The Co-operative Electric Supply Society Limited , Karimnagar V. Income Tax Officer, Ward-1, Karimnagar

ITA 54/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1636 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 27-01-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 15-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 143(3); 201; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 54 /HYD/201 9 A.Y. 201 4 - 15 THE CO - OPERATIVE ELECTRIC SUPPLY SOCIETY LIMITED KARIMNAGAR [PAN: AA AACO346C ] VS. I.T.O. WARD - 1 KARIMNAGAR ( APPELLANT) (RESPONDENT) ASSESSEE BY: S HRI P. MURALI MOHANA RAO, ADV. REVENUE BY : SRI SUNIL KUMAR PANDEY, DR DATE OF HEARING: 2 7 /01/2021 DATE OF PRONOUNCEMENT: 16 /02/2021 ORDER PER BENCH THIS ASSESSEES APPEAL FOR A.Y.201 4 - 15 ARISES FROM COMMISSIONER OF INCOME TAX (APPEALS) - 6 [CIT(A)], HYDERABADS ORDER DATED 0 3 .0 9 .2018 PASSED IN CASE NO. 10062 /201 8 - 19/ B2/CIT(A) - 6 , INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE DURING THE COURSE OF HEARING THAT ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CA N VASSED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH ITA 54 /HYD/ 19 AY 201 4 - 15 THE CO - OPERATIVE ELECTRIC SUPPLY SOCIETY LTD., KARIMNAGAR 2 THE LOWER AUTHORITIES ACTION ASSESSING INTEREST INCOME OF RS.1,08,95,756/ - ACCRUED ON FIXED DEPOSITS IN ITS HANDS AS TAXABLE INCOME OF THE RELEVANT P REVIOUS YEAR. CASE FILE SUFFICIENTLY SUGGE STS THAT THE INSTANT ISSUE BETWEEN THE PARTIES HAS NOT COME BEFORE THE T RIBUNAL FOR THE FIRST TIME. L EARNED COUNSEL HAS FILED A DETAILED PAPER BOOK COMPRISING OF THIS T RIBUNAL C OORDINATE B ENCH DECISION (S) IN A.Y. 1999 - 2000 TO 2006 - 07, 2012 - 13 TO 2013 - 14 ALONG WITH CIT(A)S SIMILAR ORDERS IN AY 2007 - 08 AS WELL. HIS CASE THEREFORE IS THAT THE IMPUGNED INTEREST INCOME HAS ACCRUED ON THE VERY FIXED DEPOSITS INVESTMENTS WHICH HA D EARLIER BEEN ASSESSED IN THE HANDS OF RURAL ELECTRIFICATION CORPORATION REC AS BELONGING TO THE SAID ENTITY ONLY AND THEREFORE, HE PLEADS FOR ADOPTING JUDICIAL CONSISTENCY IN THE RELEVANT PREVIOUS YEAR AS WELL. 3. MR. PANDEY ON THE OTHER HAND INVITED OUR ATTENTION TO THE ASSESSING OFFICERS ASSESSMENT ORDER DATED 30 TH DECEMB ER, 2016 MAKING THE IMPUGNED ADDITION IN ASSESSEES HANDS IN VIEW OF THE CLINCHING FACT THAT RECS LETTER DATED 03.02.2016 HAD CATEGORICALLY STATED THAT ANY INTEREST INCOME EARNED ON THESE FDS ALSO BELONG TO SIRCILLA SOCIETY ONLY. HE THUS STRONGLY SUPPO RTED BOTH THE LOWER AUTHORITIES ACTION MAKING THE IMPUGNED ADDITION. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS AGAINST AND IN SUPPORT OF IMPUGNED INTEREST INCOME ADDITION. SUFFICE TO , IT IS NOTICED THAT THE IMPUGNED INTEREST I NCOME HAS CONTINUED TO BE ASSESSED IN M/S RECS HANDS ONLY IN ALL THE EARLIER AYS. THERE IS FURTHER NO INDICATION IN THE CASE RECORDS THAT ANY CHANGE HAS TAKEN PLACE IN THE FIXED DEPOSIT INSTRUMENT HOLDER S NAME ( S ) IN THE RELEVANT PREVIOUS YEAR. TH E FACT REMAINS THAT THE ASSESSEE HAS FAILED TO PLACE ON RECORD THE CORRESPONDING DETAILS THAT THE IMPUGNED INTEREST INCOME HAS ALSO BEEN ASSESSED IN M/S RECS HANDS IN THE RELEVANT PREVIOUS YEAR . WE THEREFORE CONCLUDE THAT THE INSTANT SOLE ISSUE REQUIRES NECESSARY FACTUAL VERIFICATION TO THIS LIMITED EXTENT AT THE CIT(A)S END. WE ACCORDINGLY RESTORE TH IS SOLE SUBSTANTIVE ISSUE BACK TO CIT(A) FOR ITA 54 /HYD/ 19 AY 201 4 - 15 THE CO - OPERATIVE ELECTRIC SUPPLY SOCIETY LTD., KARIMNAGAR 3 HIS FRESH APPROPRIATE ADJUDICATION WITHIN THREE EFFECTIVE OPPORTUNI TIES OF HEARING SUBJECT TO ALL JUST EX CEPTIONS . THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 16 /02/2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 16 TH FEBRUARY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. THE CO - OPERATIVE ELECTRIC SUPPLY SOCIETY LTD., 5 - 4 - 91, TAHSIL ROAD, SIRCILLA, KARIMNAGAR 505 301 2. ITO, WARD 1, KARIMNAGAR 3. ACIT, KARIMNAGAR RANGE , KARIMNAGAR 4. CIT(A) - 6 , HYDERABAD. 5. PR.CIT - 2 , HYDERABAD 6. DR, ITAT, HYDERABAD. 7. GUARD FILE.