Parakala Prabhakar, Hyd, Hyderabad V. ITO, Ward-8(2), Hyd, Hyderabad

ITA 393/HYD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2492 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 30-05-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 24-03-2016
• Court: TRIBUNAL
• Department Lawyers: PRAVEENA
• Assessee Lawyers: A V RAGHURAM
• Keywords: Unexplained cash credit
• Section: 80C; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 393/HYD/2016 ASSESSMENT YEAR: 2009-10 SHRI PARAKALA PRABHAKAR, HYDERABAD [PAN: AEJPP6040A] VS INCOME TAX OFFICER, WARD-8(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHU RAM, AR FOR REVENUE : SMT PRAVEENA, DR DATE OF HEARING : 31-05-2017 DATE OF PRONOUNCEMENT : 31-05-2017 O R D E R THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, HYDERABAD, DATED 18-01-2016 (WRONGLY TYPED AS 18-01-2006). ASSESSEE HAS RAISED THE MAIN GROUND THAT LD.CIT(A) ERRED IN CONFIRMING TH E ASSESSMENT AS WAS DONE BY THE ASSESSING OFFICER (AO) U/S. 144 O F THE INCOME TAX ACT [ACT], WITHOUT GIVING AN OPPORTUNITY. 2. AO IN THE COURSE OF ASSESSMENT COMPLETED EX-PARTE U/S. 144 MADE AN ADDITION OF UNEXPLAINED CREDITS IN THE BANK AC COUNT TO AN EXTENT OF RS. 16,56,530/- AND DISALLOWED CLAIM OF 80 C TO AN EXTENT OF RS. 21,028/-. WHILE MAKING THE ADDITION, AO NOTICE D THAT ASSESSEE HAD DEPOSITS TO AN EXTENT OF RS. 20,02,281/- OUT OF WHICH, HE HAS GIVEN CREDIT FOR INTEREST INCOME AND RECEIPTS SH OWN BY I.T.A. NO. 393/HYD/2016 :- 2 - : ASSESSEE AND BALANCE AMOUNT OF RS. 16,56,530/- WAS B ROUGHT TO TAX. AO ALSO DISALLOWED THE CLAIM U/S. 80C ON THE REA SON THAT NO EVIDENCE WAS FURNISHED. 3. EVEN THOUGH APPEAL WAS PREFERRED BEFORE THE LD.CIT (A), LD.CIT(A) CONFIRMED THE ADDITION AS MADE BY THE AO, AS ASSESSEE DID NOT APPEAR BEFORE HIM. 4. AT THE OUTSET, LD. COUNSEL SUBMITTED THAT ASSESSEE WAS N OT IN RECEIPT OF ANY NOTICES AND HENCE, HE HAD NO OPPOR TUNITY TO EXPLAIN THE CREDITS. FURTHER, IT WAS SUBMITTED THAT EVEN THOUGH LD.CIT(A) MENTIONED THAT HEARING NOTICES WERE SENT, ASSE SSEE WAS NOT IN RECEIPT OF ANY NOTICES AND ACCORDINGLY, THERE I S NO OPPORTUNITY TO APPEAR BEFORE THE LD.CIT(A) ALSO. IT WA S THE PLEADING THAT THE MATTER MAY BE SET ASIDE TO THE AO FOR EXAMINATION OF THE ISSUES AFRESH. 5. AFTER CONSIDERING THE RIVAL CONTENTIONS, I AM OF THE OPINION THAT ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY TO E XPLAIN THE CREDITS IN THE BANK ACCOUNTS. IT IS ALSO NOTICED THAT AO IN THE SHOW CAUSE NOTICE DT. 10-10-2011 STATES THAT THE CREDITS IN THE BANK ACCOUNTS ARE TO THE TUNE OF RS. 22,51,900/-. HOWE VER, IN PARA 3 WHILE CONCLUDING THE ADDITION, IT WAS NOTED THAT THE TOTAL RECEIPTS ARE TO THE TUNE OF RS. 20,02,281/-. EVEN THOUG H, AO PROPOSED ADDITION OF RS. 22,51,900/- HE REDUCED IT TO RS. 16,56,530/-. THERE IS NO RECONCILIATION OF EITHER THE RECEIPTS OR THE CREDITS GIVEN IN THE ASSESSMENT. LD.CIT(A) ALSO DID N OT SPECIFY THE DATES OF HEARING IN THE ORDER. HE HAS SIMPLY CONFIRME D THE ORDER OF THE AO, STATING THAT THE ASSESSEE HAS NOT APPEARED BEFORE HIM. IN I.T.A. NO. 393/HYD/2016 :- 3 - : THESE CIRCUMSTANCES, WITHOUT GOING TO THE MERITS OF THE OR DERS OF AO AND CIT(A), I AM OF THE OPINION THAT THE ENTIRE ISSU E OF ASSESSMENT IS TO BE RESTORED TO THE FILE OF AO TO DO IT A FRESH, AFTER GIVING DUE OPPORTUNITY TO ASSESSEE. IF ASSESSEE DID NOT RECEIVE ANY NOTICE WITHIN THREE MONTHS FROM THE DATE OF SERVICE O F THE ORDER, ASSESSEE IS ADVISED TO FURNISH THE CORRECT ADDRESS FOR SERVICE OF NOTICE AND ALSO FURNISH NECESSARY DETAILS BEFORE THE AO, SO AS TO COMPLETE THE ASSESSMENT AFTER DUE VERIFICATION. WITH THESE OBSERVATIONS, THE ORDERS OF THE AO AND CIT(A) ARE SET A SIDE AND THE ASSESSMENT IS RESTORED TO THE FILE OF AO TO DO IT AFRES H AS PER LAW AND FACTS. GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSE S. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY, 2017 UPON CONCLUSION OF HEARING SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 31 ST MAY, 2017 TNMM I.T.A. NO. 393/HYD/2016 :- 4 - : COPY TO : 1. SHRI PARAKALA PRABHAKAR, HYDERABAD. C/O. SAMUEL NAGADESI, CHARTERED ACCOUNTANT, 408, SRI RAMAKRISHN A TOWERS, BESIDES IMAGE HOSPITALS, NAGARJUNA NAGAR, A MEER PET, HYDERABAD. 2. INCOME TAX OFFICER, WARD-8(2), HYDERABAD. 3. CIT (APPEALS)-2, HYDERABAD. 4. PR.CIT-2, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.