Vinar Organics Pvt.Ltd., Sec'bad, Secunderabad V. DCIT, Circle-3(3), Hyderabad, Hyderabad

ITA 558/HYD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6320 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 21-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Additional evidence
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC) : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA.NO.558/HYD/2016 ASSESSMENT YEAR 2010-2011 M/S. VINAR ORGANICS P. LTD., SECUNDERABAD - 17. PAN AABCV2316E VS., THE DCIT, CIRCLE-3(3) HYDERABAD 84. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. K.A. SAI PRASAD FOR REVENUE : MR. K.J. RAO DATE OF HEARING : 14.07.2016 DATE OF PRONOUNCEMENT : 20.072016 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y. 2010-2011. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE CIT(A) IN SUSTAINING THE ADDITION OF RS. 20 LAKHS MADE BY THE A.O. UNDER SECTION 68 OF THE I.T. ACT, 1961. 2. IT IS THE CASE OF THE ASSESSEE THAT THE ASSESSE E HAD FILED THE DETAILS BEFORE THE CIT(A) DURING THE REMAND PRO CEEDINGS BUT THE CIT(A) HAS FAILED TO CONSIDER THE SAME AND HAS SUST AINED THE ADDITION. IT IS ALSO ASSESSEES GRIEVANCE THAT THE ASSESSEE WAS NOT AFFORDED AN OPPORTUNITY TO COUNTER THE CONTENTS OF THE REMAND REPORT. 2 ITA.NO.558/HYD/2015 M/S. VINAR ORGANICS P. LTD., SECUNDERABAD. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-C OMPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING OF BULK DR UG INTERMEDIARIES, FILED ITS RETURN OF INCOME FOR THE RELEVANT A.Y. ON 01.10.2010 DECLARING NIL INCOME. DURING THE ASSES SMENT PROCEEDINGS UNDER SECTION 143(3) OF THE ACT, THE A. O. OBSERVED THAT THE ASSESSEE HAS SHOWN RS.6,20,00,000 AS FRESH LOAN S TAKEN FROM OTHERS. THE ASSESSEE WAS ASKED TO FURNISH THE EVIDE NCE TO PROVE THESE TRANSACTIONS. HOWEVER, THE ASSESSEE WAS NOT A BLE TO FURNISH THE PROOF OF SOURCE OF THE CREDITORS TO THE EXTENT OF RS.20 LAKHS AND THEREFORE, THE A.O. MADE AN ADDITION OF RS.20 LAKHS IN THE HANDS OF THE ASSESSEE. AGGRIEVED, ASSESSEE PREFERRED AN APPE AL BEFORE THE CIT(A) ALONG WITH ADDITIONAL EVIDENCE. THE CIT(A) C ALLED FOR A REMAND REPORT FROM THE A.O. THE A.O. CONDUCTED AN E NQUIRY AND SUBMITTED THE REMAND REPORT STATING THAT THE ASSESS EE HAS FAILED TO FURNISH THE REQUIRED INFORMATION IN SPITE OF PROVID ING SUFFICIENT NUMBER OF OPPORTUNITIES. TAKING THE SAME INTO CONSI DERATION, THE CIT(A) CONFIRMED THE ADDITIONS MADE BY THE A.O. AGG RIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFO RE US. 4. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASS ESSEE SUBMITTED THAT HE HAD FILED ALL THE RELEVANT DETAIL S DURING THE REMAND PROCEEDINGS BUT THE SAME WERE NOT CONSIDERED BY THE A.O. AND THE CIT(A) HAS CONSEQUENTLY MADE THE ADDITION. HE HAS FILED COPY OF THE LETTER DATED 22 ND JANUARY, 2015 ALONG WITH ACKNOWLEDGMENT. 5. LD. D.R. ON VERIFICATION OF FACTS FOUND THAT TH E REMAND REPORT WAS DATED 21.01.2016 THOUGH SUBMITTED TO THE CIT(A) ON 3 ITA.NO.558/HYD/2015 M/S. VINAR ORGANICS P. LTD., SECUNDERABAD. 27.01.2016 WHILE THE INFORMATION WAS FURNISHED BY T HE ASSESSEE ON 22.01.2016 AND THEREFORE, THE SAME COULD NOT BE TAK EN INTO CONSIDERATION BY THE A.O. DURING THE REMAND PROCEED INGS. 6. TAKING THE ABOVE INTO CONSIDERATION, I DEEM IT FIT AND PROPER TO SET ASIDE THE ORDER OF THE CIT(A) AND REM AND THE ISSUE TO THE FILE OF THE A.O. FOR RECONSIDERATION OF THE DET AILS FILED BY THE ASSESSEE IN ACCORDANCE WITH LAW. 7. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20.07. 2016. SD/- (SMT. P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 20 TH JULY, 2016 VBP/- COPY TO : 1 M/S. VINAR ORGANICS P. LTD., SECUNDERABAD 17. C/O CH. PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, STREET NO.1, ASHOKNAGAR, HYDERABA D-020. 2. THE DCIT, CIRCLE-3(3), SIGNATURE TOWER, 7 TH FLOOR, KONDAPUR, OPP. BOTANICAL GARDEN, HYDERABAD. 3. 4. CIT(A)-5, HYDERABAD. PR.CIT-5, HYDERABAD 5. D.R. ITAT B (SMC) BENCH, HYDERABAD 6. GUARD FILE.