Ravi Foods Private Limited , Hyderabad V. Dy. Commissioner of Income Tax, Central Circle-1(3), Hyderabad

ITA 301/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0827 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 23-06-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 12-06-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAVI KIRAN
• Keywords: Revision of order; Assessment record; TDS
• Section: 263; 142(1); 153A; 20

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.301/HYD/2020 A.Y. 2015 - 16 RAVI FOODS PVT LTD., HYDERABAD. PAN: AAACR 9647 P VS. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL WING, CENTRAL CIRCLE - 1(3), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI H. SRINIVASULU REVENUE BY SHRI RAVI KIRAN, CIT - DR DATE OF HEARING: 23/06/2021 DATE OF PRONOUNCEMENT: 08 /07/2021 ORDER PER A. MOHAN ALANKAMONY , A.M: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. PCIT / CIT (CENTRAL), HYDERABAD IN DIN & LETTER NO. ITBA/COM/F/17/2019 - 20/1026883204(1), DATED 24/03/2020 PASSED U/S. 263 OF THE ACT FOR THE A.Y. 2015 - 16. 2. THE ASSESSEE HAS RAISED TWELVE GROUNDS IN ITS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE ORDER U/S 263 OF THE INCOME TAX ACT, 1961 ('THE ACT') PASSED BY THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), HYDERABAD ('LEARNED PRO CIT') IS BAD IN LAW. 2. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PRO CIT DID NOT VERIFY THE ASSESSMENT RECORDS BEFORE PASSING THE ORDER U/S 263 OF THE ACT. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PRO CIT ERRED IN INVOKING THE PROVISIONS OF SECTION 263 OF THE ACT AS TWIN CONDITIONS STIPULATED THEREIN WERE NOT FULFILLED. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PRO CIT FAILED TO APPRECIATE THAT THE LEARNED DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(3), HYDERABAD ('LEARNED AO') VIDE NOTICE DATED 04 JANUARY 2017 U/S 142(1) OF THE ACT HAD CAUSED VERIFICATION & ENQUIRY ON THE SAM E ISSUES AS LISTED OR SPECIFIED IN THE NOTICE DATED 23 JANUARY 2020 OF THE LEARNED PRO CIT U/S 263 OF THE ACT. 5. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PRO CIT ERRED IN REVIEWING THE ORDER OF THE LEARNED AO DESPITE THE FACT THAT NECESSARY VERIFICATION WAS MADE DURING THE ASSESSMENT PROCEEDINGS SPECIFICALLY WITH REFERENCE TO THE ISSUES SPECIFIED IN THE ORDER U/S 263 OF THE ACT. 6. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PRO CIT ERRED IN NOT CONSIDERING THE REPLY DATED 05 FEBRUARY 2020 FILED BY THE APPELLANT BEFORE THE LEARNED PRO CIT. 7. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PR. CIT ERRED IN DIRECTING THE LEARNED AO TO VERITY THE ISSUES LISTED AT PARA 2 OF THE ORDER U/S 263 OF THE ACT DESPITE THE FACT THAT THERE IS NO INCRIMINATING MATERIAL WAS FOUND FOR THE ASSESSMENT YEAR 2015 - 16 & THE LEARNED AO LACKS JURISDICTION TO MAKE THE ASSESSMENT U/S 153A OF THE ACT. 8. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PR. CIT FAILED TO APPRECIATE THAT INCREASE IN CONVERSION CHARGES WAS VERIFIED BY THE LEARNED AO AND AFTER ENQUIRY & VERIFICATION OF BILLS, CONVERSION CHARGES PAID WERE ALLOWED. THE ASSESSMENT ORDER WAS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF REVENUE. 3 9. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PR. CIT FAILED TO APPRECIATE THAT THE RATES OF TDS DEPEND ON THE NAT URE OF PAYMENTS SUCH AS SALARY, RENT, CONTRACTUAL PAYMENTS, PROFESSIONAL CHARGES ETC. THE LEARNED AO HAD VERIFIED THE TDS DETAILS AND THE TDS RETURNS WERE ACCEPTED BY THE DEPARTMENT. THE LEARNED AO HAD VERIFIED THE ISSUE DURING THE ASSESSMENT PROCEEDINGS. 10. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PR. CIT ERRED IN OBSERVING THAT HUGE FOREIGN EXCHANGE PURCHASES OF RS. 6.58 CRORES WERE THERE AND SUCH TRANSACTIONS WERE NOT THERE IN EARLIER PREVIOUS YEARS WITHOUT CONSIDERING THE MATERIAL ON RECORD. THE LEARNED AO VERIFIED THE ISSUE DURING THE ASSESSMENT PROCEEDINGS AND COMPLETE DETAILS WERE FURNISHED AND SUCH DETAILS WERE EXAMINED. 11. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PR. CIT FAILED IN CONSIDERATION OF THE EXPLANATION OF THE ASSESSMENT PROCEEDINGS VIDE LETTER DATED 04 JANUARY 2017 AND AFTER VERIFICATION CLAIM OF THE APPELLANT WAS ACCEPTED. 12. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN CONTRARY TO LAW, THE LEARNED PR. CIT ERRED IN OBSERVING THAT NO EXPLANATION WAS CALLED FOR VARIOUS EXPENSES. ALL THE EXPENSES DETAILS WERE FURNISHED ALONG WITH BILLS THEY WERE VERIFIED BY THE LEARNED AO DURING THE ASSESSMENT PROCEEDINGS. THE ASSESSMENT ORDER WAS NE ITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF REVENUE. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, VARY, OMIT, SUBSTITUTE OR AMEND THE ABOVE GROUNDS OF APPEAL, AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE APPEAL, SO AS TO ENABLE THE HONOURABLE MEMBERS TO DECIDE THIS APPEAL ACCORDING TO LAW. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THERE IS A DELAY OF 20 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL AND THE ASSESSEE HAS NOT FILED ANY CONDONATION PETITION . THE LD. AR FU RTHER SUBMITTED THAT THE ASSESSEE HAD GOT RELIEF FROM THE CONSEQUENTIAL ORDER PASSED BY THE LD. AO PURSUANT TO THE IMPUGNED ORDER OF THE LD. PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), HYDERABAD PASSED U/S. 263 OF 4 THE ACT. IT WAS THEREFORE SUBMITTED T HAT THE APPEALS OF THE ASSESSEE IS INFRUCTUOUS. THE LD. DR CONCEDED TO THE SUBMISSION OF THE LD. AR. 4 . AFTER HEARING BOTH THE PARTIES, IT IS OBVIOUS THAT THE APPEAL OF THE ASSESSEE HAS BECOME INFRUCTUOUS. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED AS SUCH . PRONOUNCED IN THE OPEN COURT ON THE 08 TH JULY, 2021. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 08 TH JULY , 2021. OKK COPY TO: - 1) RAVI FOODS PVT LTD., 7 - 4 - 112/1, MADHUBAN COLONY, KATTEDAN, HYDERABAD - 500 077. 2) DCIT, CENTRAL CIRCLE - 1(3), 7 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 3) THE PRINCIPAL COMMISSIONER OF INCOME TAX / COMMISSIONER OF INCOME TAX (CENTRAL), HYDERABAD. 4) THE DR, ITAT, HYDERABAD 5) GUARD FILE