Modh Visa Gowbhuja Sajna , Hyderabad V. Asst. Commissioner of Income Tax, (Exemptions)-1, Hyderabad

ITA 602/Hyd/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8192 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 03-12-2019
• Assessment Year: 2016-2017
• Appeal Filed On: 24-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Keywords: Depreciation; Set aside
• Section: 12A; 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 602 / HYD /201 9 (ASST. YEAR : 20 1 6 - 1 7 ) MODH. VISA GOWBHUJA SAJNA, C/O VENUGOPAL & CHENOY, CAS, D.NO. 4 - 1 - 889/16/2, TILAK ROAD, HYDERABAD. V S . DCIT (CPC) , BANGALORE . PAN NO. AAETS 4159 A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI B. SATYANARAYANA MURTHY, AR DEPARTMENT B Y : SHRI NILANJAN DEY, SR. DR DATE OF HEARING : 03 / 12 /201 9 . DATE OF PRONOUNCEMENT : 22 / 0 1 /20 20 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 9 , HYDERABAD , DATED 22 /0 2 /201 9 FOR THE ASSESSMENT YEAR 20 1 6 - 1 7 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE IS REGISTERED U/SEC. 12A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') . THE CPC , BANGALORE COMPUTED THE INCOME OF THE ASSESSEE AT RS. 10,68,708/ - AND LEVIED TAX OF RS. 1,85,860/ - WITHOUT GIVING OPPORTUNITY OF HEARING. T HE ASSESSEE - SOCIETY FILED ITS RETURN OF INCOME DECLARING INCOME OF RS. 8,43,834/ - . T HE CPC, BANGALORE 2 ITA NO. 602 / HYD /2019 ( MODH. VISA GOWBHUJA SAJNA ) HAS DISALLOWED AN AMOUNT OF RS. 1,94,895/ - OUT OF DEPRECIATION OF RS. 2,27,901/ - CLAIMED ON THE ASSETS USED BY THE TRUST. THE SALE PROCEEDS ON ELECTRICAL FITTINGS OF RS. 1,42,000/ - WAS CONSIDERED AS INCOME IN PLACE OF PROFIT OF RS. 47,813/ - AFTER ADJUSTING THE WRITTEN DOWN VALUE OF RS. 94,187/ - . THE CPC, BANGALORE ALSO CONSIDERED THE SALE PROCEEDS OF RS. 5.00 LAKHS ON THE SALE OF GENERATOR AS TAXABLE INCOME IN PLACE OF PROFIT DECLARED OF RS. 2,29,601/ - AFTER SETTING OFF OF WRITTEN VALUE OF RS. 2,70,339/ - IN RESPECT OF GENERATOR. THE CPC, BANGALORE HAS DISALLOWED THE AMOUNT OF RS.5 0,884/ - ACCUMULATED U/SEC. 11(1)(A) WITHOUT ASSIGNING ANY REASONS . 3 . ON APPEAL, LD. CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER ( CPC) . 4 . BEFORE ME, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSING OFFICER (CPC) WITHOUT GIVING OPPORTUNITY OF HEARING , ADJUSTMENTS WERE MADE WHICH ARE NOT CORRECT ACCORDING TO LAW . I FIND THAT WHEN THE ASSESSEE IS ENJOYING 12A REGISTRATION WHEN THE ASSESSING OFFICER (CPC) WANTS TO MAKE ADJUSTMENT, IT IS NECESSARY FOR THE ASSESSING O FFICER (CPC) TO GIVE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE . IN THIS CASE, THE ASSESSING OFFICER (CPC) HAS NOT GIVEN OPPORTUNITY OF HEARING TO THE ASSESSEE, IN MY OPINION OPPORTUNITY SHOULD BE GIVEN TO SUBSTANTIATE ITS CASE. 3 ITA NO. 602 / HYD /2019 ( MODH. VISA GOWBHUJA SAJNA ) THEREFORE, I SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND DIRECT THE ASSESSING OFFICER (CPC) TO PASS ASSESSMENT ORDER DENOVO IN ACCORDANCE WITH LAW AFTER PROVIDING REASO NAB LE OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON TH IS 2 2 N D DAY OF JAN. , 20 20 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 2 2 N D JANUARY , 20 20 . VR/ - COPY TO: 1. THE ASSESSEE MODH. VISA GOWBHUJA SAJNA, C/O VENUGOPAL & CHENOY, CAS, D.NO. 4 - 1 - 889/16/2, TILAK ROAD, HYDERABAD. 2. THE REVENUE - DCIT (CPC), BANGALORE. 3. THE CIT ( EXEMPTION), HYDERABAD. 4. THE CIT(A) - 9, HYDERABAD. 5. THE D.R . , HYDERABAD. 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.