Sew Bellary Highways Limited, Hyderabad V. ITO., Ward-3(1), Hyderabad

ITA 653/Hyd/2022

AI Insights

Sew Bellary Highways Ltd filed an appeal against the order of the CIT (A) NFAC, which had dismissed their earlier appeal as withdrawn. The original dispute arose from the income tax assessment for the year 2018-19, where the assessee's return was initially processed declaring 'nil' income but was later assessed with a substantial income after disallowances and additions. The assessee contested these additions, which were later rectified by the Assessing Officer. Following the rectification, the assessee withdrew their appeal, leading to the CIT (A) NFAC dismissing the appeal as infructuous. The Tribunal, upon reviewing the circumstances, agreed with the CIT (A) NFAC's decision and dismissed the appeal filed by Sew Bellary Highways Ltd.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128920 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 19-04-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 20-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Rectification of order
• Section: 154; 143(3); 143(1); 80IA

Judgement Text

ITA 653 of 2022 Sew Bellary Highways Ltd Hyderabad Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A ‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member ITA No.653/Hyd/2022 Assessment Year: 2018-19 Sew Bellary Highways Ltd Hyderabad PAN:AAOCS6549K Vs. Income Tax Officer Ward 3(1) Hyderabad (Appellant) (Respondent) Assessee by : N o n e Revenue by: Shri KPRR Murthy, CIT(DR) Date of hearing: 20/04/2023 Date of pronouncement: 25/04/2023 ORDER Per R.K. Panda, A.M This appeal filed by the assessee is directed against the order dated 15.07.20.2022 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2018-19. 2. An adjournment application has been filed by the assessee seeking adjournment of the case. However, a perusal of the order of the learned CIT (A) NFAC shows that the assessee had withdrawn the appeal before the CIT (A) NFAC for which the appeal was dismissed as withdrawn. Therefore, we proceed to dispose of the appeal on the basis of the material available on record and after hearing the learned DR. ITA 653 of 2022 Sew Bellary Highways Ltd Hyderabad Page 2 of 4 3. Facts of the case, in brief, are that the assessee company filed its return of income on 17.10.2018 declaring ‘nil’ income after claiming deduction u/s 80IA of Rs.40,04,290/-. The return was processed by the CPC Bengaluru and intimation u/s 143(1) was passed on 21.12.2019 by determining the total income at Rs.11,34,47,280/- after disallowing depreciation allowance of Rs.11,33,82,477/- and making addition of Rs.64,800/- towards delayed deposit of PF. Subsequently, the case was selected for scrutiny and order u/s 143(3) was passed on 5.3.2021 determining the total income of the assessee at Rs.11,75,25,520/- by making an addition of Rs.40,78,240/-. 4. The assessee filed a rectification application stating the assessee is eligible for depreciation allowance of Rs.11,33,82,477/- which was duly allowed in the previous A.Y. It was further submitted that the addition towards the delay in deposit of PF of Rs.64,800/- was made twice i.e., in the orders u/s 143(1) and 143(3). 5. The Assessing Officer accordingly passed rectification order u/s 154 r.w.s. 143(3) determining the total income of the assessee at Rs.40,78,243/- by granting depreciation of Rs.11,33,82,477/- and delayed deposit of PF of Rs.64,800/-. 6. The assessee had filed an appeal before the CIT (A) NFAC against the addition made earlier as per order u/s 143(3).. Subsequently, the assessee before the CIT (A) NFAC filed an application seeking withdrawal of the appeal based on which the learned CIT (A) NFAC allowed the assessee to withdraw the appeal and accordingly dismissed the same by observing as under: ITA 653 of 2022 Sew Bellary Highways Ltd Hyderabad Page 3 of 4 “2. The case was posted for hearing. The assessee SEW BELLARY HIGHWAYS LIMITED vide it's letter dated 23.09.2021 received through ITBA and kept on record, has requested for permission for withdrawal of the appeal. The relevant portion of the letter is reproduced below: "The appellant company is a Special Purpose Vehicle (SP) incorporated for execution of the project work with M/s. Karnataka Road Development Corporation Ltd (KRDCL). For the Assessment Year 2018- 19, its assessment has been completed u/s 143(3) on vide NO: 05.03.2021 DIN ITBA/AST/S/143(3)/2020 21/1031273710(1) by the National e-Assessment Centre, Delhi (enclosed Assessment order as Annexure 1). By aggrieving the Assessment Order, we have filed an appeal on 25.03.2021 and later on received the rectification order dated 01.07.2021 and the issue was settled. Therefore, the appeal filed may kindly be treated as infructuous and the appellant may be permitted to withdraw its appeal." 3. In view of the above, the assessee is permitted to withdraw the appeal. 4. The appeal is treated as dismissed for statistical purposes”. 7. Aggrieved with such order of the learned CIT (A) the assessee is in appeal before the Tribunal by raising the following grounds: “1. The order dt. 15.07.2022 of the learned NFAC CIT(A) is erroneous both on facts and in law. 2. The learned NFAC CIT (A) has erred in dismissing the appeal as withdraw without disposing the grounds of appeal on merits, simply on the basis of withdrawal petition filed by the appellant”. 8. We have heard the learned DR and perused the available material on record. Since the substantial addition was deleted by the Assessing Officer himself in the rectification order, the assessee filed an application before the CIT (A) NFAC seeking permission to withdraw the appeal which the learned CIT (A) NFAC had allowed. Therefore, nothing survives and the grounds raised by the assessee being devoid of merit are dismissed. ITA 653 of 2022 Sew Bellary Highways Ltd Hyderabad Page 4 of 4 9. In the result, appeal filed by the assessee is dismissed. Order pronounced in the Open Court on 25 th April, 2023. Sd/- Sd/- (LALIET KUMAR) JUDICIAL MEMBER (R.K. PANDA) ACCOUNTANT MEMBER Hyderabad, dated 25 th April, 2023. Vinodan/sps Copy to: S.No Addresses 1 M/s. Sew Bellary Highways Ltd, No.6-3-871 Snehalata, Greenlands Road, Begumpet, Hyderabad 500016 2 Income Tax Officer Ward 3(1) Signature Towers, Opp: Botanical Gardens, Kondapur, Hyderabad 500084 3 DR, ITAT Hyderabad Benches 4 Guard File By Order