M/s. Sravana Agro Pvt.Ltd., Hyd, Hyderabad V. ITO(OSD)-3, Hyderabad

ITA 686/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53693 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-10-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 18-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: K C DEVADAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYA RAGHAVAN, JUDICIAL MEMBER ITA NO.686/HYD/2011 ASSESSMENT YEAR 2007-08 M/S SRAVANA AGRO P LTD. KUKATPALLY,HYDERABAD. (PAN AAHCS1741C) VS THE ITO (OSD) - 3, HYDERABAD APPELLANT RESPONDENT ITA NO.687/HYD/2011 ASSESSMENT YEAR 2007-08 M/S SATABISHA AGRO P LTD. BEGUMPET, HYDERABAD. (PAN AAHCS1693K) VS THE ITO (OSD) - 3, HYDERABAD APPELLANT RESPONDENT ITA NO.688/HYD/2011 ASSESSMENT YEAR 2007-08 M/S NALLAMALLA AGRO P LTD. YOUSUFGUDA, HYDERABAD. (PAN AABCN2520Q) VS THE ITO (OSD) - 3, HYDERABAD APPELLANT RESPONDENT ITA NO.689/HYD/2011 ASSESSMENT YEAR 2007-08 M/S CHAMDRA BHAGA AGRO P LTD. YOUSUFGUDA, HYDERABAD. (PAN AACCC1397D) VS THE ITO (OSD) - 3, HYDERABAD APPELLANT RESPONDENT APPELLANT BY : SHRI K.C. DEVADAS RESPONDENT BY : SHRI V. SRINIVAS DATE OF HEARING : 11.10.2011 DATE OF PRONOUNCEMENT : 13.10.2011 ORDER ITA NO.686 TO 689/H/2011 SRAVANA AGRO & 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 28/1/2011, 18/2/2011, 28/2/2011 & 11/2/2011 RESPECTIVELY AND PERTAINS TO THE ASSESSME NT YEAR 2007-08. 2. IN ITA NO.686/H/2011 GROUND NO.5 AND IN ITA NOS.687 TO 689/HYD/2011 GROUND NO.6 RAISED BY DIFFE RENT ASSESSEES IS COMMON WHICH IS AS FOLLOWS: THE CIT(A)-VII, HYDERABAD, FAILED TO NOTE THAT DURI NG THE ASSESSMENT AND APPELLATE PROCEEDINGS, THE BOOKS OF ACCOUNTS OF THE ASSESSEE WERE WITH THE INVESTIGA TING AGENCIES CONSEQUENT TO MATTERS RELATING TO SATYAM COMPUTERS SERVICES LTD., AND THEREFORE OUGHT TO HAV E HELD THAT THE ASSESSEE WAS PREVENTED BY REASONABLE AND SUFFICIENT CAUSES IN NOT PRODUCING BOOKS OF ACCOUNTS TO SUBSTANTIATE ITS CLAIM IN RESPECT OF TH E DISALLOWANCES CONFIRMED BY THE CIT(A) VII, HYDERABAD. 3. 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: ITA NO.686 TO 689/H/2011 SRAVANA AGRO & OTHERS, HYDERABAD 3 '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.' 3. 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. ITA NO.686 TO 689/H/2011 SRAVANA AGRO & OTHERS, HYDERABAD 4 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT 13 .10.2011 S D/ - (CHANDRA POOJARI) S D/ - (ASHA VIJAYA RAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 13 TH OCTOBER, 2011 COPY FORWARDED TO: 1. M/S SRAVANA AGRO (P) LTD., 392, HMT HILLS, 2 ND VENTURE, OPP. JNTU COLLEGE, KUKATPALLY, HYD. 2. M/S SATABHISHA AGRO PVT. LTD., FLAT NO.102, 1-11- 219/1, SAIKIRAN APARTMENTS, GURUMURTHY LANE, BEGUMPET, HYDERABAD. 3. M/S NALLAMALA AGRO FARMS PVT. LTD., FLAT NO.102, DHANUNJAYA NEST, RAJIV NAGAR, YOSUFGUDA, HYDERABAD. 4. SHRI CHANDRABHAGA AGRO FARMS PVT. LTD., FLAT NO.102, DHANANJAYA NEST, RAJIV NAGAR, YOSUFGUDA, HYDERABAD. 5. C/O PLOT NO.80, ROAD NO.9, JUBILEE HILSS, HYDERABA D- 500 033. 6. THE ITO (OSD), CENTRAL RANGE-1, HYDERABAD 7. THE CIT(A) -VII, HYDERABAD 8. THE CIT, HYDERABAD 9. THE DR, ITAT, HYDERABAD NP/