Hinduja National Power Corporation Limited, Hyderabad V. Asst. Commissioner of Income Tax, Circle-2(1), Hyderabad

ITA 426/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4037 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 03-08-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DANDA SRINIVAS
• Assessee Lawyers: PRASAD PUTCHA
• Keywords: Prejudicial to interest
• Section: 143(3); 142(1); 144C; 143(2); 13; 92CA; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 426 /HYD/20 20 (ASSESSMENT YEAR : 20 14 - 15 ) M/S. HINDUJA NATIONAL POWER CORPORATION LTD., HYDERABAD. PAN AABCH 2426D ..APPELLANT. VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 2(1), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI PRASAD PUTCHA. RESPONDENT BY : SHRI DANDA SRINIVAS (D.R.) DATE OF HEARING : 2 2 .07. 2021. DATE OF PRONOUNCEMENT : 08.09 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE PCIT - 2, HYDERABAD S ORDER DT. 18.05.2020 PASSED IN CASE NO. 48/PR.CIT - 2/263(08)/2019 - 20 IN PROCEEDINGS UNDER SECTION 263 OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 426/HYD/2020 HEARD BOTH THE PARTIES . C A SE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT ASSESSEE'S INSTANT APPEAL SUFFERS FORM 17 DAYS DELAY IN FILING. LEARNED COUNSEL SUBMITTED THAT DUE TO THE OUTBREAK OF PANDEMIC / COVID 19 , THE ASSESSEE IS UNABLE TO GET THE DOCUMENTS FORM THE DEPARTMENT WHICH CAUSED THE IMPUG NED DELAY IN FILING OF THE INSTANT APPEAL. CASE LAW COLLECTOR LAND ACQUISITION VS. MST. KATIJI & ORS, 1987 AIR 1353 (SC) AND UNIVERSITY OF DELHI VS. UNION OF INDIA, CIVIL APPEAL NO.9488 & 9489/2019 DATED 17 TH DEC., 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. WE ACCORDINGLY HOLD THAT ASSESSEE'S IMPUGNED DELAY OF 17 DAYS IS NEITHER INTENTION NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND HIS CONTROL. THE C AS E IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. 2. RELEVANT FACTS IN THE INSTANT CASE QUA CORRECTNESS OF THE LEARNED PCITS EXERCISE OF THE IMPUGNED SECTION 263 REVISION JURISDICTION ARE IN A VERY NARROW COMPASS. THIS 3 ITA NO. 426/HYD/2020 ASSESSEE IS ENGAGED IN POWER GENE RATION BUSINESS. IT FILED ITS RETURN OF INCOME ON 26.11.2014 DECLARING TAXABLE INCOME OF RS.5,00,16,690. THE ASSESSING OFFICER THEREAFTER FRAMED HIS ASSESSMENT U/S.143(3) R.W.S. 92CA R.W.S. 144C OF THE ACT THEREBY ASSESSING THE ASSESSEE'S TOTAL INCOME AT RS.14,66,52,695. THE PCIT HAS THEREAFTER INVOKED REVISION JURISDICTION VIDE HIS FOLLOWING DETAILED DISCUSSION : 4 ITA NO. 426/HYD/2020 5 ITA NO. 426/HYD/2020 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS. LEARNED COUNSEL VEHEMENTLY CONTENDED DURING THE COURSE OF HEARI NG THAT THE PCIT HAS ERRED IN LAW AND ON FACTS IN EXERCISING HIS 263 REVISION JURISDICTION DESPITE THE FACT THAT THE TAXPAYER HAD PLACED ON RECORD ALL THE RELEVANT MATERIAL ; INCLUDING THAT OF INTEREST INCOME OF RS.26,80,88,566 ON F IXED D EPOSIT WITH BANKS B EFORE THE ASSESSING OFFICER. HE FURTHER ARGUED THAT THE MERE FACT THAT THE ASSESSING OFFICER HAD NOT INCORPORATED THE INSTANT ISSUE IN HIS ASSESSMENT DOES NOT ITSELF FORM THE SOLE REASON 6 ITA NO. 426/HYD/2020 ATTRACTING 263 MECHANISM AS HELD IN GABRIEL INDIA PVT. LTD. (199 3) 203 ITR 108 (BOM) . LEARNED COUNSEL HAS ALSO FILED A DETAILED WRITTEN SUBMISSION NOTE RUNNING INTO 19 PAGES IN SUPPORT OF THE ASSESSEE'S STAND SEEKING TO REVERSE THE IMPUGNED REVISION DIRECTION. 4. WE HAVE GIVEN OUR THOUG H TFUL CONSIDERATION TO RIVAL PLEADINGS AND FIND NO MERIT IN THE ASSESSEE'S STAND. THIS IS FOR THE CLINCHING REASON THAT IT HAS NOT PLACED ON RECORD ANY MATERIAL BEFORE US WHICH COULD SUGGEST THAT THE ASSESSING OFFICER HAD EXAMINED THE IMPUGNED INTEREST INCOME ISSUE BY WAY OF HIS QUESTIONNAIRE(S ) U/S. 142(1) OR U/S. 143(2) OF THE ACT. HON'BLE APEX COURT LAND MARK DECISION IN MALABAR INDUSTRIAL CO. LTD. VS. CIT 243 ITR 83 (SC) HAS SETTLED THE LAW LONG BACK THAT SUCH A FAILURE ON ASSESSING OFFICERS PART IN NOT EVEN EXAMINING THE ISSUE RENDER S AN ASSESSMENT BOTH ERRONEOUS AS WELL AS CAUSING PREJUDICE TO THE INTEREST OF REVENUE. CASE LAW GEE VEE ENTERPRISES VS. CIT (1975) 99 ITR 375 (DELHI) ALSO HELD LONG BACK THAT ASSESSING OFFICER FRAMING ASSESSMENT IS BOTH 7 ITA NO. 426/HYD/2020 INVESTIGATOR AS WELL AS ADJUDICATO R. AND ALSO CIT VS. MUKESH CORPORATION (1978) 111 ITR 312 (GUJ), CIT VS. TOYOTA MOTOR CORPORATION (2008) 306 ITR 49 (DEL) AFFIRMED IN (2008) 306 ITR 52 (SC) RE ITERATE THE WELL ESTABLISHED PRINCIPLE THAT LACK OF ENQUIRY DURING AN ASSESSMENT RENDERS THE SAME AS ERRONEOUS IN SO FAR AS IT IS PREJUDICIAL TO INTEREST OF THE REVENUE. 5. LEARNED COUNSEL HAS NOT FILED ANY MATERIAL BEFORE US INDICATING SUCH AN EXAMINATION MUCH LESS A DETAILED INVESTIGATION ON THE ASSESSING OFFICERS PART REGARDING THE ASSESSEE'S INTEREST INCOME DERIVED FROM FIXED DEPOSITS. WE MAKE IT CLEAR THAT THE ASSESSEE'S WRITTEN SUBMISSIONS FILED ON 19.07.2021 HAVE ALSO PLACED ON RECORD THE T RIBUNALS ORDER S IN ITA NOS.1263 TO 1264/HYD/2018 DT.18.02.2021 FOR THE ASSESSMENT YEARS 2012 - 13 AND 2013 - 14 AND ITA 1084/HYD/2018 DT.30.06.2021 IN SECTION 143(3) PROCEEDINGS REGARDING INTEREST INCOME. T HE SAME ALONG WITH WORKING FOR CLAIM OF DEDUCTIONS U/S. 57(III) AND TREATMENT OF TOTAL INCOME TAX ARE UNABLE TO REBUT THE FACT OF THE 8 ITA NO. 426/HYD/2020 ASSESSIN G OFFICER HAVING FAILED TO EXAMINE THE INSTANT ISSUE IN A.Y. 2014 - 15S REGULAR ASSESSMENT. WE THEREFORE DECLINE THE ASSESSEE'S INSTANT SUBSTANTIVE GRIEVANCES AND LEAVE IT OPEN TO THE ASSESSING OFFICER TO EXAMINE ALL THE CORRESPONDING FACTS IN FURTHERANCE TO LEARNED PCITS DIRECTION S AS PER LAW IN CONSEQUENTIAL PROCEEDINGS. 6 . THIS ASSESSEE'S APPEAL IS DISMISSED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 8TH SEPT . , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 08 .0 9 .2021. * REDDY GP COPY TO : 1. M/S. HINDUJA NATIONAL POWER CORPORATION LTD., C/O GULF OIL CORPN. LTD., POST BAG NO.1, KUKATPALLY, SANATHNAGAR I.E., HYDERABAD - 500 018 2. ACIT, CIRCLE 2(1), HYDERABAD. 3. PR. C I T - 2 , HYDERABAD. 4. CIT(APPEALS) - 2, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.