Maa Santhoshi Traders, , Visakhapatnam V. Assistant Commissioner of Income Tax, (CPC), , Bangalore

ITA 40/VIZ/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2861 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Set aside
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 40 / VIZ /201 9 (ASST. YEAR : 20 13 - 14 ) M/S. MAA SANTHOSHI TRADERS, BLOCK NO. 6/A, N.T.R. MARKET YARD, RING ROAD, ANAKAPALLI, VISAKHAPATNAM DISTRICT. V S . ACIT (CPC) , BANGALORE . PAN NO. AAIFM 3193 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 03 / 0 6 /201 9 . DATE OF PRONOUNCEMENT : 12 / 0 6 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2 , VISAKHAPATNAM , DATED 20 / 11 /201 8 FOR THE ASSESSMENT YEAR 20 13 - 14 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE IS A FIRM HAVING TW O PARTNERS NAMELY; DADI SRINIVAS RAO AND DADI SURIBABU . THE ASSESSEE HAS FILED ITS RETURN OF INCOME BY DECLARING NET PROFIT OF RS. 30,770 / - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED 2 ITA NO. 40 /VIZ/2019 ( M/S. MAA SANTHOSHI TRADERS ) UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') AND THEREAFTER THE CPC AT BANGALORE DIRECTED THE FIRM TO PAY A SUM OF RS. 3,21,950/ - . 3 . AGAINST THE ORDER OF THE CPC, THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT(A) AND SUBMITTED THAT WHAT IS THE BASIS FOR THE CPC AT BANGALORE TO COME TO A CONCLUSION THAT THE NET TAX OF RS.3,21,950 / - IS PAYABLE AND ALSO SUBMITTED THAT WHAT ARE THE ADJUSTMENTS MADE BY THE CPC IS NOT AVAILABLE FROM THE ORDER PASSED U/S . 143(1) OF THE ACT, DATED 15/04/2014 . THE LD. CIT(A) WITHOUT CONSIDERING THE OBJECTIONS RAISED BY THE ASSESSEE , SHE WENT INTO ALL TOGETHER IN A DIFFERENT FOOTINGS THAT T HE ASSESSEE IS CARRYING ON IMFL BUSINESS AND PROFIT WAS ESTIMATED AND DISMISSED THE APPEAL OF THE ASSESSEE. 4 . ON BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THIS TRIBUNAL. 5. LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT LD. CIT(A) IS NOT CORRECT IN SUSTAINING THE ORDER OF THE CPC AND PRAYED THAT ADDITION MAY BE DELETED. 6 . ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE HAS STRONG L Y SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 7 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 3 ITA NO. 40 /VIZ/2019 ( M/S. MAA SANTHOSHI TRADERS ) 8 . THE ONLY ISSUE FOR CONSIDERATION BEFORE US IS THE DEMAND RAISED BY THE CPC, BANGALORE OF RS. 3,21,950/ - . THE ASSESSEE HAS ASKED BEFOR E THE LD. CIT(A) THAT HOW THE ABOVE AMOUNT HAS BEEN CALCULATED BY THE CPC, WHAT ARE THE ADJUSTMENTS MADE, NO SUCH DETAILS ARE AVAILABLE IN THE ORDER PASSED BY THE CPC U/SEC. 143(1) OF THE ACT AND THEREFORE, SUBMITTED THAT THE ORDER PASSED BY THE CPC IS NOT CORRECT. WE FIND THAT LD. CIT(A) WITHOUT CONSIDERING THE SAME HAS OBSERVED THAT THE ASSESSEE HAS NOT FILED COGENT EVIDENCE IN RESPECT OF DEMAND OF RS. 3,21,950/ - , HENCE DISMISSED THE SAME AND AL SO OBSERVED THAT THE ASSESSEE IS CARRYING ON IMFL BUSINESS. WE FIND THAT THE OBSERVATIONS OF THE LD. CIT(A) IS NOT CORRECT. I N OUR OPINION, THE ORDER OF THE LD.CIT(A) HAS TO BE SET ASIDE. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE ISSUE BACK TO THE FILE OF THE AO TO PASS AN ORDER BY CONSIDERING THE REQUEST OF THE ASSESSEE THAT HOW THE CPC HAS ADJUSTED AND RAISED A DEMAND OF RS. 3,21,950/ - UNDER SECTION 143(1) OF THE ACT. THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 4 ITA NO. 40 /VIZ/2019 ( M/S. MAA SANTHOSHI TRADERS ) 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 2 T H DAY OF JUNE , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 2 T H JUNE , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE - M/S. MAA SANTHOSHI TRADERS, BLOCK NO. 6/A, N.T.R. MARKET YARD, RING ROAD, ANAKAPALLI, VISAKHAPATNAM DISTRICT. 2. THE REVENUE ACIT (CPC), BANGALORE. 3. THE PR. CIT - 2, VISAKHAPATNAM. 4. THE CIT(A) - 2, VISAKHAPATNAM . 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.