M/s Konark Greenlands Private Limited, Hyderabad V. Dy.CIT, Central Circle-8, Hyderabad

ITA 556/HYD/2014

• Counselvise Citation: 55622514 RSA 2014
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 27-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN KATTA
• Assessee Lawyers: S RAMA RAO
• Keywords: Opportunity of being heard
• Section: 2

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.556/HYD/2014 ASSESSMENT YEAR 2008-09 M/S. KONAR GREENLANDS P. LTD., HYDERABAD PAN AABCK-5814-A VS. DCIT, CENTRAL CIRCLE-8 HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE MR. S. RAMA RAO FOR REVENUE MR. KIRAN KATTA DATE OF HEARING 17.07.2014 DATE OF PRONOUNCEMENT 25.07.2014 ORDER PER B. RAMAKOTAIAH, A.M. THIS APPEAL IS PREFERRED BY ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-VII, HYDERABAD DATED 29.01.2014 DISMISSING THE APPEAL AS NOT MAINTAINABLE IN TERMS OF SECTION 249(4)(A) ON THE REASON THAT ASSESSEE FAILED TO PAY THE ADMITTED TAX BEFORE FILING THE APPEAL. 2. THE ASSESSMENT IN THIS CASE WAS COMPLETED ON 02.12.2010 ASSESSING INCOME AT RS.4,39,94,346/- AS AGAINST THE DECLARED INCOME OF RS.4,51,73,100/-. ASSESSEE H OWEVER, DID NOT PAY ANY SELF-ASSESSMENT TAX. ASSESSEE HOWEV ER, FILED APPEAL AGAINST THE ASSESSMENT MADE SINCE THE A.O. T REATED THE INCOME FROM BUSINESS AND PROFESSION AS AGAINST INCO ME UNDER THE HEAD CAPITAL GAINS DECLARED. LD. CIT(A) ON NO TICING THAT ASSESSEE HAS NOT PAID ADMITTED TAX IN TERMS OF PROV ISIONS OF 2 ITA.NO.556/HYD/2014 M/S. KONAR GREENLANDS P. LTD. HYDERABAD SECTION 249(4), ISSUED A SHOW CAUSE NOTICE TO THE A SSESSEE. ASSESSEE SUBMITTED THAT APPEAL WAS FILED WITHOUT PA YMENT OF TAXES BUT SUBSEQUENTLY, CONSEQUENT TO THE ORDER OF COMPANY LAW BOARD DATED 13.01.2011, M/S. IL & FS WAS INDUCT ED INTO M/S. HILL COUNTY PROPERTIES LTD., (HCPL) AND POST INDUCTION, M/S. IL & FS NEGOTIATED FOR SUITABLE ARRANGEMENT FO R PAYMENT OF OUTSTANDING DEMAND IN 14 LAND OWNING SUBSIDIARY COMPANIES, OF WHICH, ASSESSEE-APPELLANT WAS ONE, AN D FINALLY THE TAX PORTION OF THE DEMAND WAS PAID OUT OF THE R EFUND DUE TO M/S. MAYTAS PROPERTIES LTD., 3. LD. CIT(A) HAVING EXAMINED THE FACT THAT TAX PAYMENTS HAVE BEEN PAID BEFORE THE APPEAL WAS TAKEN -UP FOR HEARING BUT CONSIDERED THE PRINCIPLES LAID DOWN BY THE ITAT IN THE CASE OF SMT. BANU BEGUM VS. DCIT, CC-6, HYDERAB AD 22 TAXMANN.COM 235, WAS OF THE OPINION THAT THE LD. CI T(A) DOES NOT HAVE ANY DISCRETION TO ADMIT APPEAL AND ADJUDIC ATE AND THE SAME WAS WITHIN THE POWERS OF HIGHER AUTHORITY LIKE ITAT UNDER SECTION 254 OF THE I.T. ACT TO BE SATISFIED O N REASONS FOR CURING SUCH DEFECTS AND PERMIT ADJUDICATION. IN VI EW OF THE VIEW THE ABOVE THE APPEAL WAS DISMISSED AS NOT ADMI TTED. 4. LD. COUNSEL REFERRING TO THE PAPER BOOK PLACED ON RECORD INFORMED THAT IN OTHER GROUP CASES, THE DELA Y WAS CONDONED BY THE ITAT AND APPEALS WERE RESTORED AND FOLLOWING THAT THIS MATTER ALSO SHOULD BE RESTORED TO THE FIL E OF LD. CIT(A). LD. COUNSEL, PLACED ON RECORD THE ORDERS OF ITAT IN OTHER CASES OF THE GROUP IN ITA.NO.521 TO 532/HYD/2 012 DATED 08.06.2012 IN THE GROUP OF CASES OF NAGAVALLI GREEN LANDS P. LTD., AND OTHERS, IT WAS HELD AT PARA-6 OF THE ORDE R AS UNDER : SINCE THE ISSUE UNDER CONSIDERATION IS IDENTICAL T O THE ONE DECIDED BY THE COORDINATE BENCH IN THE CASE OF BANU BEGUM 3 ITA.NO.556/HYD/2014 M/S. KONAR GREENLANDS P. LTD. HYDERABAD (SUPRA) AND THE ASSESSEE HAVE PAID THE ADMITTED TAX ES ON THE RETURNED INCOMES, RESPECTFULLY FOLLOWING THE SA ID DECISION, WE SET ASIDE THE IMPUGNED ORDERS OF THE C IT(A), AND RESTORE THE MATTER TO THE FILE OF THE CIT(A) TO ADJUDICATE THE APPEALS BEFORE HIM ON MERITS AFTER GIVING REASO NABLE OPPORTUNITY OF HEARING TO THE ASSESSEES AND DECIDE THE SAME AFRESH IN ACCORDANCE WITH LAW. 4.1. RESPECTFULLY FOLLOWING THE SAME, SINCE ADMITT ED TAX HAS BEEN PAID BY THE ASSESSEE AS UNDER, WE DIRECT T HE LD. CIT(A), TO ADJUDICATE THE APPEALS ON MERITS, AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. SL. NO DATE BANK PARTICULARS AMOUNT 1 21.02.2011 ICICI BANK SELF ASSESSMENT TAX 60,49,898 2. 03.06.2011 INDIAN OVERSEAS BANK SELF ASSESSMENT TAX 60,49,898 3. 29.03.2012 INDIAN OVERSEAS BANK SELF ASSESSMENT TAX INTEREST 13,37,017 TOTAL 13,436,813 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.07.2014. SD/- SD/- (ASHA VIJAYARAGHAVAN) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 25 TH JULY, 2014 VBP/- 4 ITA.NO.556/HYD/2014 M/S. KONAR GREENLANDS P. LTD. HYDERABAD COPY TO 1. M/S. KONAR GREENLANDS P. LTD., HILL COUNTY, BACHUPA LLY, MIYAPUR, HYDERABAD 500 072. C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, H.NO.3-6-643, ST. NO.9, HIMAYATNAGAR, HYDERABAD 500 029. 2. DCIT, CENTRAL CIRCLE-8, 8 TH FLOOR, AAYAKAR BHAVAN, HYDERABAD. 3. CIT(A)-VII, HYDERABAD 4. CIT (CENTRAL), HYDERABAD 7. D.R. A BENCH, ITAT, HYDERABAD.