Dy.CIT, Central Circle-1, Hyderabad V. M/s Prathima Educational Society, Hyderabad

ITA 636/HYD/2014

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0686 (ITAT-HYDERABAD)
• Duration Of Justice: 7 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 10-06-2021
• Assessment Year: 2006-2007
• Appeal Filed On: 04-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B BALAKRISHNA
• Keywords: Income from undisclosed sources
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO S . 634 TO 640 /HYD./201 4 A .Y : 200 4 - 05 TO 2010 - 11 DY.CIT , CENTRAL CIRCLE 1 VS. M/S PRATHIMA EDUCATIONAL SOCIETY [NOW ACIT, CENTRAL CIRCLE - 1] PLOT NO. 213, PRATHIMA HYDERABAD ROAD NO. 1, FILM NAGAR HYDERABAD [PAN: AA ATP3833E ] & I.T.A. NO S . 795 TO 800 /HYD./201 4 A .Y : 2005 - 06 TO 2010 - 11 DY.CIT, CENTRAL CIRCLE 1 VS. SRI B. SRINIVASA RAO [NOW ACI T, CENTRAL CIRCLE - 1] HYDERABAD HYDERABAD [PAN: A D A PB5985C ] (APPELLANT) (RESPONDENT) FOR REVENUE: S RI B. BALAKRISHN A, CIT - D.R. FOR ASSESSEE: SRI K.C. DEVDAS, C.A. DATE OF HEARING : 10 /06/ 2021 DATE OF PRONOUNCEMENT : 15 /0 7 /2021 O R D E R PER S.S. GODARA, J.M. THE INSTANT BATCH OF REVENUES 1 3 APPEALS PERTAINS TO TWIN ASSESSEES NAMELY M/S PRATHIMA EDUCATIONAL SOCIETY (FORMER) AND ITS CHAIRMAN SHRI B . SRINIVASA RAO (LATTER) ASSESSEE; RESPECTIVELY. ITA NOS. 634 TO 640/HYD/14 ALONG WITH ITA NOS. 795 TO 800/HYD/14 AYS 2004 - 05 TO 2010 - 11 DYCIT, CC - 1 VS. M/S PRATHIMA EDUCATIONAL SOCIETY AND SRI B. SRINIVASA RAO, HYD. 2 REVENUES SEVEN APPEAL S ITA 634 TO 640/H/14 QUA THE SAID FORMER ASSESSEE FOR AYS 2004 - 05 TO 2010 - 11 ARISE AGAINST THE CIT(A) - I, HYDERABADS COMMON ORDER DATED 27.01 . 2014 PASSED IN CASE NOS. 0353 TO 0359/CC - 1,HYD./CIT(A) - 1/11 - 12 AND SIX APPEALS ITA 79 5 TO 800/HYD/2014 QUA THE LATTER ASSESSEE FOR AY 2 00 5 - 06 TO 2010 - 11 ARE DIRECTED AGAINST THE VERY CIT(A)S COMMON ORDER DATED 24.02.2014 PASSED IN CASE NOS . 03288 TO 0333/CC - 1/HYD/CIT(A) - I/11 - 12. RELEVANT PROCEEDINGS IN AYS 2004 - 05 TO 2009 - 10 ARE U/S 143(3) RWS 153A AND IN AY 2010 - 11 ARE U/S 143(3) OF T HE INCOME TAX ACT, 1961 [IN SHORT THE ACT]; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2 . BOTH THE LEARNED REPRESENTATIVES STATED AT THE OUTSET THAT THE REVENUES INSTANT APPEALS PERTAIN TO THE SEARCH IN QUESTION DATED 10.09.2009 CARRIED O UT IN THESE TWIN ASSESSEES CASES. LEARNED CIT - DR NEXT INVITED OUR ATTENTION TO THE REVENUES GROUNDS IN ALL THESE ASSESSMENTS FRAMED ON 30 TH DECEMBER, 2011 MAKING VARIOUS ADDITIONS ; MAINLY PERTAINING TO COLLECTION OF CAPITATION FEE AND OTHER UNDISCLOS ED UNACCOUNTED INCOME(S) BASED ON THE SEIZED MATERIAL ANNEXURES A DES/13.2.2017; RESPECTIVELY . 3. THE REVENUE CONTINUED ITS ENDEAVOUR IN SUPPORT OF THE IMPUGNED ADDITIONS INVOLVING VARYING SUMS OF MONEY IN ALL THESE THIRTEEN APPEALS. IT HAS FURTHER FI LED A DETAILED WRITTEN NOTE DATED ITA NOS. 634 TO 640/HYD/14 ALONG WITH ITA NOS. 795 TO 800/HYD/14 AYS 2004 - 05 TO 2010 - 11 DYCIT, CC - 1 VS. M/S PRATHIMA EDUCATIONAL SOCIETY AND SRI B. SRINIVASA RAO, HYD. 3 2 . 4.2018 STRONGLY SUPPORTING THE IMPUGNED ADDITIONS MADE IN ALL THESE AYS IN BOTH ASSESSEES CASES. 4. LEARNED AR ON THE OTHER HAND HAS INVITED OUR ATTENTION TO THE TRIBUNALS COORDINATE BENCH S ORDER IN FORMER ASSESSEES APPEAL ITA 720/HYD/2012 PREFERRED AGAINST THE CIT( E )S ORDER DATED 23 . 02.2012 PASSED U/S 12AA(3) OF THE ACT BASED ON THE VERY SEARCH A S WELL AS SEIZED MATERIAL. LEARNED C OORDINATE BENCHS ORDER IN PARAS 23 ONWARDS SEEMS TO HAVE TAKEN NOTE OF NOT ONLY THE VERY SEIZED MATERIAL BUT ALSO THE ASSESSEES CHAIRMANS SEARCH STATEMENT THAT THE SAME BELONGS TO THIS SOCIETY ONLY, TO CONCLUDE TH AT IT COULD NOT PROVE ANY ILLEGALITY OR IRREGULARITY ON ASSESSEES PART QUA COLLECTION OF CAPITATION FEE /EXCESS FEE. AND ALSO THAT THE DEPARTMENT HAD PREFERRED ITS T AX A PPEAL NO. 472/2014 AGAINST TH E TRIBUNALS ABOVE STATED ORDER BEFORE HONBLE JURISDI CTIONAL HIGH COURT. BOTH THE LEARNED REPRESENTATIVES SUBMITTED VERY FAIRLY THAT THEIR LORDSHIPS HAVE UPHELD THE TRIBUNALS ORDER IN A DETAILED JUDGEMENT DATED 13.7.2014 . A ND THAT THE REVENUES REVIEW APPLICATION AGAINST THE SAME IS ALSO STATED TO BE P ENDING TILL DATE. 5. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE ABOVE NARRATED BACKDROP OF THE CLINCHING FACTS INVOLVED IN THE INSTANT LIS. WE FIND THAT THE TRIBUNALS ORDER IN FORMER ASSESSEES REGISTRATION APPEAL DATED 8.11 . 2013 SEALS THE OU TCOME OF R EVENUES ALL THE SE THIRTEEN APPEALS SINCE SEEKING TO REVIVE THE ASSESSING OFFICERS IDENTICAL ACTION MAKING EXCESS FEE/CAPITATION FEE ADDITION ( S ) BASED ON THE ALLEGED SEIZED MATERIAL ANNEXURES A/PES/13 TO 16 . IT HAS ALREADY BEEN HELD IN LEARNED CO - ORDINATE BENCHS ORDER , THAT THE ITA NOS. 634 TO 640/HYD/14 ALONG WITH ITA NOS. 795 TO 800/HYD/14 AYS 2004 - 05 TO 2010 - 11 DYCIT, CC - 1 VS. M/S PRATHIMA EDUCATIONAL SOCIETY AND SRI B. SRINIVASA RAO, HYD. 4 SAID SEIZED MATERIAL NOWHERE INDICATED ANY SUCH EXCESS RECEIPTS. THE REVENUES PLEA BEFORE SEEKING TO POSTPONE INST ANT BATCH HEARING TILL THE TIME ITS R EVIEW A PPLICATION (SUPRA) IS ADJUDICATED; DOES NOT DESERVE TO BE ACCEPTED. WE ACCORDINGLY ADOPT JUDICIAL CONSISTENCY IN VIEW O F EARLIER LEARNED COORDINATE BENCH S FINDINGS TO AFFIRM CIT(A)S ACTION DELETING THE IMP UGNED ADDITION ( S ) IN ALL THESE CASES . A ND MORE SO WHEN REVENUE ITSELF IS FAIR ENOUGH IN ITS WRITTEN SUBMISSIONS QUOTING THE VERY SEIZED MATERIAL IN SUPPORT OF THE ASSESSMENTS FRAMED . BOTH THESE CIT(A)S ORDER UNDER CHALLENGE, ASSESSEE WISE , STAND UPHE LD THEREFORE . 5.1 . NO OTHER ARGUMENT HAS BEEN RAISED BEFORE US. THESE REVENUES THIRTEEN APPEALS ARE DISMISSED IN ABOVE TERMS . A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. PRONOUNCED IN OPEN COURT ON 15 TH JULY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 15 TH JULY, 2021. * GMV ITA NOS. 634 TO 640/HYD/14 ALONG WITH ITA NOS. 795 TO 800/HYD/14 AYS 2004 - 05 TO 2010 - 11 DYCIT, CC - 1 VS. M/S PRATHIMA EDUCATIONAL SOCIETY AND SRI B. SRINIVASA RAO, HYD. 5 COPY OF THE ORDER FORWARDED TO: 1. DY.CIT, CENTRAL CIRCLE 1 [ACIT, CENTRAL CIRCLE 1 NOW], HYDERABAD. 2. (I) M/S PRATHIMA EDUCATIONAL SOCIETY, PLOT NO. 213, PRATHIMA, FILM NAGAR, H YDERABAD , TELANGANA. ; (II) SHRI B. SRINIVASA RAO, HNO. 293/82/C/172A, MLAS COLONY, ROAD NO .12, BANJARA HILLS, HYDERABAD 500 034, TELANGANA 3. A CIT, CENTRAL RANGE - 1 , HYDERABAD 4. CIT (A) - 1 , HYDERABAD 5. PR.CIT , CENTRAL, HYDERABAD 6 . DR, ITAT, HYDERABAD. 7 . GUARD FILE.