THE ITO, WARD -2(3), Vijayawada V. Shri Gopu Naga Hanuman Prasad, Vijayawada

ITA 436/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1985 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-03-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 03-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

ITA NO.436/VIZAG/2013 SRI GOPU NAGA HANUMAN PRASAD, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.436/VIZAG/2013 ( / ASSESSMENT YEAR: 2009-10) ITO WARD - 2(3) VIJAYAWADA VS. SRI GOPU NAGA HANUMAN PRASAD VIJAYAWADA [PAN: AHO PG7434K ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.N. MURTHY NAIK, DR / RESPONDENT BY : SHRI C. SUBRAHMANYAM, AR / DATE OF HEARING : 21.03.2016 / DATE OF PRONOUNCEMENT : 31.03.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF CIT(A), VIJAYAWADA DATED 26.3.2013 FOR THE ASSESSME NT YEAR 2009-10. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN TYRES AND TUBES IN THE NAME AND STYLE OF M/S. SAI SURYA TYRES. ITA NO.436/VIZAG/2013 SRI GOPU NAGA HANUMAN PRASAD, VIJAYAWADA 2 THE ASSESSEE FILED A RETURN OF INCOME ADMITTING TOT AL INCOME OF RS.4,82,440/-. THE RETURN FILED BY THE ASSESSEE WA S PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CAL LED AS THE ACT). THEREAFTER, AFTER FOLLOWING THE DUE PROCESS, ASSESS MENT WAS COMPLETED U/S 143(3) OF THE ACT. 3. IN THE ASSESSMENT ORDER, THE A.O. HAS NOTED THAT THE ASSESSEE HAS MADE PAYMENTS TO THE EXTENT OF RS.2,49,161/- TO SOM E FINANCIAL INSTITUTIONS, BUT NO TDS WAS DEDUCTED. BEFORE A.O. ASSESSEE HAS NOT EXPLAINED REASONS FOR NON DEDUCTING THE TDS. THERE FORE, THE A.O. HAS DISALLOWED AN AMOUNT OF RS.2,49,161/- AND ADDED TO THE INCOME OF THE ASSESSEE. ON APPEAL, THE LD. CIT(A) BY FOLLOWING T HE HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF TEJA CONSTRUCTIONS V S. CIT (2010) 39 SOT 13 (HYD) AND ALSO SUPREME COURT JUDGEMENT IN THE CA SE OF HINDUSTAN COCA-COLA BEVERAGES PVT. LTD. VS. CIT (2007) 163 TA XMAN 355 DELETED THE ADDITION MADE BY THE A.O. ON APPEAL, THE LD. D .R. HAS SUBMITTED THAT THE CIT(A) WITHOUT GIVING ANY FINDING IN RESPE CT OF THE PAYMENTS EITHER MADE BY THE ASSESSEE OR BY THE DEDUCTEE SIMP LY DELETED THE ADDITION MADE BY THE A.O. 4. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSES SEE HAS SUBMITTED THAT THE ISSUE MAY BE REMITTED BACK TO THE A.O. TO EXAMINE WHETHER ITA NO.436/VIZAG/2013 SRI GOPU NAGA HANUMAN PRASAD, VIJAYAWADA 3 ASSESSEE HAS ALREADY PAID THE AMOUNTS OR DEDUCTEE P AID THE AMOUNTS AND EXAMINE THE SAME AND DECIDE IN ACCORDANCE WITH LAW. WE FIND THAT THE LD. CIT(A) WITHOUT GIVING A FINDING THAT WHETHE R THE ASSESSEE IS ALREADY PAID THE AMOUNTS OR DEDUCTEE PAID THE TAX W ITHOUT SUCH FINDING CIT(A) DELETED THE ADDITION. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER PASSED BY THE CIT(A) AND REMIT THE MATTER BAC K TO THE A.O. FOR EXAMINING THE ISSUE WHETHER THE PAYMENT EITHER MADE BY THE ASSESSEE OR BY THE DEDUCTEE AND THEREAFTER BY FOLLOWING THE CASE LAW IN RESPECT OF TEJA CONSTRUCTIONS (SUPRA) AND HINDUSTAN COCA-COLA BEVERAGES PVT. LTD. (SUPRA) DECIDE IN ACCORDANCE WITH LAW. THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN RESPECT OF EXCESS LIABILITY CLAIMED BY THE AS SESSEE IN THE CASE OF APPOLLO TYRES AND BIRLA TYRES, NO DETAILS WERE FILE D BEFORE THE A.O. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE L D. CIT(A), THE ASSESSEE PRODUCED RECONCILIATION STATEMENTS BEFORE THE LD. CIT(A). THE LD. CIT(A) WITHOUT CALLING THE REMAND REPORT, SIMPL Y ALLOWED THE CLAIM OF THE ASSESSEE. ON THIS COUNT, BOTH THE D.R. & A. R. AGREED THAT THE ISSUE MAY BE REMITTED BACK TO THE A.O. THUS, WE SE T ASIDE THE ORDER PASSED BY THE CIT(A) AND REMIT THE MATTER BACK TO T HE A.O. WITH DIRECTION TO EXAMINE THE DETAILS AND DECIDE IN ACCO RDANCE WITH LAW. ITA NO.436/VIZAG/2013 SRI GOPU NAGA HANUMAN PRASAD, VIJAYAWADA 4 6. SO FAR AS ADDITION IN RESPECT OF RS.1,57,500/- R ELATING TO ADVANCE RECEIVED FROM THE CUSTOMERS, ASSESSEE ONLY FILED CO NFIRMATIONS AND NO DETAILS WERE FILED. THEREFORE, THE A.O. HAS ADDED AMOUNT OF RS.1,57,500/- TO THE INCOME OF THE ASSESSEE. ON AP PEAL, CIT(A) HAS DELETED THE ADDITION. WE FIND THAT THE ASSESSEE HAS NOT FILED ANY DETAILS BEFORE THE A.O. OR BEFORE THE CIT(A) OR EVEN BEFORE US. THE LD. CIT(A) SIMPLY BY CONSIDERING THE CONFIRMATION LETTERS, ADD ITION WAS DELETED. WE FIND THAT THE DETAILS OF THE CUSTOMERS ARE REQUIRED TO DECIDE THAT WHETHER THE ADVANCE RECEIVED BY THE ASSESSEE IS GEN UINE OR NOT. THUS, THE ISSUE IS SET ASIDE AND REMITTED MATTER BACK TO THE A.O. TO EXAMINE THE DETAILS AND DECIDE IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 31 ST MAR16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 31.03.2016 VG/SPS ITA NO.436/VIZAG/2013 SRI GOPU NAGA HANUMAN PRASAD, VIJAYAWADA 5 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO WARD-2(3), VIJAYAWADA 2. / THE RESPONDENT SHRI GOPU NAGA HANUMAN PRASAD, PROP: SAI SURYA TYRES, DR.NO.5403038, PLOT NO.23, BLOCK NO.A-1, 2 ND CROSS ROAD, AUTONAGAR, VIJAYAWADA 3. ) / THE CIT, VIJAYAWADA 4. ) ( ) / THE CIT(A),VIJAYAWADA 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM