Ramya Constructions Ltd., Hyderabad V. THE ITO, Vijayawada

ITA 72/VIZ/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6389 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 10-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M N M NAIK
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained cash credit

Judgement Text

ITA NOS.53 & 72/VIZAG/2016 M/S. RAMYA CONSTRUCTION LIMITED, VIJAYAWADA 1 =- , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NOS.53 & 72/VIZAG/2016 ( / ASSESSMENT YEAR: 2008-09) M/S. RAMYA CONSTRUCTION LIMITED VIJAYAWADA ITO, WARD - 2(1), VIJAYAWADA [PAN NO. AADCR1165K ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI S. RAMA RAO, AR / RESPONDENT BY : SHRI M.N.M. NAIK, DR / DATE OF HEARING : 28.03.2017 / DATE OF PRONOUNCEMENT : 31.03.2017 / O R D E R PER SHRI MANJUNATHA, ACCOUNTANT MEMBER: THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECT ED AGAINST SEPARATE, BUT IDENTICAL ORDERS OF THE CIT(A)-1, GUN TUR DATED 30.11.2015 FOR THE ASSESSMENT YEAR 2008-09. SINCE, THE FACTS ARE IDENTICAL, THEY ARE CLUBBED, HEARD TOGETHER AND DISPOSED-OFF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS.53 & 72/VIZAG/2016 M/S. RAMYA CONSTRUCTION LIMITED, VIJAYAWADA 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E COMPANY IS ENGAGED IN THE BUSINESS OF REAL ESTATE DEVELOPMENT, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2008-09 ON 28.9.2008 ADMITTING NIL TOTAL INCOME. THE ASSESSEE ALSO FILED RETURN OF FRINGE B ENEFITS U/S 115WD OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'TH E ACT') ADMITTING TOTAL VALUE OF FRINGE BENEFITS AT ` 18,547/-. THE CASE HAS BEEN SELECTED FOR SCRUTINY AND ACCORDINGLY, NOTICES U/S 143(2) & 115W E(2) OF THE ACT WERE ISSUED. IN RESPONSE TO NOTICES, THE AUTHORIZED REP RESENTATIVE OF THE ASSESSEE APPEARED FROM TIME TO TOME AND PRODUCED BO OKS OF ACCOUNTS AND OTHER INFORMATION AS CALLED FOR. THE ASSESSMEN T HAS BEEN COMPLETED U/S 143(1) OF THE ACT ON 24.3.2010 AND DE TERMINED GROSS TOTAL INCOME OF ` 14,83,265/- BY MAKING ADDITION OF ` 3,30,000/- TOWARDS UNEXPLAINED CREDITS IN THE NATURE OF CONVER TIBLE BONDS ACCEPTED FROM VARIOUS PERSONS FOR FAILURE TO PROVE THE IDENT ITY AND GENUINENESS OF THE TRANSACTIONS. SIMILARLY, THE ASSESSMENT FOR FR INGE BENEFITS HAS BEEN COMPLETED U/S 115WE(3) OF THE ACT AND DETERMINED TOT AL VALUE OF FRINGE BENEFITS AT ` 4,34,082/- BY MAKING ADDITION OF ` 4,15,532/- TOWARDS TRAVELLING EXPENSES AND MARKETING AND DEVELOPMENT E XPENSES TO THE VALUE OF FRINGE BENEFITS ADMITTED BY THE ASSESSEE. 3. AGGRIEVED BY THE ASSESSMENT ORDERS, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). THE CIT(A) ISSUED NOTICE S U/S 250 OF THE ACT ITA NOS.53 & 72/VIZAG/2016 M/S. RAMYA CONSTRUCTION LIMITED, VIJAYAWADA 3 ON VARIOUS DATES. THE ASSESSEE NEITHER APPEARED NO R FURNISHED ANY DETAILS TO JUSTIFY ITS CASE. THEREFORE, THE CIT(A) CONFIRMED ADDITIONS MADE BY THE A.O. AND DISMISSED APPEALS FILED BY THE ASSESSEE. AGGRIEVED BY THE CIT(A) ORDER, THE ASSESSEE IS IN A PPEAL BEFORE US. 4. AT THE TIME OF HEARING, THE LD. A.R. FOR THE ASS ESSEE SUBMITTED THAT THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A ) BECAUSE OF ILL HEALTH OF MANAGING DIRECTOR OF THE COMPANY, HOWEVER , FILED REQUEST FOR ADJOURNMENT OF THE CASE ON THE DATES FIXED FOR HEAR ING. THE CIT(A) WITHOUT CONSIDERING THE REQUEST OF THE ASSESSEE FOR ADJOURNMENT DISMISSED THE APPEAL FILED BY THE ASSESSEE EX-PARTE , THEREFORE, REQUESTED TO GIVE ONE MORE OPPORTUNITY TO FILE NECE SSARY DETAILS TO JUSTIFY ITS CASE. THE LD. D.R. ON THE OTHER HAND D ID NOT RAISE ANY OBJECTIONS. 5. HAVING HEARD BOTH THE SIDES AND CONSIDERED MATER IAL ON RECORD, WE FIND THAT THE CIT(A) HAS PASSED EX-PARTE ORDER B ECAUSE OF NON- COMPLIANCE FROM THE ASSESSEE TO THE NOTICES ISSUED FIXING THE CASE FOR HEARING. THE LD. A.R. SUBMITTED THAT THE ASSESSEE HAS COLLECTED NECESSARY DETAILS TO JUSTIFY ITS CASE ON MERIT AND HENCE AN OPPORTUNITY MAY BE GIVEN TO FILE ALL THE DETAILS BEFORE THE CIT (A). CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES OF THE CASE, WE DEE M IT APPROPRIATE TO SET ASIDE THE ISSUES TO THE FILE OF THE CIT(A) AND DIRECT THE CIT(A) TO ITA NOS.53 & 72/VIZAG/2016 M/S. RAMYA CONSTRUCTION LIMITED, VIJAYAWADA 4 CONSIDER THE ISSUES ON MERITS AFTER AFFORDING AN OP PORTUNITY OF HEARING TO THE ASSESSEE. NEEDLESS TO SAY, THE ASSESSEE IS DIR ECTED TO FILE NECESSARY EVIDENCES WITHOUT SEEKING ANY ADJOURNMENT. 6. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE IN ITA NOS.53 & 72/VIZAG/2016 ARE ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT O N 31 ST MAR17. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER # /VISAKHAPATNAM: ' /DATED : 31.03.2017 VG/SPS )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT SRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, 3-6-643, STREET NO.9, HIMAYATNAGAR, HYDER ABAD-500 029. 2. / THE RESPONDENT THE ITO WARD-2(1), VIJAYAWADA 3. + / THE PRINCIPAL CIT, VIJAYAWADA 4. + ( ) / THE CIT (A)-1, GUNTUR 5. # . , . , # / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM