J. Chittibabu (late), L/R. J.V.Ratnmani, Rajahmundry, Hyderabad V. ITO, Ward-10(4), Hyd, Hyderabad

ITA 410/HYD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2412 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-07-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 28-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A SMC : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ITA.NO. 410 /HYD/2016 ASSESSMENT YEAR 2003 - 2004 J. CHITTIBABU (LATE), REPRESENTED BY LEGAL REPRESENTATIVE, SMT. J.V. RATNAMANI, H.NO.74 - 11 - 4, PRAKASH NAGAR, RAJAHMUNDRY. PAN: AFTPJ 9170 L VS. ITO, WARD - 10(4), IT TOWERS, A.C. GUARDS, HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI S. RAMA RAO FOR REVENUE : SMT. SUMAN MALIK, DR DATE OF HEARING : 11.08.2017 DATE OF PRONOUNCEMENT : 08 .11.2017 ORDER PER D. MANMOHAN , VP. PENALTY OF RS.7,88,753/ - LEVIED BY A.O. U/S 271(1)(C) OF THE ACT HAVING BEEN CONFIRMED BY LD. CIT(A), ASSESSEE PREFERRED AN APPEAL BEFORE THE TRIBUNAL, CONTENDING, INTER ALIA, THAT LD. CIT(A) ERRED IN DISPOSING OF THE APPEAL EX - PARTE WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE AND IT WAS ALSO DECIDED WITHOUT BRINGING LEGAL REPRESENTATIVES (LRS) ON RECORD. 2. IT MAY BE NOTICED THAT ASSESSEE HEREIN EXPIRED IN 2014 WHEREAS, THE FIRST APPELLATE AUTHORITY PASSED ORDER ON 31.12.2015. DURING THE COURSE OF HEARING, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT PENALTY WAS LEVIED ON THE STRENGTH OF ADDITIONS MADE BY A.O, WHICH WERE PARTLY CONFIRMED BY LD. CIT(A). HOWEVER, ASSESSEE CARRIED THE MATTER IN FURTHER APPEAL TO THE ITAT AND VIDE IT S ORDER DATED 16.03.2016 THE TRIBUNAL GRANTED RELIEF IN THE FORM OF ACCEPTING THE GENUINENESS OF THE 2 SUNDRY CREDITORS TO THE TUNE OF RS . 18,28, 337/ - AND ATLEAST TO CONSIDER THESE ASPECT S AND ALSO TO BRING THE LRS ON RECORD, PENALTY APPEAL DESERVES TO BE HEARD ON MERITS. 3. I HAVE ALSO HEARD THE LD DR IN THIS REGARD AND CAREFULLY PERUSED THE RECORD. HAVING REGARD TO THE PECULIAR CIRCUMSTANCES OF THE CASE, I DEEM IT FAIR AND REASONABLE TO SET ASIDE THE ORDER OF LD. CIT(A) WITH A DIRECTION TO GIVE ASSESSEE AN OPPORTUNITY TO BRING THE LRS ON RECORD AND TO HEAR THE APPEAL AFRESH, KEEPING IN MIND THE SUBSTANTIAL RELIEF GRANTED BY LD. CIT(A) AS WELL AS ITAT. 4. IN THE RESULT, APPEAL FILED BY ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED I N THE OPEN COURT ON 0 8 T H NOVEMBER, 2017 S D / - (D. MANMOHAN) VICE PRESIDENT HYDERABAD, DATED: 8 T H NOVEMBER , 2017 OKK, SR.PS COPY TO 1. SRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, 3 - 6 - 643, STREET NO.9, HIMAYAT NAGAR, HYDERABAD 500 029. 2. ITO, WARD - 10(4), I.T. TOWERS, A.C. GUARDS, HYDERABAD. 3. CIT(A) - 09 , HYDERABAD. 4. PR. CIT - 6, HYDERABAD. 5. D.R. ITAT A BENCH, HYDERABAD. 6. GUARD FILE