Irri Surya Prakash Rao, Nidadavole V. The Income Tax Officer, Ward-2, Tanuku

ITA 358/VIZ/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0865 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 03-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Reopening of assessment
• Section: 40A(3); 143(3); 194C; 147; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM (THROUGH WEB - BASED VIDEO CONFERENCING PLATFORM) . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ I.T. A.NO. 3 5 8 /VIZ/201 9 ( / A SSESSMENT Y EAR : 20 09 - 10 ) IRRI SURYA PRAKASH RAO S/O VEERRAJU JAGGERY MERCHANT NIDADAVOLE [ PAN : AAEPI2478N] VS INCOME TAX OFFICER WARD - 2 , TANUKU ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI, AR / RESPONDENT BY : SMT SUMAN MALIK, DR / DATE OF HEARING : 03 .0 6 .2020 / DATE OF PRONOUNCEMENT : 05. 0 6 . 20 20 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 11 , HYDERABAD IN APPEAL NO. 213 /201 7 - 1 8 /CIT( A ) - 11 / HYD DATED 2 8 . 0 2 .201 9 FOR THE ASSESSMENT YEAR (A.Y.) 20 09 - 1 0. 2 I.T.A. NO. 3 5 8 /VIZ/201 9 A.Y.20 09 - 1 0 IRRI SURYA PRAKASH RAO, NIDADAVOLE 2. IN THIS CASE, ASSESSMENT WAS COMPLETED ORIGINALLY U/S 143(3) FOR THE A.Y.2009 - 10 ON 18.11.2011 DETERMINING THE TOTAL INCOME OF RS.3,57,610 / - AGA INST THE DECLARED INCOME O F RS.1,82,610/ - . SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED U/SEC. 147 OF THE ACT FOR VIOLATION OF PROVISIONS OF SECTION 40A(3) OF THE INCOME TAX ACT, 1961 [IN SHORT ACT] BY ISSUE OF NOTICE U/S 148 OF THE ACT. THE REASSESSMENT WAS COMPLETED U/S 143(3) R.W.S. 147 BY AN ORDER DATED 17.08.2015 ON TOTAL INCOME OF RS.14,36,430/ - . IN THE RE ASSESSMENT ORDER, THE ASSESSING OFFICER (AO) MADE THE ADDITIONS RELATING TO PAYMENTS MADE TO LORRIES FOR NON - DEDUCTION OF TAX AT SOURCE U/S . 194C OF THE ACT FOR AN AMOUNT OF RS.3,08,150/ - , PAYMENT OF COMMISSION FOR NON DEDUCTION OF TAX AT SOURCE U/S 194H OF THE ACT FOR AN AMOUNT OF RS.4,01,065/ - AND THE PAYMENT S IN VIOLATION OF PROVISIONS OF SE C.40A(3) OF THE ACT FOR AN AMOUNT OF RS.3,69,600/ - AGGREGATING TO RS.10,78,815/ - . 3. AGAINST THE ORDER U/S 143(3) R.W.S. 147, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) DISPOSED OF THE APPEAL EX - PARTE BY AN ORDER DATED 28.02.2019. 4. AGAINST WHICH THE ASSESSEE FILED APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING, THE LD.AR SUBMITTED THAT THE ASSESSEE HAS RAISED THE ISSUE WITH REGARD TO VALIDITY OF REOPENING OF ASSESSMENT U/S 147 WHICH WAS 3 I.T.A. NO. 3 5 8 /VIZ/201 9 A.Y.20 09 - 1 0 IRRI SURYA PRAKASH RAO, NIDADAVOLE NOT ADJUDICATED BY THE LD.CIT(A) BY S PEAKING ORDER. THE ASSESSMENT YEAR UNDER CONSIDERATION 2009 - 10 AND THE NOTICE WAS ISSUED ON 04.04.2015, THAT IS BEYOND 4 YEARS. NEITHER THE CIT(A) NOR THE AO BROUGHT OUT THE FAILURE OF THE ASSESS E E TO REOPEN THE ASSESSMENT . SIMILARLY ON MERITS ALSO, THE LD.CIT(A) HAS NOT DECIDED THE ISSUES BY SPEAKING ORDER . THEREFORE, REQUESTED TO REMIT THE MATTER BACK TO THE FILE OF THE LD.CIT(A) TO DECIDE THE ISSUE ON MERITS. THE LD . AR ASSURED PROPER COMPLIANCE BEFORE THE LD.CIT(A). 5. ON THE OTHER HAND, THE LD.DR FAIRLY CONCEDED TO REMIT THE MATTER BACK TO THE FILE OF THE LD.CIT(A). 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE L D.CIT(A) AND THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE BEFORE THE LD.CIT(A) . THE LD.CIT(A) HAS DECIDED THE ISSUES WI THOU T ANALYZING THE ISSUES PROPERLY BOTH ON MERITS AS WELL THE ISSUE OF REOPENING OF ASSESSMENT. THOUGH THE LD.CIT(A) ID PERMITTED TO PASS EXPARTE ORDER THE SAME SHOULD BE ON MERITS AND BY SPEAKING ORDER. THEREFORE, IN THE INTEREST OF JUSTICE, WE REMIT THE MATTER BACK TO THE FILE OF THE LD.CIT(A) WITH A DIRECTION TO DISPOSE OF THE APPEAL ON MERITS BY SPEAKING ORDER. 4 I.T.A. NO. 3 5 8 /VIZ/201 9 A.Y.20 09 - 1 0 IRRI SURYA PRAKASH RAO, NIDADAVOLE 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 5 TH JUNE , 2020. SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : . 05. 0 6 .20 20 L.RAMA, SPS / COPY OF THE ORDER FORWARDED TO : - 1. / THE REVENUE INCOME TAX OFFICER, WARD - 2, TANUKU 2 . / THE ASSESSEE IRRI SURYA PRAKASH RAO, S/O VEERRAJU JAGGERY MERCHANT NIDADAVOLE. 3. THE PR. COMMISSIONER OF INCOME TAX , RAJAHMUNDRY . 4. THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 1 , HYDERABAD . 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM