M/s. Swarnamukhi Greenfields Pvt.Ltd, Hyderabad V. ITO ( OSD)-3, Hyderabad

ITA 703/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53724 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-10-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 20-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: K C DEVADAS
• Keywords: Unexplained cash credit; Set aside
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, A.M. AND SMT. ASHA VIJAYARAGHAVAN, JM ITA NO.703/HYD/2011 ASSESSMENT YEAR 2007-08 M/S SWARNAMUKHI GREENFIELDS PVT. LTD., HYDERNAGAR, HYDERABAD (PAN AAHCS2591L) VS THE ITO (OSD) - 3, HYDERABAD APPELLANT RESPONDENT APPELLANT BY : SHRI K.C. DEVADAS RESPONDENT BY : SHRI V. SRINIVAS DATE OF HEARING : 31.10.2011 DATE OF PRONOUNCEMENT : ORDER PER ASHA VIJAYARAGHAVAN, JM . THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) VII, HYDERABAD DATE D 25.2.2011 AND PERTAINS TO THE ASSESSMENT YEAR 2007- 08. 2. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSEE M/S SWARNAMUKHI GREENFIELDS PVT. LTD., IS A PRIVATE LIM ITED COMPANY ASSESSED TO TAX FOR THE PAST SEVERAL YEARS. THE ASSESSEE HAS SUBMITTED ITS RETURN OF INCOME AS NIL INCOME. THE ASSESSMENT WAS COMPLETED BY THE ASSESSING OFFIC ER ON AN INCOME OF RS.2,75,00,006/- AS AGAINST THE NIL INCOM E RETURNED BY THE ASSESSEE. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND RAISED THE FOLLOWIN G GROUNDS: ITA NO.703/HYD/2011 M/S SWARNAMUKHI GREENFIELDS P LTD., HYDERABAD 2 A) THE ASSESSING OFFICER OUGHT TO HAVE READ THE BAL ANCE SHEET AS A WHOLE, INSTEAD OF ISOLATING THE ASSETS S IDE OF THE BALANCE SHEET. B) THE ASSESSING OFFICER IS NOT JUSTIFIED IN ADDING THE AMOUNT OF RS.2,75,00,006/- AS UNEXPLAINED CREDITS I N RESPECT OF CURRENT LIABILITIES FOR WHICH THE DETAIL S WERE SUBMITTED AS MENTIONED BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER AND FOR WHICH CONFIRMATIONS WERE F ILED. C) THE ASSESSEE OBJECTS TO THE LEVY OF INTEREST U/S 234B IN AN AMOUNT OF RS.30,54,646/- AS THE LEVY OF SOME IS NOT CORRECT AND AGAINST LAW. D) THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND/OR A LTER AS THE OCCASION MAY REQUIRE. 3. BEFORE THE CIT(A) THE LEARNED AUTHORIZED REPRES ENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSING OFFIC ER IS NOT JUSTIFIED TO MAKE AN ADDITION OF RS.2,75,00,006/- A GAINST THE ALLEGED UNSECURED LOANS. THE ASSESSING OFFICER COU LD HAVE VERIFIED THE ABOVE SAID INFORMATION FROM THE RECORD S AVAILABLE WITH HIM SINCE THE ASSESSEE HAD RECEIVED SAID LOANS FROM M/S MAYTAS PROPERTIES PVT. LTD. WHICH IS ALSO ASSESSED WITH CENTRAL CIRCLE, HYDERABAD. THE LEARNED AUTHORIZED REPRESENTATIVE FURTHER HAS FURNISHED PHOTOCOPY OF T HE ACCOUNTS OF THE LOANS AND SUBMITTED THAT THE LOANS CLAIMED BY THE ASSESSEE ARE TO BE ACCEPTED. 4. THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE . AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. ITA NO.703/HYD/2011 M/S SWARNAMUKHI GREENFIELDS P LTD., HYDERABAD 3 5. WE HEARD THE PARTIES. THE LEARNED COUNSEL FOR THE ASSESSEE, SHRI DEVADAS, POINTED OUT THAT SIMILAR CA SES IN SATYAM 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: '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 ASSESSE ES 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 JUSTICE 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.' 6. 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 ITA NO.703/HYD/2011 M/S SWARNAMUKHI GREENFIELDS P LTD., HYDERABAD 4 OF THE ASSESSING OFFICER FOR DE NOVO ASSESSMENT. T HE ASSESSING OFFICER SHALL AFFORD A REASONABLE OPPORTU NITY OF HEARING TO THE ASSESSEE FOR PRESENTING ITS CASE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT 4 .1 1.2011 SD/- SD/- (CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 4 TH NOV., 2011 COPY FORWARDED TO: 1. M/S SWARNAMUKHI GREENFIELDS PVT. LTD., 2-13/31, SS 2. NAGAR, OPP. HYDERNAGAR, HYDERABAD 3. THE ITO, (OSD)-3, CENTRAL RANGE-I, HYDERABAD 4. THE CIT(A) -VII, HYDERABAD 5. THE CIT, HYDERABAD 6. THE DR, ITAT, HYDERABAD NP/