3K Technologies Ltd., Hyderabad V. ITO,Ward 2(2), Hyderabad

ITA 283/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87299 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-02-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 25-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G APARNA RAO
• Assessee Lawyers: P MURALI MOHAN
• Keywords: Source of fund
• Section: 143(3); 234B

Judgement Text

ITA NO.283 OF 2014 3K TECHNOLOGIES LTD HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT.ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 283/HYD/2014 (ASSESSMENT YEAR: 2010-11) M/S. 3K TECHNOLOGIES LTD HYDERABAD PAN: AAACZ 2607 F VS. INCOME TAX OFFICER WARD-2(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHAN, CA DEPARTMENT BY: SMT. G. APARNA RAO , (DR) DATE OF HEARING: 10/02/2015 DATE OF PRONOUNCEMENT: 18/02/2015 O R D E R PER SMT. ASHA VIJAYARAGHAVAN, J.M. THIS APPEAL FILED AT THE INSTANCE OF THE ASSESSEE I S DIRECTED AGAINST THE ORDER OF THE CIT (A)-III HYDERABAD DATE D 26.12.2013 PASSED FOR A.Y 2010-11 U/S 143(3) OF THE I.T. ACT. 2. BRIEFLY STATED, THE ASSESSEE 3K TECHNOLOGIES LTD IS A COMPANY ENGAGED IN THE ACTIVITY OF SOFTWARE DEVELOP MENT AND HAS FILED ITS RETURN OF INCOME FOR THE A.Y 2010-11 ON 15.10.2010 DECLARING AN INCOME OF RS. NIL AND THE INCOME OF RS .2,53,53,010 U/S 115JB. THE RETURN OF INCOME WAS PROCESSED ON 14 .04.2011 U/S 143(1). THE CASE WAS SELECTED FOR SCRUTINY AND NOTICES U/S 143(2) DATED 24.08.2010 WAS ISSUED AND DULY CERTIFI ED ON THE ASSESSEE COMPANY. THE ASSESSMENT WAS COMPLETED BY A DDING AN AMOUNT OF RS.89,91,84,458 TO THE RETURNED INCOME. A GGRIEVED, ITA NO.283 OF 2014 3K TECHNOLOGIES LTD HYDERABAD PAGE 2 OF 4 THE ASSESSEE RAISED A DEMAND OF RS.24,57,55,338 TOW ARDS THE INCOME TAX, RS.2,45,75,534 TOWARDS SURCHARGE, RS.81 ,09,926 TOWARDS EDUCATION CESS AND INTEREST U/S 234B AND 23 4C OF RS.10,02,38,688 AND RS.1,97,813 RESPECTIVELY. AO HA S TREATED THE ENTIRE RECEIPTS RECORDED IN THE P&L A/C AS ASSE SSEES OTHER SOURCES OF INCOME, WITHOUT ALLOWING THE EXPENDITURE . 3. AGGRIEVED, ASSESSEE FILED APPEAL BEFORE THE CIT (A). THE CIT (A) HELD AS FOLLOWS: 4. IN THIS CASE, EVEN THOUGH THE APPEAL IS FILED I N TIME, HOWEVER, AS CERTIFIED BY THE AO VIDE HIS LETT ER F NO.ITO-2(2)/APPEALS/MISC/2013-14,DATED 17.12.13, THE APPELLANT HAS NOT PAID ADMITTED TAX. FOLLOWING LINE IS WRITTEN IN THE REPORT OF THE AO. THE ASSESSEE NOT PAID ADMITTED TAX 4. SECTION 249 OF THE INCOME TAX WAS REPRODUCED BY THE AO. 5. THE LD CIT (A) HELD AFTER GOING THROUGH SECTION 249 THAT IT IS CLEAR THAT THE CASE OF THE ASSESSEE FALLS WITHIN SU B SECTION OF SECTION 249. THE CIT (A) FURTHER HELD THAT NO APPLI CATION HAS BEEN MADE FOR CONDONATION OF THE FACT THAT ADMITTED TAX WAS NOT PAID AND THEREFORE, THE APPEAL IS NOT VALID IN THE EYES OF LAW AND CANNOT BE ADMITTED. 6. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. THE LD COUNSEL FOR THE ASSESSEE SHRI MURALI MOHAN STATED B EFORE US THAT THE CIT (A) HAD NOT VERIFIED WHETHER ADMITTED TAX HAS BEEN PAID AND THAT THE FACT IS THAT ASSESSEE HAS PAID TA XES TILL THE FILING OF THE APPEAL. THE LD COUNSEL FILED PAPER BO OK SHOWING THE PAYMENT OF TAXES AS FOLLOWS: ITA NO.283 OF 2014 3K TECHNOLOGIES LTD HYDERABAD PAGE 3 OF 4 STATEMENT SHOWING SELF ASSESSMENT TAXES PAID AS PER FORM 26AS S.NO DATE CHALLAN NO. AMOUNT (RS.) 1 14.03.2011 00255 8,70,000 2 29.03.2011 00368 2,00,000 3 29.03.2011 00369 5,00,000 4 30.03.2011 00337 2,00,000 5 30.03.2011 00338 5,00,000 6 31.03.2011 00375 3,00,000 7 3 1.03.2011 00376 2,00,000 8 27.04.2011 00174 20,57,940 TAXES PAID TILL THE DATE OF FILING OF APPEAL I.E 18.04.2013 49,77,940 7. HE ALSO PRODUCED COPY OF FORM 26AS AND COPY OF ACKNOWLEDGEMENT OF ITR FOR A.Y 2010-11 AT PAGE NO.5 . 8. WE HAVE PERUSED THE DETAILS POINTED OUT BY THE L D COUNSEL FOR THE ASSESSEE AND FIND THAT THE PAYMENT OF TAX B EFORE THE DUE DATE ARE SUPPORTED BY CHALLANS. WE ARE SURPRISED TO NOTE THAT AO HAS NOT EVEN GIVEN CREDIT TO THE TAXES PAID BEFORE COMPLETION OF ASSESSMENT, VIDE ORDER DATED 31.03.2013. LD CIT (A) ALSO FAILED TO GIVE AN OPPORTUNITY TO EXPLAIN BEFORE DISMISSING THE APPEAL. IN THESE CIRCUMSTANCES, WE RESTORE THE APPEAL TO THE F ILE OF THE CIT (A) FOR FRESH EXAMINATION OF THE ABOVE FACTS AND TO CONSIDE R ON MERITS OF THE ITA NO.283 OF 2014 3K TECHNOLOGIES LTD HYDERABAD PAGE 4 OF 4 CASE, AFTER GIVING AN OPPORTUNITY TO THE ASSESSEE T O PRESENT ITS CASE. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH FEBRUARY, 2015. S D/ - S D/ - (B. RAMAKOTAIAH) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 18 TH FEBRUARY, 2015. VNODAN/SPS COPY TO: 1. P. MURALI & CO. C.AS, 6-3-655/2/3 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500028 2. INCOME TAX OFFICER WARD-2(2) HYDERABAD 3. THE CIT(A)-III HYDERABAD 4. THE CIT II HYDERBAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER