Satya Suresh Venkata Attili , Hyderabad V. Asst. Commissioner of Income Tax, Circle-8(1), Hyderabad

ITA 411/Hyd/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0712 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 19-07-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 25-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEEJU GUPTA
• Assessee Lawyers: REMITTING
• Keywords: Application of stay; FORM 26AS
• Section: 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 411 /HYD/201 9 ASSESSMENT YEAR: 2015 - 16 & S.A. NO. 173 /HYD/2019 (ARISING OUT OF ITA NO. 411 /HYD/201 9 ) ASSESSMENT YEAR: 2015 - 16 DR. SATYA SURESH VENKATA ATTILI, HYDERABAD. PAN: AECPA 7716 B VS. ACIT, CIRCLE - 8(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI T. RAMA MURTHY REVENUE BY: SMT. NEEJU GUPTA, DR DATE OF HEARING: 19 /0 7 /2019 DATE OF PRONOUNCEMENT: 19 /0 7 /2019 ORDER PER A. MOHAN ALANKAMONY, AM.: THE ABOVE CAPTIONED APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 8, HYDERABAD DATED 15/02/2019 IN APPEAL NO.10393/CIT(A) - 8/HYD/2018 - 19 PASSED U /S . 143(3) R.W.S 250(6) OF THE ACT FOR THE ASSESSMENT YEAR 2015 - 16. 2 2. THE ASSESSEE HAS ALSO FILED STAY APPLICATION SEEKING STAY FROM RECOVERY OF THE OUTSTANDING DEMAND OF RS. 4,90,220/ - FOR THE RELEVANT ASSESSMENT YEAR. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE ASSESSEE IS A DOCTOR BY PROFESSION AND HAS RECE IVED PROFESSIONAL FEES FROM VARIOUS INSTITUTIONS. IT WAS FURTHER SUBMITTED THAT THE ENTIRE ADDITION MADE BY THE LD. AO WAS DUE TO THE DIFFERENCE BETWEEN THE PROFESSIONAL RECEIPTS DECLARED BY THE ASSESSEE IN HIS RETURN OF INCOME AND PROFESSIONAL FEES STATED IN FORM 26AS. IT WAS FURTHER ARGUED THAT THE INSTITUTIONS FROM WHOM THE ASSESSEE HAD , RECEIVE D/YET TO RECEIVE, PROFESSIONAL FEES W ERE MAINTAINING THEIR BOOKS OF ACCOUNT IN MERCANTILE SYSTEM OF ACCOUNTING AND THEREFORE THE AMOUNT PAYABLE TO THE ASSESSEE W AS ALSO INCLUDED IN THE FORM 26AS . W HILE AS THE ASSESSEE WAS MAINTAINING HIS BOOKS OF ACCOUNT ON CASH BASIS AND THEREFORE, THE AMOUNT RECEIVABLE FROM THOSE INSTITUTIONS WAS NOT INCLUDED IN THE RETURN OF INCOME FILED BY THE ASSESSEE. HOWEVER, IN THE SUBSEQ UENT YEAR THE AMOUNT RECEIVED BY THE ASSESSEE PERTAIN ING TO THE EARLIER ASSESSMENT WAS INCLUDED. IT WAS THEREFORE PLEADED TH A T THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD. AO FOR VERIFYING THE SAME AND TREAT THE FEES RECEIVED DURING THE RELEVANT YEAR AS THE INCOME OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR WHICH IS IN PARTY WITH THE INCOME DISCLOSED BY THE ASSESSEE . THE L D. DR COULD NOT CONTROVERT TO THE SUBMISSION OF THE LD. AR. 3 4. AFTER HEARING BOTH SIDES, WE FIND MERIT IN THE SUBMISSION OF THE LD. AR. SINCE THE ASSESSEE IS MAINTAINING HIS BOOKS OF ACCOUNT IN CASH BASIS AND THE INSTITUTIONS FROM WHERE THE ASSESSEE HAS , RECEIVE /YET TO RECEIVE, FEES FOR PROFESSIONAL SERVICES RENDERED ARE MAINTAINING THEIR BOOKS OF ACCOUNTS IN MERCANTILE BASIS SUCH DISCREPANCY WILL ARISE. IF THE ASSESSEE HAS DISCLOSED THE FEES PERTAINING TO RELEVANT ASSESSMENT YEAR AS HIS INCOME IN THE SUBSEQUENT ASSESSMENT YEAR ON RECEIPT BASIS THEN THE ADDITION MADE BY THE LD. AO FOR THE RELEVANT ASSESSMENT OF THE SAME AMOUNT WILL BE DEVOID OF MERITS. MOREOVER THE LD.CIT(A) HAS ALSO PASSED EX - PARTE ORDER FOR WANT OF PROSECUTION. THEREFORE, IN THE INTEREST OF JUSTICE WE HEREBY RE MIT THE MATTER BACK TO THE FILE OF THE LD. AO FOR FRESH CONSIDERATION AND TO PASS APPROPRIATE ORDER AS PER LAW AND MERITS AND BASED ON OUR DIRECTIONS MENTIONED HEREINABOVE. 5. SINCE WE HAVE DISPOSED OF THE APPEAL OF THE ASSESSEE BY REMITTING BACK THE MATT ER TO THE LD.AO HEREINABOVE, THE STAY APPLICATION FILED BY THE ASSESSEE DOES NOT SURVIVE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE AND THE STAY APPLICATION IS DISMISSED. 4 ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JULY, 2019. SD/ - S D/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 19 /07/ 2019 OKK COPY TO: - 1) SATYA SURESH VENKATA ATTILI, FLAT NO.201, MEENAKSHI TRIDENT TOWERS, GACHIBOWLI, HYDERABAD. 2) ACIT, CIRCLE - 8(1), HYDERABAD. 3) THE CIT(A) - 8, HYDERABAD. 4) THE PR. CIT - 8, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE