Smt. K. Suseela, Vijayawada V. The ACIT, Circle-2(1), Vijayawada, Vijayawada

ITA 330/VIZ/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80148 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-07-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 01-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Keywords: Assessment record
• Section: 143(3); 54; 263; 154

Judgement Text

ITA NO.330/VIZAG/2011 SMT. K. SUSEELA, VIJAYAWADA IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.330/VIZAG/2011 ASSESSMENT YEAR : 2007 - 08 SMT. K. SUSEELA VIJAYAWADA VS. ACIT CIRCLE-2(1) VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO.AFWPK 8823N ASSESSEE BY: SHRI C. SUBRAHMANYAM, CA REVENUE BY: SHRI K.V.N. CHARYA, CIT(DR) DATE OF HEARING : 10.07.2014 DATE OF PRONOUNCEMENT : 10.07.2014 ORDER PER BENCH:- THIS IS AN APPEAL OF THE ASSESSEE AGAINST THE ORDE R DATED 31.8.2011 PASSED BY THE CIT VIJAYAWADA REJECTING ASSESSEES A PPLICATION U/S 154 OF THE ACT. 2. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD. A.R. MOVED AN APPLICATION SEEKING ADJOURNMENT. HOWEVER, CONSIDER ING THE NATURE OF DISPUTE IN THE APPEAL AND ALSO THE FACT THAT NO USEFUL PURP OSE WILL BE SERVED IN KEEPING THE APPEAL PENDING REQUEST FOR ADJOURNMENT WAS REJECTED AND APPEAL WAS TAKEN UP FOR HEARING. 3. BRIEFLY THE FACTS ARE, THE ASSESSEE AN INDIVIDUA L IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF PESTICIDES AND MICRO N UTRIENTS THROUGH HER PROPRIETARY CONCERN IN THE NAME AND STYLE OF NAGARJ UNA AGRO AND STEEL CORPORATION. FOR THE ASSESSMENT YEAR UNDER DISPUTE , SHE FILED RETURN OF INCOME ON 25.10.2007 DECLARING TOTAL INCOME OF RS.1 ,79,542/- BESIDES AGRICULTURAL INCOME OF RS.1,50,000/- AND THERE AFTE R CLAIMED SET OF OF BROUGHT FORWARD LOSSES. ASSESSMENT IN CASE OF THE ASSESSEE WAS COMPLETED U/S 143(3) OF THE ACT BY MAKING AN ADDITION OF RS.2,66, 770/- ON ACCOUNT OF DISALLOWANCE OF INTEREST AND FREIGHT CHARGES U/S 40 (A)(IA) OF THE ACT. THIS ITA NO.330/VIZAG/2011 SMT. K. SUSEELA, VIJAYAWADA 2 RESULTED IN REDUCTION OF LOSS TO BE CARRIED FORWARD TO RS.1,04,39,894/-. THE CIT IN EXERCISE OF POWER CALLED FOR THE ASSESSMENT RECORDS AND AFTER EXAMINING THE SAME WAS OF THE VIEW THAT THE ASSESSM ENT ORDER PASSED IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENU E. ACCORDINGLY, HE ISSUED NOTICE PROPOSING TO REVISE THE ASSESSMENT ORDER. O NE OF THE ISSUE RAISED BY THE CIT DURING THE PROCEEDING U/S 263 OF THE ACT IS IN RESPECT OF CREDITS AMOUNTING TO RS.41,28,434/- RELATING TO 19 CREDITOR S. AS OBSERVED BY THE CIT, THE ASSESSEE BEING UNABLE TO SUBSTANTIATE THE CREDITS ACCEPTED AND AGREED TO ADDITION OF THE AMOUNT OF RS.41,28,434/-. ACCORDINGLY, THE CIT PASSED AN ORDER U/S 263 OF THE ACT BY DIRECTING THE ASSESSING OFFICER TO ADD THE SAID AMOUNT OF RS.41,16,817.49PS. AFTER THE AF ORESAID ORDER WAS PASSED BY THE CIT, THE ASSESSEE FILED AN APPLICATION U/S 1 54 OF THE ACT STATING THEREIN AS UNDER: UNDER THE CONSTRAINED CIRCUMSTANCES, I HAVE CONCEDE D BEFORE YOUR GOODSELVES FOR AN ADDITION OF RS.41,28, 435/- AS THERE IS NO LOSS OF REVENUE FOR YOU AND ALSO THERE IS NO PAY MENT OF TAX FROM MY SIDE SINCE THE CARRY FORWARD LOSSES ARE AVAILABL E WITH ME FOR THE LAST SEVERAL YEARS EVEN BEYOND THE LAPSE OF TIME. I HAVE ALSO SUBMITTED THE COPIES OF ALL THE SUIT FILED ACCOUNTS ON ME BY THE CREDITORS WHOSE DETAILS ARE GIVEN BELOW: SUBSEQUENTLY, AFTER GETTING THE ADVISE FROM THE EXP ERTS AND ALSO AFTER ASCERTAINING THE LEGAL POSITION WHICH IS DEBATABLE, MY CONCEDING MAY NOT BE CORRECT EITHER LEGALLY OR FACT UALLY, AS ALL THE ABOVE CREDITORS HAD FILED SUITS AGAINST ME WHICH DO ES NOT WARRANT ADDITION. IF ADEQUATE TIME IS GIVEN, I CAN PRODUCE ACCOUNT CONFIRMATION LETTERS FROM THE REST OF THE CREDITORS FOR RS.4,29,744.66 AND HENCE I REQUEST YOU TO REVISE THE ORDER TO THAT EFFECT. 4. THE CIT AFTER CONSIDERING THE SUBMISSIONS MADE B Y THE ASSESSEE AS WELL AS THE CONTENTS OF THE PETITION FILED U/S 154 OF THE ACT REJECTED THE APPLICATION BY HOLDING THAT THERE IS NO MISTAKE APP ARENT ON THE FACE OF RECORD REQUIRING RECTIFICATION U/S 154 OF THE ACT. M/S. SUPER CHEMICALS, MUMBAI RS.19,59,750.83 M/S. UNITOP CHEMICALS PVT. LTD., MUMBAI RS.4,15,424 .00 M/S. SHREE RUBBER PLAST CO. PVT. LTD., MUMBAI RS.5,30,000.00 M/S. GANGA RASAYANIE PVT. LTD., KOLKATA RS.7,81,898 .00 TOTAL RS.36,87,072.83 ITA NO.330/VIZAG/2011 SMT. K. SUSEELA, VIJAYAWADA 3 5. WE HAVE HEARD THE PARTIES, PERUSED THE IMPUGNED ORDER OF THE CIT AS WELL AS OTHER MATERIALS ON RECORD. THE LD. A.R. RE LIED ON THE GROUNDS RAISED WHEREAS THE LD. D.R. SUPPORTED THE ORDER OF THE CIT . IT IS QUITE CLEAR FROM THE ORDER OF THE CIT AS WELL AS THE PETITION FILED U/S 154 OF THE ACT BY THE ASSESSEE THAT IN COURSE OF THE PROCEEDING U/S 263 O F THE ACT, THE ASSESSEE BEING UNABLE TO SUBSTANTIATE/PROVE THE CREDITS OF R S.41,28,434/- ACCEPTED AND AGREED FOR ADDITION OF THE SAID AMOUNT. ACCORD INGLY, THE CIT PASSED THE ORDER U/.S 263 DIRECTING THE ASSESSING OFFICER TO A DD THE SAID AMOUNT. IN THE AFORESAID VIEW OF THE MATTER, WE DO NOT FIND ANY MI STAKE APPARENT ON THE FACE OF THE RECORD IN ORDER OF CIT AS ENVISAGED U/S 154 OF THE ACT. THEREFORE, ONLY BECAUSE THE ASSESSEE SUBSEQUENTLY FEELS THAT H E SHOULD NOT HAVE AGREED OR ACCEPTED TO THE ADDITION OF RS.41,28,434/-, IT C ANNOT BE SAID THAT THERE IS A MISTAKE IN THE ORDER OF THE CIT. ACCORDINGLY, WE D O NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER OF THE CIT WHICH IS UPHELD. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON 10 TH JULY14 SD/- SD/- (J. SUDHAKAR REDDY) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 10 TH JULY, 2014 COPY TO 1 SHRI G.V.V. SATYANARAYANA, FCA, Y.V. JAGANNADHA R AO & CO., D.NO.29-1- 17, 2 ND FLOOR, SRI KRISHNA NILAYAM, SESHADRI SASTRI STREET , GOVERNORPET, VIJAYAWADA-520 002. 2 THE CIT, VIJAYAWADA 3 THE CIT (A) , VIJAYAWADA 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM