D.Viswanatha Reddy & Co., Kurnool V. ITO, Kurnool

ITA 528/HYD/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 47735 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 14-07-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 20-04-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.528/HYD/2009 : ASSESSMENT YEA R 2005-06 SHRI D.VISWANATHA REDDY, KURNOOL. (PAN AAEFV 5865 C ) VS INCOME TAX OFFICER, WARD-1 KURNOOL (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.RAMA RAO RESPONDENT BY : SMT. NIVEDITA BISWAS 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 O F INCOME- TAX(APPEALS). 2. EFFECTIVE GROUNDS OF APPEAL OF THE ASSESSEE ARE GROUNDS NO.1 AND 2. THEY ARE REPRODUCED HEREUNDER- 1) THE LEARNED ASSESSING OFFICER WAS NOT JUSTIFIED IN REJECTING THE RESULTS SHOWN BY THE ACCOUNT BOOKS AND ESTIMATI NG THE INCOME BY APPLYING AN 12.5% RATE OF GROSS PROFIT 2) THE ESTIMATED PROFIT OF 12.5% ON ESTIMATED SALES FIGURES WILL BE UNJUSTIFIABLE. IN LARGE CONTRACTS, LIKE TH IS EARNING PROFIT OF 0.5% WILL BE A GREAT DIFFICULT TASK NOWA DAYS DUE TO HEAVY COMPETITION. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS PASSED AN EX-PARTE APPELLATE ORDER WITHO UT GIVING PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND THEREFOR E, ASSESSEE SHOULD BE PROVIDED WITH OPPORTUNITY TO REPRESENT ITS CASE BEF ORE THE CIT(A). HE SUBMITTED THAT THE ASSESSEE HAD REQUESTED TO THE CI T(A) VIDE ITS LETTER ITA NO.529/H/2009 SHRI D.VISWANATHA REDDY, KURNOOL. 2 DATED 5.1.2009 THAT IT HAS PREFERRED AN APPEAL AGAI NST THE ADDITIONS MADE BY THE ASSESSING OFFICER BASED ON THE SALES TA X ASSESSMENT ORDER, AGAINST WHICH AN APPEAL IS PENDING, AND THEREFORE, THE HEARING BEFORE THE CIT(A) MAY BE ADJOURNED. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE OPPOSE D THE SUBMISSION OF THE LEARNED COUNSEL FOR THE ASSESSEE AND SUBMITTED THAT THERE WAS NO VALID REASON FOR NOT REPRESENTING THE CASE BEFORE THE CIT(A) BY THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND THAT IN THE FACTS OF THE CASE, IT SHALL BE IN THE INTERESTS OF JUSTIC E THAT THE ASSESSEE IS PROVIDED WITH ONE MORE OPPORTUNITY OF HEARING BEFOR E THE CIT(A). ACCORDINGLY, THE IMPUGNED ORDER OF THE CIT(A) IS SE T ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE CIT(A) WITH A DIRECT ION TO PASS A DE NOVO APPELLATE ORDER IN ACCORDANCE WITH LAW AND AFTER AL LOWING DUE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. ASSESSEE IS DIRECT ED NOT TO TAKE UNNECESSARY ADJOURNMENTS AND COOPERATE WITH THE AUT HORITIES IN THE MATTER OF DISPOSAL OF ITS APPEAL BEFORE THE CIT(A). WE DIRECT ACCORDINGLY. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 28.7.2011 SD/- SD/- (CHANDRA POOJARI) ( G.C. G UPTA) A CCOUNTANT MEMBER V ICE PRESIDENT DATED THE 28TH JULY, 2011 ITA NO.529/H/2009 SHRI D.VISWANATHA REDDY, KURNOOL. 3 COPY FORWARDED TO: 1. SHRI D.VISWANATHA REDDY (KURNOOL) C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2. INCOME TAX OFFICER, WARD - I, KURNOOL. 3. COMMISSIONER OF INCOME - TAX(APPEALS) IV HYDERABAD 4. COMMISSIONER OF INCOME - TAX II I HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S