Sri Lakshmi Engineers and Constructions , Anantapur V. Asst. Commissioner of Income Tax, Circle-1, Anantapur

ITA 533/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9364 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 15-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SHRI SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 533/HYD/2019 A.Y. 2013 - 14 M/S. SRI LAKSHMI ENGINEERS AND CONSTRUCTIONS, PAN: ABBFS 9800 L VS. ACIT, CIRCLE - I, ANANTAPUR. (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. S. SANDHYA REVENUE BY: SHRI ROHIT MUJUMDAR, DR DATE OF HEARING: 02/03/2021 DATE OF PRONOUNCEMENT: 11 /03/2021 ORDER PER A. MOHAN ALANKAMONY , A.M: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), KURNOOL IN APPEAL NO. 0190/CIT(A)/KNL/2015 - 16, DATED 6/2/2019 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE A.Y. 2013 - 14. THE ASSESSEE HAS RAISED FIVE GROUNDS IN ITS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - 1. THE ORDER F THE LD. CIT(A) IS ERRONEOUS. 2 2. THE LD. CIT(A) ERRED IN DELETING THE APPEAL E X - PARTE WITHOUT CONSIDERING THE WRITTEN SUBMISSIONS AND THE REQUEST FOR ADJOURNMENT. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION MADE BY THE A.O. OF RS. 45,24,000/ - MADE BY APPLYING THE PROVISIONS OF SECTION 40A(3) OF THE IT ACT. 4. THE LD. CIT(A) OUGHT T O HAVE FOUND THAT THE PROVISIONS OF SECTION 40A(3) ARE NOT APPLICABLE AND NO DISALLOWANCE WOULD HAVE BEEN MADE BY THE A.O. 5. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US STATING THAT THE LD. CI T (A) HAS PASSED EX - PARTE ORDER WITHOUT PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD CIT (A) IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD . LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE HOWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR ITS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A). THEREFORE THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS EX - PARTE ORDER BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT CALL FOR ANY INTERFERENCE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATE RIALS ON RECORD. ON EXAMINING THE FACTS OF THE CASE, WE FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. THE LD. CIT (A) HAD POSTED THE CASE ON SEVERAL OCCASIONS. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE 3 BEFORE THE CIT(A) ON THE DATES OF HEARING. T HEREFORE, THE LD. CIT (A) WAS LEFT WITH NO OTHER OPTION EXCEPT TO ADJUDICATE THE APPEAL EX - PARTE. IN THIS SITUATION, WE DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR AND THE ISSUES INVOLVE D IN THE APPEAL, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. CIT (A) IN ORDER TO CONSIDER THE APPEAL AFRESH ON MERITS BY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH, WE ALSO HEREBY CA UTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN THE PROCEEDINGS FAILING WHICH THE LD. CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDING LY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON THE 11 TH MARCH, 2021. SD/ - SD/ - (SMT. P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 11 TH MARCH , 2021. OKK COPY TO: - 4 1) SRI LAKSHMI ENGINEERS AND CONSTRUCTIONS, FLAT NO. 404, ARAVIND ARCADE, SUBASH ROAD, NEW TOWN, ANANTHAPUR. 2) THE ACIT, CIRCLE - 1, THIRD ROAD, ANANTHAPUR. 3) THE CIT(A) , KURNOOL. 4) THE PR. CIT , KURNOOL 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE