Krishnapatnam Port Company Ltd., Hyd, Hyderabad V. ACIT, TDS Circle-1(1), Hyd, Hyderabad

ITA 360/HYD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6315 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 22-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V RAGHAVENDRA RAO
• Keywords: Opportunity of being heard; Non-deduction of tax
• Section: 133A; 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 359 & 360/HYD/2016 ASSESSMENT YEAR: 2011-12 M/S KRISHNAPATNAM PORT COMPANY LTD., HYDERABAD. PAN AAACK 8657 J VS. ADDL. COMMISSIONER OF INCOME-TAX, TDS, RANGE - 1, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V. RAGHAVENDRA RAO REVENUE BY : SHRI G.S.S.S. GOPINATH DATE OF HEARING 11-07-2016 DATE OF PRONOUNCEMENT 20-07-2016 O R D E R PER S. RIFAUR RAHMAN, A.M.: BOTH THESE APPEALS ARE PREFERRED BY THE ASSESSEE A GAINST SEPARATE ORDERS OF THE LEARNED COMMISSIONER OF INCO ME-TAX(A) - 8, HYDERABAD, BOTH, DATED 11 TH FEBRUARY, 2016 FOR AYS 2011-12. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE DEDUCTOR IS A COMPANY ENGAGED IN THE BUSINESS OF CONSTRUCTION AND OPERATION OF SEA PORT AT KRISHNAPATNAM. A SURVEY U/S 133A WAS CO NDUCTED IN THE BUSINESS PREMISES OF THE COMPANY ON 12/09/2013. THE ORDER U/S 201(1) AND 201(1A) WAS PASSED ON 30/01/2015 RAISING A DEMAND OF RS. 4,36,33,808/- TOWARDS NON-DEDUCTION OF TAX ON S HARE APPLICATION MONEY AND INTEREST U/S 201(1A) OF THE ACT. SUBSEQUE NTLY, PENALTY ORDER U/S 271C OF THE ACT WAS PASSED ON 30/01/2015 LEVYING A PENALTY OF RS. 1,18,49,850/- FOR FAILURE TO COMPLY WITH THE PROVISIONS OF CHAPTER XVIIB OF THE ACT. 2 ITA NOS. 359 & 360 /H/16 KRISHNAPATNAM PORT COMPANY LTD., HYD. 3. AGGRIEVED, THE ASSESSEE CARRIED THE MATTERS IN A PPEAL BEFORE THE CIT(A) AGAINST THE ORDERS OF AO U/S 201(1)/201( 1A) AND U/S 271C OF THE ACT. 4. THE CIT(A) DISMISSED BOTH THE APPEALS ON TECHNIC AL GROUNDS WITHOUT GOING INTO THE MERITS OF THE CASE, BY OBSER VING AS UNDER: KEEPING IN VIEW THE STATUTORY PROVISIONS AS PER THE INCOME-TAX ACT AND THE RATIO OF THE DECISIONS OF THE HONBLE S UPREME COURT, THE WRONG FILING OF APPEALS AND THE ABSENCE OF CONV INCING REASONS FOR THE FILING OF APPEAL ERRONEOUSLY AND RE CTIFYING IT WITH CASUAL REASONS DOES NOT MERIT CONSIDERATION. 5. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 6. THE LD. AR OF THE ASSESSEE SUBMITTED THAT BEFORE THE ITAT THE ASSESSEE FILED REVISED FORM 36 AFTER REMOVING THE D EFECTS, AS RAISED BY THE CIT(A) IN HIS ORDER. HE, THEREFORE, SUBMITTE D THAT THE MATTERS MAY BE REMITTED BACK TO THE FILE OF THE CIT(A) WITH A DIRECTION TO DECIDE THE APPEALS ON MERITS. 7. THE LD. DR, ON THE OTHER HAND, DID NOT OBJECT TO THE SUBMISSIONS OF LD. AR. 8. CONSIDERED THE SUBMISSIONS OF THE ASSESSEE AND P ERUSED THE MATERIAL FACTS ON RECORD AS WELL AS THE ORDERS OF R EVENUE AUTHORITIES. SINCE THE DEFECTS RAISED BY THE CIT(A) IN HIS ORDER HAVE BEEN CURED/REMOVED BY THE ASSESSEE, WE REMIT BOTH APPEAL S UNDER CONSIDERATION TO THE FILE OF THE CIT(A) WITH A DIRE CTION TO DECIDE THE SAME ON MERITS IN ACCORDANCE WITH LAW AFTER PROVIDI NG REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS WELL AS AO. 3 ITA NOS. 359 & 360 /H/16 KRISHNAPATNAM PORT COMPANY LTD., HYD. 9. IN THE RESULT, BOTH THE APPEALS UNDER CONSIDERAT ION ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 20 TH JULY, 2016 SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAH MAN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 20 TH JULY, 2016 KV COPY TO:- 1) M/S KRISHNAPATNAM PORT COMPANY LTD., PLOT NO. 37 9, ROAD NO. 10, JUBILEE HILLS, HYDERABAD 500 033. 2) ADDL. CIT, TDS, RANGE 1, HYDERABAD 3) CIT(A) - 8, HYDERABAD 4) CIT(TDS), HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.