Atluri Travel Air, Hyderabad, Hyderabad V. ITO, Ward-6(2), Hyderabad, Hyderabad

ITA 445/HYD/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2704 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 08-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: A V RAGHURAM
• Keywords: Principle of natural justice
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER I.T.A. NO. 445/HYD/2017 ASSESSMENT YEAR: 2005-06 M/S. ATLURI TRAVEL AIR, HYDERABAD [PAN: AABFFC3021H] VS THE INCOME TAX OFFICER, WARD-6(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHU RAM, AR FOR REVENUE : SMT. SUMAN MALIK, DR DATE OF HEARING : 09-08-2017 DATE OF PRONOUNCEMENT : 09-08-2017 O R D E R PER CHANDRA POOJARI, A.M. : THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-12, HYDERABAD , DATED 23-12-2016. THE ASSESSEE HAS RAISED THE FOLLOWING G ROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED CIT(A) DISMISSING THE APPEAL IS NOT ONLY ERRONEOUS BOTH ON FACTS AND IN LAW BUT IS CONTRARY TO PRINCIPLES OF NATURAL JUSTICE AS THE ORDER HAS BEEN PASSED WITHOUT SERVIC E OF NOTICE AS REQUIRED UNDER LAW. 2. THE LEARNED CIT(A) ERRED IN HOLDING THAT THERE I S NO RESPONSE TO THE NOTICES OF POSTING WITHOUT VERIFYING WHETHER SU CH NOTICES ARE SERVED AT THE GIVEN ADDRESS OR NOT AND THEREBY ERRED IN DISMI SSING THE APPEAL. ITA NO. 445/HYD/17 M/S. ATLURI TRAVEL AIR :- 2 - : 3. THE LEARNED CIT(A) OUGHT TO HAVE VERIFIED THE AS SESSEE'S RECORDS BEFORE PASSING ORDER TO VERIFY WHETHER THE AO IS RI GHT IN HOLDING THAT THERE IS NO FRESH SUBMISSIONS OR NOT, CONSEQUENT TO THE O RDER OF THE I.T.A.T., AS THE AO HELD THAT THE SAME WERE CONSIDERED IN THE OR DER THAT WAS PASSED GIVING EFFECT TO THE ORDER OF THE CIT PASSED U/S.26 3, THOUGH THE ORDER U/S.263 WAS CONTESTED AND THE HONOURABLE ITAT DIREC TED FOR VERIFYING THE CLAIM, AND THEREBY ERRED IN DISMISSING THE APPEAL. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. 2. THE FACTS OF THE CASE ARE THAT, ON 21-09-2007, THE AS SESSMENT WAS COMPLETED U/S. 143(3) OF THE INCOME TAX ACT [ACT ] ASSESSING THE TOTAL INCOME AT RS. 4,72,540/-. LATER, PROCEEDINGS U/S. 263 WERE INITIATED AND ASSESSMENT WAS COMPLETED U/S. 143(3 ) R.W.S. 263 ON 23-12-2010 ASSESSING TOTAL INCOME AT RS. 26,23, 110/-, BY MAKING A TOTAL ADDITION OF RS. 19,26,420/-. THE ASSES SEE WAS IN APPEAL BEFORE THE ITAT AND VIDE ITS ORDER DATED 04-0 1-2013, ITAT, HYDERABAD BENCH HAD ORDERED FOR SETTING ASIDE THE FILE OF THE AO AND IN PURSUANCE OF THE SAME THE AO FINALIZED THE ORDE R OF GIVING EFFECT TO THE ORDER OF ITAT AND DETERMINED THE TOTAL INCOM E AT RS. 26,33,110/- BY MAKING ADDITION OF RS. 19,26,420 /-. AGAINST THIS THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A). 3. THE CIT(A) WITHOUT ADJUDICATING THE ISSUE-IN-DISPUTE , DISMISSED THE APPEAL OF ASSESSEE IN LIMINE ON ACCOUNT OF NON- APPEARANCE OF ASSESSEE. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN OUR OPINION, CIT(A) OUGHT TO HAVE DECIDED THE APPEAL ON MERITS INSTEAD OF DISMISSING THE APPEAL FOR WANT OF PROSECUTION, AS HE HAS POWER OF ENHANCEMENT ALSO. SI NCE HE FAILED TO DO SO, WE ARE INCLINED TO REMIT THE ENTIRE ISSUE-IN-D ISPUTE TO THE ITA NO. 445/HYD/17 M/S. ATLURI TRAVEL AIR :- 3 - : FILE OF THE CIT(A) FOR FRESH ADJUDICATION AFTER GIVIN G DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF ASSESSEE ALLOWED FOR STATI STICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH AUGUST, 2017 UPON CONCLUSION OF HEARING SD/- SD/- (P. MADHAVI DEVI) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 9 TH AUGUST, 2017 TNMM COPY TO : 1. M/S. ATLURI TRAVEL AIR, C/O. K. VASANT KUMAR, A. V. RAGHU RAM, P. VINOD & M. NEELIMA DEVI, ADVOCATES, 6 10, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-6(2), HYDERABAD. 3. CIT (APPEALS)-12, HYDERABAD. 4. PR.CIT-6, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.