Ajay Varma Nagaraju , Hyderabad V. Income Tax Officer, Ward-12(3), Hyderabad

ITA 364/Hyd/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7412 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2009-2010
• Appeal Filed On: 19-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PHANI RAJU
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Reopening of assessment; Earning of tax free income; Tangible material; Difference of opinion; Revised return; Change of opinion
• Section: 143(3); 201; 143(2); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A ', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 364 / HYD/201 9 ASSESSMENT YEAR: 20 0 9 - 1 0 AJAY VARMA NAGARAJU, HYDERABAD. PAN A BVPN2157K VS. INCOME - TAX OFFICER, WARD 1 2 ( 3 ), HYDERABAD APPELLANT RESPONDENT ASSESSEE BY: S H RI P. MURALI MOHANA RAO REVENUE BY: S HRI PHANI RAJU DATE OF HEARING: 24 / 0 4 / 201 9 DATE OF PRONOUNCEMENT: 03 / 0 5 /201 9 O R D E R PER S. RIFAUR RAHMAN , AM: T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 1 , HYDERABAD, DATED, 11 / 01 /201 9 FOR AY 20 0 9 - 10 . 2. BRIEF FACTS OF THE CASE ARE, THE ASSESSMENT WAS ORIGINALLY COMPLETED U/S 143(3) OF THE INCOME - TAX ACT, 1961 , IN SHORT , ( THE ACT) ON A TOTAL INCOME OF RS. 12,99,877/ - , IN WHICH, THE ASSESSEE CLAIMED ALLOWANCE OF EXEMPT ION U/S 10 TO THE TUNE OF RS. 7,03,44 1/ - . T HE ASSESSEE DID NOT FURNISH ANY DETAILS NOR PROOF FOR CLAIM OF EXEMPTION U/S 10, THE AO REOPENED THE ASSESSMENT U/S 147 OF THE ACT BY ISSUE OF NOTICE U/S 148 OF THE ACT VIDE NOTICE DATED 31/03/2014. AO NOTED THAT THOUGH SEVERAL NOTICES WERE ISSUED TO THE ASSESSEE TO FURNISH DETAILS OF CLAIM U/S 10 ALONG WITH NECESSARY PROOF, THE ASSESSEE FAILED TO FURNISH ANY DETAILS. I.T.A. NO. 364 /HYD/1 9 AJAY VARMA NAGARAJU, HYD. 2 2.1 ON 16/03/2015, THE ASSESSEE FILED A REQUEST FOR PROVIDING REASONS FOR REOPENING OF THE ASSESSMENT, WHICH WAS DENIED BY THE AO AS THE ASSESSEE HAS NOT FILED RETURN OF INCOME IN RESPONSE TO THE NOTICE U/S 148 OF THE ACT. THE AO, ACCORDINGLY, DISALLOWED THE ASSESSEES CLAIM, TO THE EXTENT OF RS. 6,93,841/ - . AFTER ALLOWING AN AMOUNT OF RS. 9,600/ - PAID TOWARDS TRANSPORT ALLOWANCE . 3 . AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ORDER OF AO. 4. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US CONTENDING IN THE GROUNDS OF APPEAL, INTER - ALIA THAT ON THE BASIS OF MERE CHANGE OF OPINION AND WITHOUT THERE BEING ANY NEW TANGIBLE MATERIAL, THE ASSESSMENT WAS REOPENED. FURTHER, IT WA S CONTENDED THAT WITHOUT ISSUING THE STATUTORY NOTICE U/S 143(2) OF THE ACT, WHEN THE ASSESSEE HAS INFORMED THROUGH HIS LETTER THAT THE RETURN OF INCOME ORIGINALLY FILED ON 31/10/2009 MAY BE TREATED AS THAT OF THE RETURN OF INCOME FILED IN RESPONSE TO THE NOTICE U/S 148. FURTHER, IT WAS CONTENDED THAT THE AO ERRED IN NOT COMMUNICATING THE REASONS FOR REOPENING THE ASSESSMENT U/S 148 OF THE ACT. 5. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE CLAIMED ALLOWANCE OF EXEMPT ION U/S 10 OF THE ACT TO THE TUNE OF RS. 7,03,441/ - , WHICH WAS ALLOWED IN THE ORIGINAL ASSESSMENT PASSED U/S 143(3) ON 03/11/2011. AFTER A LAPSE OF THREE YEARS, THE AO ALLEGED THAT THE ASSESSEE DID NOT FURNISH THE DETAILS FOR CLAIMING EXEMPT ION U/S 10 AND HENCE REOPENED THE ASSESSMENT AND DISALLOWED THE ASSESSEES CLAIM OF EXEMPTION ON THE GROUND THAT THOUGH SEVERAL OPPORTUNITIES WERE PROVIDED TO THE ASSESSEE, THE ASSESSEE FAILED TO SUBMIT ANY DETAILS I.T.A. NO. 364 /HYD/1 9 AJAY VARMA NAGARAJU, HYD. 3 REGARDING THE EXEMPT INCOME. EVEN WHEN THE ASSESSEE ASK ED TO PROVIDE THE REASONS FOR REOPENING, THE AO DENIED THE SAME ON THE GROUND THAT THE ASSESSEE HAS NOT FURNISHED REVISED RETURN OF INCOME AGAINST THE ISSUE OF NOTICE U/S 148, WHEREAS, THE ASSESSEE STATES THAT HE HAS INFORMED THROUGH HIS LETTER THAT THE RE TURN OF INCOME ORIGINALLY FILED ON 31/10/2009 MAY BE TREATED AS THAT OF THE RETURN OF INCOME FILED IN RESPONSE TO THE NOTICE U/S 148. 5.1 WE FIND THAT THE AO WITHOUT BRING ING ANY NEW TANGIBLE MATERIAL ON RECORD, REOPENED THE ASSESSMENT ON THE BASIS OF ME RE CHANGE OF OPINION, THEREFORE, THE REOPENING OF ASSESSMENT U/S 147 IS BAD IN LAW AND THE SAME IS HEREBY QUASHED. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 3 RD MAY , 201 9. SD/ - ( P. MADHAVI DEVI ) JUDICIAL MEMBER SD/ - ( S. RIFAUR RAHMAN ) ACCOUNTANT MEMBER HYDERABAD, DATED 3 RD MAY , 201 9. KV COPY FORWARDED TO: 1. SHRI AJAY VARMA NAGARAJU, C/O P. MURALI & CO., CAS 6 - 3 - 655/2/3, SOMAJIGUDA, HYDERABAD 500 082 2 . ITO, WARD 12(3), HYD . 3 . CIT (A) - 1 , HYDERABAD 4. PR. CIT 1 , HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE