M/s. Kishna Greenlands Pvt.Ltd, Hyderabad V. ITO (OSD)-3, Central Range-1, Hyderabad

ITA 561/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53742 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 05-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VENKATESWARA RAO
• Assessee Lawyers: K C DEVADAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYA RAGHAVAN, JUDICIAL MEMBER ITA NO.560/HYD/2011 ASSESSMENT YEAR 2007-08 M/S COASTLINE GREEN LANDS (P) LTD., HYDERABAD (PAN AABCC5529J) VS THE ACIT, (OSD), CENTRAL RANGE-I, HYDERABAD APPELLANT RESPONDENT ITA NO.561/HYD/2011 ASSESSMENT YEAR 2007-08 M/S KRISHNA GREENLANDS (P) LTD., HYDERABAD (PAN AABCK8544K) VS ITO (OSD) - 3, CENTRAL RANGE-I, HYDERABAD APPELLANT RESPO NDENT ITA NO.562/HYD/2011 ASSESSMENT YEAR 2007-08 M/S WARDHA GREEN FIELDS (P) LTD., HYDERABAD (AAACW4877F) VS THE ITO, (OSD) - 3, CENTRAL RANGE-I, HYDERABAD APPELLANT RESPONDENT ITA NO.563/HYD/2011 ASSESSMENT YEAR 2007-08 M/S SWARNAGIRI GREENLANDS (P) LTD., HYDERABAD (AAHCS2608G) VS THE ITO (OSD) - 3, CENTRAL RANGE-I, HYDERABAD APPELLANT RESPONDENT APPELLANT BY : SHRI K.C. DEVADAS RESPONDENT BY : SHRI VENKATESWARA RAO DATE OF HEARING : 19.10.2011 DATE OF PRONOUNCEMENT : 31.10.2011 ORDER ITA NOS. 560 TO 563/H/2011 GREENLANDS (P) LTD. & OTHERS, HYDERABAD 2 PER ASHA VIJAYA RAGHAVAN, J.M. THE ABOVE FOUR APPEALS PREFERRED BY DIFFERENT ASSESSEES ARE DIRECTED AGAINST THE ORDERS PASSED BY THE CIT(A)-VII DATED 31/1/2011, 31/1/2011, 28/1/2011 & 24/2/2011 RESPECTIVELY AND PERTAINS TO THE ASSESSME NT YEAR 2007-08. 2. BEFORE THE ASSESSING OFFICER IT WAS SUBMITTED THAT THE ASSESSEE COMPANY IS ONE OF THE GROUP OF CASES, COMM ONLY KNOWN AS SATYAM GROUP. SHRI B. RAMALINGA RAJU, W AS CHAIRMAN OF M/S SATYAM COMPUTER SERVICES LIMITED TI LL SUCH TIME HE MADE A CONFESSION OF FUDGING THE ACCOU NTS OF THE COMPANY OVER THE LAST MANY YEARS. SHRI B. RAMA LINGA RAJU AND HIS FAMILY MEMBERS HAVE FLOATED SEVERAL CO MPANY AND ASSESSEE COMPANY IS ONE OF THEM. WITH THIS BACKGROUND, VARIOUS GOVERNMENT AGENCIES ARE INVESTI GATING THE MATTERS OF THIS GROUP. IT WAS STATED BY SHRI V IJAY PRASAD, AR THAT RECORDS OF THE ASSESSEE COMPANY HAV E BEEN SEIZED BY THE INVESTIGATING AGENCIES AND ARE CURREN TLY WITH CBI. IN SUPPORT OF HIS CLAIM THAT THE BOOKS OF ACC OUNTS WERE UNDER SEIZURE BY THE INVESTIGATING AGENCIES, H AS PRODUCED A COPY OF THE PANCHANAMA OF CB-CID (GOVT. OF ANDHRA PRADESH). 3. THE CIT(A) WITH RESPECT TO M/S COASTLINE GREE NLANDS (P) LTD., AND M/S KRISHNA GREENLANDS (P) LTD., ARE PARTLY ALLOWED. THE OTHER TWO CASES I.E. M/S SWARNAGIRI GREENFIELDS (P) LTD. & M/S WARDHA GREENFIELDS (P) L TD., THE CIT(A) DISMISSED THE APPEALS OF THE ASSESSEES. ITA NOS. 560 TO 563/H/2011 GREENLANDS (P) LTD. & OTHERS, HYDERABAD 3 4. AGGRIEVED, THE DEPARTMENT IS IN APPEAL BEFORE U S. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, SHRI DEVADAS, POINTED OUT THAT SIMILAR CASES IN SAT YAM GROUP HAVE BEEN DECIDED BY THE THIS TRIBUNAL IN THE CASE OF M/S. UTKARSHADA BIOTECH PVT. LTD. IN I.T.A. NO. 743/HYD/2011 ORDER DATED 5.8.2011 WHEREIN THE ITAT HELD AS UNDER: '3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO PROPER OPPORTUNITY OF HEARING WAS GIVEN TO THE ASSESSEE BY THE ASSESSING OFFICER AS ITS RECORDS WERE IMPOUNDED BY THE CBI AND WERE RELEASED ONLY AFTER THE ASSESSMENT PROCEEDINGS IN THESE CASES WERE COMPLETED. IN THESE FACTS, HE ARGUED THAT IN THE INTEREST OF JUSTICE, THE ORDERS OF THE AUTHORITIES BELOW SHOULD BE SET ASIDE AND THESE MATTER SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR DE NOVO ASSESSMENT. LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN VIEW OF THE FACT THAT THE RECORDS OF THE ASSESSEES WERE IMPOUNDED BY THE CBI AND WERE RELEASED ONLY AFTER THE COMPLETION OF THE ASSESSMENT PROCEEDINGS IN THESE CASE, WE ARE OF THE VIEW THAT IT SHALL BE IN THE INTEREST OF JUSTIC E TO SET ASIDE THE ORDERS OF THE REVENUE AUTHORITIES, AND RESTORE THESE MATTERS TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO FRAME THE ASSESSMENT DE NOVO AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEES. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, ALL THE THREE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES.' ITA NOS. 560 TO 563/H/2011 GREENLANDS (P) LTD. & OTHERS, HYDERABAD 4 6. RESPECTFULLY FOLLOWING THE ORDER OF THE CO-ORDI NATE BENCH OF THIS TRIBUNAL, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES IN THIS CASE AND RESTORE THE ENTIRE MAT TER TO THE FILE OF THE ASSESSING OFFICER FOR DE NOVO ASSESSMEN T. THE ASSESSING OFFICER SHALL AFFORD A REASONABLE OPPORTU NITY OF HEARING TO THE ASSESSEE FOR PRESENTING ITS CASE. 7. IN THE RESULT, THE APPEALS OF THE ASSESSEE IN ITA NO.560 & 561/HYD/2011 ARE PARTLY ALLOWED FOR STATIS TICAL PURPOSES AND IN ITA NOS.562 & 563/HYD/2011, THE ASSESSEES APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 31 .10.2011 S D/ - (CHANDRA POOJARI) S D/ - (ASHA VIJAYA RAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 31 ST OCTOBER, 2011 COPY FORWARDED TO: 1. M/S COASTLINE GREENLANDS (P) LTD., 8-3-222/B/7-35- 36, D-92 & 93, SRI RAMANA ENCLAVE, MADHAPUR, HYD. 2. M/S KRISHNA GREENLANDS P LTD., H NO.B-55, FLAT NO.202, SAI VAISHNAVI VIHAR, VENGALRAO NAGAR, SR NAGAR, HYDERABAD. 3. M/S WARDHA GREENFIELDS P LTD., 2-13/31, SS NAGA R, NARGAR, OPP. HYDERNAGAR, HYDERABAD. 3. M/S SWARNAGIRI GREENFIELDS P LTD., 2-13/31, SS NARGAR, OPP. HYDERNAGAR, HYDERABAD. 4. C/O PLOT NO.80, ROAD NO.9, JUBILEE HILLS, HYDERABA D- 500 033. 5. THE ITO (OSD), 3 CENTRAL RANGE-1, HYDERABAD 6. THE CIT(A) -VII, HYDERABAD 7. THE CIT, HYDERABAD 8. THE DR, ITAT, HYDERABAD NP/