M/s. Oceanic Farms P. Ltd, Hyderabad V. The ACIT Central Circle -1, Hyderabad

ITA 457/HYD/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3212 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 18-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B V PRASADA REDDY
• Assessee Lawyers: K C DEVADAS
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.457/HYD/11 : AS STT. YEAR 2007-08 M/S. OCEANIC FARMS (P) LTD., HYDERABAD ( PAN - AAACO 5883 A ) V/S. INCOME - TAX OFFICER, WARD 5(1), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI K.C.DEVA D AS RESPONDENT BY : SHRI B.V.PRASADA REDDY O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YE AR 2007-08 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER - 1. THE ORDER OF THE LEARNED. COMMISSIONER OF INCOME-TA X(APPEALS)- VII, HYDERABAD, IN SUSTAINING THE ADDITION OF RS.1 1,26,355 IS UNSUSTAINABLE BOTH IN FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS)-VII , HYDERABAD HAVING FOUND THAT THE ASSESSING OFFICER ACCEPTED TH E SOURCES FOR THE INCREASE IN FIXED ASSETS ERRED IN CONFIRMING TH E ADDITION OF RS.11,26,355. 3. THE APPELLANT DENIES ITS LIABILITY TO BE ASSESSED T O THE LEVY OF INTEREST U/S. 234B. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE ADDITION OF RS.11.26 LAKHS WAS MADE BY INVOKING THE PROVISIONS OF S.69 OF THE ACT, ALTHOUGH THE AMOUNT WAS NEVER DEBITED TO THE PROFIT AND LOSS ACCOUNT OF THE ASSESSEE AND WAS NOT CLAIMED AS A DEDUCTION BY THE ASSESSEE. HE ITA NO.457/HYD/11 M/S. OCEANIC FARMS (P) LTD., HYDERABAD 2 SUBMITTED THAT THE BASIC FACTS WERE NOT APPRECIATED CORRECTLY BY THE ASSESSING OFFICER AND THE CIT(A). THE LEARNED DEPAR TMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE SUBMISSIONS OF THE LEARNED CIT(A). HE RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE ADDITION OF RS.11.26 LAKHS WAS MADE ON ACCOUNT OF UNEXPLAINED I NVESTMENT IN FIXED ASSETS UNDER S.69 OF THE ACT. THERE IS FORCE IN TH E ARGUMENT OF THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE AMOUNT OF RS.11.2 6 LAKHS WAS NEVER CLAIMED BY THE ASSESSEE AS A DEDUCTION OR DEBITED T O THE PROFIT & LOSS ACCOUNT AND THEREFORE, THERE COULD NOT BE ANY DISAL LOWANCE OF ITS EXPENSES. THE ASSESSEE HAS CLAIMED THAT IT HAS INCURRED EXPEN SES MAINLY FOR THE DEVELOPMENT OF LAND AND MAKING A PROPER SITE FOR IT S HOUSING PROJECT PURPOSE. THE FACTS OF THE CASE NEED TO BE PROPERLY APPRECIATED AND ADJUDICATED UPON. IN THESE FACTS OF THE CASE, THE ISSUE IN THE GROUNDS OF APPEAL OF THE ASSESSEE IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO FRAME A DE-NOVO ASSESSMENT IN ACCORDA NCE WITH LAW, AFTER ALLOWING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE . WE DIRECT ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 8.7.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 8.7.2011 COPY FORWARDED TO: 1. M/S. OCEANIC FARMS (P) LTD., PLOT NO.80, ROAD NO.9, JUBILEE HILLS, HYDERABAD 500 033. ITA NO.457/HYD/11 M/S. OCEANIC FARMS (P) LTD., HYDERABAD 3 2. ASSISTANT COMMISSIONER OF INCOME - TAX , CENTRAL CIRCLE I, HYDERABAD 3. COMMISSIONER OF INCOME-TAX(APPEALS), VII, HYDERA BAD. 4. COMMISSIONER OF INCOME - TAX CENTRAL , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.