Asst.CIT., Circle-9(1), Hyderabad V. M/s Sairam Excavators & Loaders, Hyderabad

ITA 510/HYD/2013

• Counselvise Citation: 51022514 RSA 2013
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 10-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K HARITA
• Assessee Lawyers: B SAI PRASAD
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA.NO.510/HYD/2013 ASSESSMENT YEAR 2007-2008 ACIT, CIRCLE 9(1) HYDERABAD VS. M/S. SAIRAM EXCAVATORS & LOADERS, HYDERABAD PAN AANFS2889J (APPELLANT) (RESPONDENT) FOR REVENUE : MS. K. HARITA FOR ASSESSEE : MR. B. SAIPRASAD DATE OF HEARING : 24.02.2014 DATE OF PRONOUNCEMENT : 28.02.2014 ORDER PER B. RAMAKOTAIAH, A.M. THIS IS REVENUE APPEAL AGAINST THE ORDERS OF THE CIT(A), VIJAYAWADA DATED 18.01.2013 FOR THE A.Y . 2007- 2008. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS 1. THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS ON FA CTS AND IS NOT ACCEPTABLE. 2. THE LEARNED CIT(A) ERRED IN NOT TAKING INTO CONSIDE RATION THE LETTER ADDRESSED TO CIT(A), VIJAYAWADA REQUESTI NG HIM TO KINDLY NOT TAKE COGNIZANCE OF THE REMAND REPORT SUBMITTED DIRECTLY TO CIT(A) BY THE ACIT WITHOUT RO UTING THROUGH PROPER CHANNEL AND ALSO WITHOUT PROPER VERIFICATION OF THE FACTS AND WITHOUT EXAMINATION O F BOOKS OF ACCOUNT. 2 ITA.NO.510/HYD/2013 M/S. SAIRAM EXCAVATORS & LOADERS, HYD. 3. THE LEARNED CIT(A) ERRED IN TAKING COGNIZANCE OF TH E REMAND REPORT SUBMITTED DIRECTLY TO CIT(A) BY THE A CIT WITHOUT ROUTING THROUGH PROPER CHANNEL AND ALSO WIT HOUT PROPER VERIFICATION OF THE FACTS AND WITHOUT EXAMIN ATION OF BOOKS OF ACCOUNT, WHEN THE ASSESSMENT WAS COMPLETED BY THE ADDL. CIT, RANGE-9, HYDERABAD. 4. ANY OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF APPEAL. 2. WE HAVE HEARD THE LD.D.R AND LD.COUNSEL. 3. AS CAN BE SEEN FROM THE GROUNDS, THE REVENUE IS AGGRIEVED THAT ACIT HAS NOT SENT THE REPORT THROUGH PROPER CHANNEL AND SO THE LEARNED CIT(A) ERRED IN ACCEPTIN G THE SAME WHILE GIVING RELIEF TO THE ASSESSEE. THE OTHER CONT ENTION IS THAT THE ACIT NOT ONLY HAS SENT THE REPORT DIRECTLY WITH OUT ROUTING THROUGH PROPER CHANNEL BUT ALSO WITHOUT PROPER VERI FICATION OF FACTS AND WITHOUT EXAMINATION OF BOOKS OF ACCOUNTS, WHEN THE ASSESSMENT WAS COMPLETED BY ADDL. CIT, RANGE-9. T HE APPEAL WAS PREFERRED BY ACIT, RANGE-9(1) WHEREAS THE GROUN DS WERE SIGNED BY ADDL. CIT, RANGE-9. WE WERE INFORMED THAT BOTH THE OFFICERS HAVE CONCURRENT JURISDICTION ON THE FILE. IF THIS IS SO, WE ARE UNABLE TO UNDERSTAND HOW GROUND NO.2 IS RELE VANT TO THE PRESENT APPEAL/ THE ISSUE. AS CAN BE SEEN FROM THE GROUNDS ITSELF, THE DEPARTMENT IS NOT CHALLENGING T HE ISSUE AT ALL ON MERITS BUT ONLY ON THE PROCEDURE FOLLOWED BY THE ACIT IN SENDING THE REMAND REPORT DIRECTLY TO THE CIT(A) WI THOUT ROUTING IT THROUGH PROPER CHANNEL. THIS IS A MATTER FOR ADMINISTRATIVE ACTION BUT NOT FOR JUDICIAL INTERFER ENCE. 3.1. AS SEEN FROM THE COPY OF THE REMAND REPORT PL ACED ON RECORD, IT IS NOTICED THAT THE LEARNED CIT(A) DI RECTED THE A.O. TO SUBMIT A REMAND REPORT VIDE LETTER DATED 16.02.2 011. THE 3 ITA.NO.510/HYD/2013 M/S. SAIRAM EXCAVATORS & LOADERS, HYD. ASSESSMENT WAS ORIGINALLY COMPLETED UNDER SECTION 1 44 DETERMINING THE TOTAL INCOME AT RS.2,55,61,560/- AS THERE IS NO COMPLIANCE FROM THE ASSESSEE. AS SEEN FROM THE R EMAND REPORT, THE REPORT WAS SENT ON 09.01.2013 (WHEREAS THE CIT(A) REMANDED VIDE LETTER DATED 16.02.2011) WHICH MEANS FOR ALMOST TWO YEARS THE MATTER WAS PENDING WITH THE A. O. FURTHER, AS SEEN FROM THE REPORT, BOOKS OF ACCOUNTS AND OTHER DETAILS WERE CALLED FOR AND EXAMINED IN DETAIL. THE A.O. REPORTS THAT ON VERIFICATION OF THE BOOKS AND OTHER RELEVA NT LEDGERS TOGETHER WITH VOUCHERS, THE FOLLOWING FACTS WERE NO TICED. THIS MEANS THE A.O. HAS EXAMINED THE FACTS AND SENT A DE TAILED REPORT. NOT ONLY THAT IN HIS 13 PAGE REPORT, THE A. O. DISCUSSED EACH OF THE ISSUE ELABORATELY AND IN SOME RECOMMEND ED PARTIAL CONFIRMATION ALSO. THEREFORE, GROUND NO.3 RAISED BY THE REVENUE HAS NO BASIS AT ALL. 3.2. SINCE, THE CIT(A) HAS BASED HIS ORDER ON THE REMAND REPORT OF THE A.O. AND DEPARTMENT HAVING NOT BEEN QUESTIONED THE ISSUE ON MERITS, THE ISSUE OF NOT SE NDING THE REMAND REPORT THROUGH PROPER CHANNEL DOES NOT CALL FOR ANY ADJUDICATION BY THIS FORUM. IF THE REVENUE IS AGGRI EVED ON THE ISSUE OF NOT FOLLOWING THE ADMINISTRATIVE INSTRUCTI ONS, THEY ARE FREE TO TAKE NECESSARY ADMINISTRATIVE ACTION ON THE A.O. BUT CANNOT COME TO THIS FORUM IN APPEAL FOR ITS GRIEVANCE/COMPLAINT AGAINST THE INDIVIDUAL OFFICERS WHO ARE IGNORING/VIOLATING THE ADMINISTRATIVE INSTRUCTIONS. THEY HAVE TO TAKE REMEDIAL MEASURES INTERNALLY BY WAY OF VIGI LANCE ETC. WITH THESE OBSERVATIONS, APPEAL PREFERRED BY THE RE VENUE IS DISMISSED AS INFRUCTUOUS. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. 4 ITA.NO.510/HYD/2013 M/S. SAIRAM EXCAVATORS & LOADERS, HYD. ORDER PRONOUNCED IN THE OPEN COURT ON 28.02.2 014. SD/- SD/- (ASHA VIJAYARAGHAVAN) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACOUNTANT MEMBER HYDERABAD, DATED 28 TH FEBRUARY, 2014 VBP/- COPY TO : 1. ACIT, CIRCLE 9(1), RANGE-9, FIRST FLOOR, B-BLOCK, I .T. TOWERS, A.C. GUARDS, HYDERABAD 2. M/S. SAIRAM EXCAVATORS & LOADERS, PLOT NO. 149, ROAD NO.9, VASAVI COLONY, RAMAKRISHNAPURAM, SAROORNAGAR, H YDERABAD. 3. CIT(A), VIJAYAWADA 4. C IT - V I , HYDERABAD 5. D.R. ITAT, A BENCH, HYDERABAD.