Shivaraj Kotigari, Vikarabad, Vikarabad V. ITO, Ward-1, Vikarabad, Vikarabad

ITA 607/HYD/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2518 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-02-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 04-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SWAPNA
• Assessee Lawyers: P RAVI SESHAGIRI RAO
• Keywords: Unexplained cash credit; Unexplained investment; Principle of natural justice; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ITA NO. 607/HYD/2017 ASSESSMENT YEAR: 2011-12 SHIVRAJ KOTIGARI, VIKARABAD, PAN ANUPK 6822 D VS. INCOME-TAX OFFICER, WARD 1, VIKARABAD. APPELLANT RESPONDENT ASSESSEE BY: SHRI P. RAVISESHAGIRI RAO REVENUE BY: SMT. N. SWAPNA DATE OF HEARING: 12/02/2018 DATE OF PRONOUNCEMENT: 16/02/2018 O R D E R PER V. DURGA RAO, J.M: THIS APPEAL IS FILED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER DATED 30/12/2016 PASSED BY THE CIT(A) 2 , HYDERABAD, FOR THE AY 2011-12, WHEREIN, THE ASSESSE E HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1) THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS BO TH ON FACTS AND IN LAW. 2) THE LEARNED CIT (A) ERRED IN DECIDING THE APPEAL EX- PARTE WITHOUT PROVIDING FURTHER OPPORTUNITY TO THE APPELLANT. 3) THE LEARNED CIT (A) ERRED IN MAKING ADDITION OF RS.6,62,205/- BY ESTIMATING THE INCOME AT 5% OF THE COST OF SALES. 4) THE LEARNED CIT (A) ERRED IN CONFIRMING THE ACTI ON OF THE ASSESSING OFFICER IN MAKING AN ADDITION OF RS.13,45,103/ - TOWARDS UNEXPLAINED INVESTMENT 5) THE LEARNED CIT (A) ERRED IN CONFIRMING THE ADDI TION OF RS.1,56,520/REPRESENTING THE UNEXPLAINED INVESTM ENT AS CASH DEPOSITS IN THE BANK. I.T.A. NO. 607/HYD/2017 SHIVRAJ KOTIGARI, VIKARABAD 2 6) THE LEARNED CIT (A) ERRED IN CONFIRMING THE ADDI TION OF RS.6,25,000/- MADE BY THE ASSESSING OFFICER TOWA RDS UNEXPLAINED CREDITS. 7) THE LEARNED CIT (A) ERRED IN CONFIRMING THE ADDI TION OF RS.58,450/- MADE BY THE ASSESSING OFFICER TOWARD S UNEXPLAINED CREDITS. 8) ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 2. ON PERUSAL OF RECORD, WE FIND THAT THERE WAS A D ELAY OF 6 DAYS IN FILING THE APPEAL BEFORE US. IN THIS CONNEC TION, ASSESSEE FILED A PETITION REQUESTING FOR CONDONATIO N OF THE SAID DELAY, WHEREIN, IT WAS STATED THAT DURING THE RELEVANT POINT OF TIME ASSESSEE FELL SICK AND WAS UNABLE TO MOVE OUT, HENCE, DELAY IN FILING THE APPEAL AND TO THIS EFFEC T A MEDICAL CERTIFICATE WAS ENCLOSED. IN THIS CONNECTION, ASSES SEE WAS ALSO FILED AN AFFIDAVIT ALSO AFFIRMING THE SAID REA SONS. CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND THE OBJECTION OF THE LD. DR, WE HEREBY CONDONE THE DELA Y AS THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE IN NOT F ILING THE APPEAL WITHIN THE STIPULATED TIME. 3. IN THE PRELIMINARY GROUND, THE ASSESSEE CONTENDE D THAT THE CIT(A) PASSED EX-PARTE ORDER IN BREACH OF PRINC IPLES OF NATURAL JUSTICE AND HENCE THE SAME MAY BE QUASHED A ND SET ASIDE. 4. IN THE COURSE OF HEARING, IT WAS POINTED OUT BY THE LEARNED COUNSEL OF THE ASSESSEE THAT THE LEARNED CI T(A) HAD DECIDED THE MATTERS EX-PARTE. HE, THEREFORE, SUBMIT TED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORE D TO HIS FILE FOR DECIDING GROUNDS OF APPEAL ON MERITS. I.T.A. NO. 607/HYD/2017 SHIVRAJ KOTIGARI, VIKARABAD 3 5. THE LEARNED DR, HOWEVER, OBJECTED TO THE SUBMISS IONS MADE BY THE LD. AR. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE ORDE RS OF REVENUE AUTHORITIES. WE FIND THAT THE CIT(A), THOUG H, THE CIT(A) HAS GIVEN PROPER OPPORTUNITY TO ASSESSEE, TH E ASSESSEE WAS NOT ABLE TO APPEAR BEFORE THE CIT(A). IN VIEW OF THE SUBMISSIONS MADE BY THE LD. COUNSEL FOR THE ASS ESSEE, CONSIDERING THE PRINCIPLES OF NATURAL JUSTICE, ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSES TO SUBS TANTIATE HIS CASE BEFORE THE CIT(A). WE, THEREFORE, REMIT TH E MATTER BACK TO THE FILE OF THE CIT(A) WITH A DIRECTION TO ADJUDICATE THE APPEAL ON MERITS AND IN ACCORDANCE WITH LAW AFTER P ROVIDING REASONABLE OPPORTUNITY OF BEING HEAD TO THE ASSESSE E. WE DIRECT THE ASSESSEE NOT TO TAKE ANY ADJOURNMENT WHE N THE APPEAL IS FIXED FOR HEARING BY THE CIT(A) AND COOP ERATE WITH THE CIT(A) DURING THE APPEAL PROCEEDINGS. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2018. SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER SD/- (V. DURGA RAO) JUDICIAL MEMBER HYDERABAD, DATED 16 TH FEBRUARY, 2018 KV I.T.A. NO. 607/HYD/2017 SHIVRAJ KOTIGARI, VIKARABAD 4 COPY FORWARDED TO: 1. SRI K. SHIVARAJ, PROP. LUCKY WINES, NO. 2-1-47, SHIVAREDDYPET, VIKARABAD - 501101 2. ITO, WARD 1, SRINADHAM COMPLEX, RAMAIAHGUDA, VIKARABAD. 3. CIT(A) -2, HYDERABAD 4 PR. CIT 2, HYDERABAD 5 THE DR, ITAT, HYDERABAD 6 GUARD FILE S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER