Vayunandana Power Limited, Hyderabad V. DCIT, Circle-3(3), Hyderabad

ITA 386/HYD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4799 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 12-03-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AMLAN TRIPATHI
• Assessee Lawyers: S RAMA RAO
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.386/HYD/12 : ASSESSMENT YEAR 2008 - 09 M/S. VAYUNANDANA POWER LIMITED, GUDIMALKAPUR, HYDERABAD (PAN AAC CV 2146 F ) V/S. DY. COMMISSIONER OF INCOME - TAX HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.RAMA RAO RESPONDENT BY : SHRI AMLAN TRIPATHI DATE OF HEARING 29.08.2013 DATE OF PRONOUNCEMENT 29.08.2013 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) IV HYDERABAD DATED 30 . 8 .201 1 FOR THE ASSESSMENT YEAR 200 8 - 0 9 . 2. AT THE OUTSET, IT MAY NOTED THAT THIS APPEAL HAS BEEN FILED BY THE ASSESSEE WITH A DELAY OF 117 DAYS. THE ASSESSEE HAS FILED APETITION SEEKING CONDONATION OF DELAY. IT IS STATED IN THE SAID PETITION THAT THERE WAS CHANGE IN THE MANAGEMENT OF THE ASSESSEE COMPANY AND IT IS ONLY AFTER THE NEW DIRECTORS STATIONED AT DELHI HAVE TAKEN OVER THE MANAGEMENT, THAT THE PRESENT APPEAL COULD BE FILED, WHICH RESULTED IN THE DELAY IN THE FILING OF THE APPEAL. SINCE THE DELAY HAS OCCURRED FOR A BONA FIDE REASON AND IT SI BEYOND THE CONTROL OF THE ASSESSEE, IT IS PRAYED THAT THE SAME MAY BE CONDONED. ITA NO. 386 / HYD/201 2 M/S. VAYUNANDANA POWER LIMITED, H YDERABAD 2 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, OPPOSED THE PRAYER OF THE ASSESSEE FOR CONDONATION OF DELAY AND SUBMITTED THAT THE CAUSE FOR THE DELAY E XPLAINED IS NOT JUSTIFIED. 4. ON CAREFUL CONSIDERATION OF THE MATTER IN THE LIGHT OF RIVAL CONTENTIONS WITH REGAD TO THE JUSTIFICATION FOR THE DELAY EXPLAINED BY THE ASSESSEE, WE ARE OF THE OPINION THAT THERE IS REASONABLE CAUSE FOR THE DELAY OF 117 DAYS. WE ACCORDINGLY CONDONE THE DELAY AND PROCEED TO DISPOSE OF THIS APPEAL ON ITS MERITS. 5. NOW TURNING TO THE M ERITS OF THE APPEAL, THE ONLY ISSUE IN DISPUTE IN THIS APPEAL RELATES TO THE ADDITION MADE BY THE ASSESSING OFFICER OF RS.57,89,910 UNDER S.68 OF THE ACT, DISBELIEVING THE SHARE APPLICATION MONEY CLAIMED TO HAVE BEEN RECEIVED BY THE ASSESSEE COMPANY. 6. WE HEARD BOTH SIDES AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. THE ADDITION IN DISPUTE HAS BEEN MADE ON ACCOUNT OF ASSESSEES INABILITY TO PRODUCE BEFORE THE ASSESSING OFFICER THE RELEVANT DETAILS OF CERTAIN SHARE HOLDERS FROM WHOM THE SHARE APPLI CATION MONEY IN QUESTION HAS BEEN RECEIVED. IN THE COURSE OF HEARING BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE PRAYED FOR ONE MORE REASONABLE OPPORTUNITY BEING GIVEN TO IT TO FURNISH THE REQUISITE DETAILS CALLED FOR BY THE ASSESSING OFFICER. CONSIDERIN G TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, SINCE IT IS ONLY ON ACCOUNT OF ABSENCE OF CERTAIN DETAILS ADDITION IN QUESTION HAS BEEN MADE, AND SINCE THERE IS CHANGE IN THE MANAGEMENT OF THE ASSESSEE COMPANY, WE ARE INCLINED TO ACCEPT THE PRAYER OF TH E ASSESSEE FOR ONE MORE OPPORTUNITY OF HEARING BEFORE THE ASSESSING OFFICER. WE ACCORDINGLY SET ASIDE THE IMPUGNED ORDER OF THE CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION OF THE ISSUE IN DISPUTE AFTER GIVING ONE MORE REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE . WE DIRECT THE ASSESSING OFFICER TO EXAMINE THE TOTALITY OF EVIDENCE THAT ITA NO. 386 / HYD/201 2 M/S. VAYUNANDANA POWER LIMITED, H YDERABAD 3 MAY BE FURNISHED BY THE ASSESSEE AND REDECIDE THE ISSUE IN ACCORDANCE WITH LAW . THE ASSESSEE IS AT LIBERTY TO FURNISH AL L THE RELEVANT MATERIAL, TO SUBTANTIATEE ITS CLAIM WITH REGARD TO RECEIPT OF SHARE APPLICATION MONEY IN QUESTION . IT IS HOWEVER, DIRECTED TO COOPERATE WITH THE ASSESSING OFFICER IN THE EARLY DISPOSAL OF THE APPEAL. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 29.8.2013 SD/ - SD/ - ( ASHA VIJAYARAGHAVAN ) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED/ - 29 TH AUGUST, 2013 COPY FORWARDED TO: 1 M/S. VAYUNANDANA POWER LIMITED, C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3 - 6 - 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 DY. COMMISSIONER OF INCOME - TAX CIRCLE 3( 3 ), HYDERABAD 3 COMMISSIONER OF INCOME - TAX(APPEALS) IV, HYDERABAD 4 COMMISSIONER OF INCOME - TAX III, HYDERABAD 5 DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S