVENUE IN THIS APPEAL, EFFECTIV E GRIEVANCE OF THE REVENUE IN THIS APPEAL RELATES TO DELETION OF ADDIT IONS OF RS.4 LAKHS AND RS.3.40 LAKHS MADE BY THE ASSESSING OFFICER UNDER S .68 OF THE ACT AND OF RS. 9 LAKHS AND RS.1.60 LAKHS AND RS.1.70 LAKHS MAD E BY THE ASSESSING OFFICER UNDER S.69 OF THE ACT, WHICH HAVE BEEN DELE TED BY THE CIT(A) BY THE IMPUGNED ORDER. 3. AT THE OUTSET, WE MAY NOTE THAT THE PRELIMINARY OBJECTION OF THE REVENUE, COVERED BY GROUNDS OF APPEAL NO.1 AND 2 OF THIS APPEAL, IS AGAINST VIOLATION OF RULE 46A(3) OF THE INCOME TAX RULES, BY THE CIT(A). IT ITA NO.278/HYD/2007 M/S. BOMMIDI NARAYANA AND SONS, SURYAPET. 2 IS THE CONTENTION OF THE LEARNED DEPARTMENTAL REPRE SENTATIVE THAT THE CIT(A) HAS ADMITTED ADDITIONAL EVIDENCE SUCH AS ACC OUNT BOOKS OF SISTER CONCERN AND RENDERED HIS DECISION ON THAT BASIS WIT HOUT GIVING MANDATORY OPPORTUNITY TO THE ASSESSING OFFICER TO EXAMINE THE SAME AND OFFER HIS COMMENTS. IT IS ALSO SUBMITTED THAT THE ASSESSING OFFICER HAS MADE A WRITTEN REQUEST BY HIS LETTER DATED 4.10.2006, FOR PERSONAL REPRESENTATION, BUT THE ASSESSING OFFICER HAS NOT ACCEDED TO THE RE QUEST OF THE ASSESSING OFFICER, EVEN THOUGH HE PASSED HIS APPELLATE ORDER ON 2.11.2006, AFTER A LAPSE OF 25 DAYS. IN THIS VIEW OF THE MATTER, HE S UBMITTED THAT THERE WAS CLEAR VIOLATION OF THE PROVISIONS OF RULE 46A OF TH E INCOME-TAX RULES, AND PRINCIPLES OF NATURAL JUSTICE AND AS SUCH, THE IMP UGNED ORDER OF THE CIT(A) IS LIABLE TO BE SET ASIDE. THE LEARNED COUNSEL FOR THE ASSESSEE THOUGH COULD NOT CONTROVERT THE SUBMISSIONS OF THE LEARNED DEPAR TMENTAL REPRESENTATIVE, STRONGLY SUPPORTED THE ORDER OF THE CIT(A) ON ITS MERITS. 4. CONSIDERING TOTALITY OF FACTS AND CIRCUMSTANCE S OF THE CASE, WE FIND MERIT IN THE PRELIMINARY CONTENTIONS OF THE RE VENUE IN THIS APPEAL, IN AS MUCH AS THERE WAS VIOLATION OF THE PROVISIONS OF RU LE 46A(3) AND PRINCIPLES OF NATURAL JUSTICE BY THE CIT(A) WHILE DISPOSING OF THE FIRST APPEAL OF THE ASSESSEE BEFORE HIM. WE ACCORDINGLY, SET ASIDE TH E IMPUGNED ORDER OF THE CIT(A), AND RESTORE THE MATTER TO THE FILE OF THE C IT(A), WITH A DIRECTION TO DECIDE THE SAME AFRESH IN ACCORDANCE WITH LAW AND A FTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, AND ALSO TO THE ASSESSING OFFICER TO PUT FORTH HIS COMMENTS IN THE LIGHT OF THE ADDITION AL EVIDENCE AND ON OTHER ASPECTS, AS DESIRED BY HIM BEFORE THE CIT(A). 5. IN VIEW OF OUR DECISION ON THE PRELIMINARY CONT ENTIONS OF THE REVENUE, AS CONTAINED IN GROUNDS NO.1 AND 2 OF THIS APPEAL, WE ARE NOT INCLINED TO GO INTO OTHER GROUNDS OF THIS APPEAL. ITA NO.278/HYD/2007 M/S. BOMMIDI NARAYANA AND SONS, SURYAPET. 3 6. IN THE RESULT, REVENUES APPEAL IS PARTLY ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 9.1.2012 SD/- SD/- (ASHA VIJAYARAGHAVAN) (CHANDRA POOJARI) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DATED 09 JANUARY, 2012 COPY FORWARDED TO: 1. M/S. BOMMIDI NARAYANA AND SONS, AGRICULTURAL MARKET YARD, SURYAPET. 2. INCOME - TAX OFFICER, SURYAPET. 3. CIT (A) - V I , HYDERABAD. 4. COMMISSIONER OF INCOME - TAX V, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S