S.Chintakunta Munaiah Ramesh , Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(1), Hyderabad

ITA 722/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2686 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 15-06-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 09-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D J P ANAND
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Business income
• Section: 143(3); 142(1); 143(2)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 722/HYD/2019 A.Y. 2013 - 14 SRI S. CHINTAKUNTA MUNAIAH RAMESH, HYDERABAD. PAN: ACYPC 8722 B VS. DCIT, CIRCLE - 3(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI P. MURALI MOHAN RAO REVENUE BY SHRI DJP ANAND, DR DATE OF HEARING: 15/06/2021 DATE OF PRONOUNCEMENT: 24 /06/2021 ORDER PER A. MOHAN ALANKAMONY, A.M: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 9, HYDERABAD IN APPEAL NO. 10374/CIT(A) - 9, HYD/2018 - 19, DATED 21/3/2019 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE A.Y. 2013 - 14. 2. THE ASSESSEE HAS RAISED THREE GROUNDS IN HIS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - (1). THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2 (2) THE LD. CIT(A) OUGHT TO HAVE ALLOWED THE GROUN D OF APPEAL WITH REGARDS TO THE DISALLOWANCE OF RS. 9,56,520/ - INSTEAD OF DIRECTING THE A.O. TO VERIFY FURTHER. (3) THE APPELLANT MAY ADD, ALTER OR MODIFY ANY OTHER POINTS TO THE GROUNDS OF APPEAL AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL E - FILED HIS RETURN OF INCOME FOR THE A.Y. 2013 - 14 ON 31/3/2015 ADMITTING TOTAL INCOME OF RS. 64,46,510/ - . THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY AND NOTICES U/S.143(2), 142(1) AND 143(2) R.W.S 129 OF THE ACT WERE SERVED UPON THE ASSESSEE. SUBSEQUENTLY, THE LD. A.O. COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT VIDE HIS ORDER DATED 15/03/2016 WHEREIN THE LD. A.O. MADE CERTAIN ADDITIONS VIZ., (I) DISALLOWANCE OF HOUSE TAX PAID AMOU NTING TO RS.9,56,520/ - ; (II) DISALLOWANCE OF IMPROVEMENT COST AMOUNTING TO RS. 6,36,471/ - AND (III) ADDITION IN RESPECT OF BUSINESS INCOME AMOUNTING TO RS. 1,04,502/ - . AGGRIEVED BY THE ORDER OF THE LD. A.O., THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT (A). ON APPEAL, BEFORE THE LD. CIT(A) NONE APPEARED ON BEHALF OF THE ASSESSEE . THEREFORE, T HE LD. CIT(A) AFTER CONSIDERING THE WRITTEN SUBMISSIONS OF THE ASSESSEE PARTLY ALLOWED THE ASSESSEES APPEAL AND GRATED RELIEF TO THE ASSESSEE IN RESPECT OF DISALLOW ANCE OF RS.6,36,471/ - AND ADDITION OF RS. 1,04,502/ - . IN RESPECT OF ADDITION OF RS. 9,56,520/ - MADE BY THE LD. A.O. TOWARDS PAYMENT OF HOUSE TAXES , THE LD. CIT(A) DIRECTED THE LD. A.O. TO VERIFY THE GENUINENESS OF THE PAYMENT OF HOUSE TAX AND GRANT RELIEF . AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE 3 ASSESSEE IS IN APPEAL BEFORE THE US ON THE ISSUE OF ADDITION OF RS. 9,56,520/ - MADE BY THE LD. AO TOWARDS MUNICIPAL TAXES PAID. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US STATING THAT THE LD. CIT (A) H AS PASSED EX - PARTE ORDER WITHOUT PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS FURTHER SUBMITTED THAT THE LD. A.O. HAD ALSO NOT PROVIDED PROPER OPPORTUNITY TO THE ASSESSEE TO FURNISH THE DETAILS IN SUPPORT OF THE MUNICIPAL TAXES PAID . THEREFORE, THE LD AR PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD. AO IN ORDER TO CONSIDER THE ISSUE AFRESH AND TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD . LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SU BMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE BY THE LD. CIT(A) HOWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A). THEREFORE, THE LD. CIT(A) HAD NO OTHER OPTION BUT TO PASS ORDER BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) DO ES NOT CALL FOR ANY INTERFERENCE. 4. WE HAVE HEARD THE RIVAL SUBMISSI ONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FACTS OF THE CASE, WE FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. IT APPEARS THAT THE LD. CIT (A) HAD POSTED THE CASE ON SEVERAL OCCASIONS. HOWEVER, NONE APPEARED ON BEHALF 4 OF THE ASSES SEE BEFORE THE CIT(A) ON THE DATES OF HEARING. THEREFORE, THE LD. CIT (A) WAS LEFT WITH NO OTHER OPTION EXCEPT TO ADJUDICATE THE APPEAL EX - PARTE BASED ON THE MATERIAL AVAILABLE ON RECORD . IN THIS SITUATION, WE DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS AD VANCED BY THE LD. AR. HOWEVER, CONSIDERING THE NATURE OF ISSUE INVOLVED IN THE APPEAL AS WELL AS THE PRAYER OF THE LD. AR AND SINCE THE LD.CIT(A) DOES NOT HAVE POWERS TO REMAND , IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. AO IN ORDER TO CONSIDER THE ISSUE AFRESH AND DECIDE THE SAME ON MERIT . AT THE SAME BREATH, WE ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. REVENUE AUTHORITIES IN THEIR PROCEEDINGS FAILING WHICH THE LD. REVENUE AUTHORITIES SHALL B E AT LIBERTY TO PASS APPROPRIATE ORDERS IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON THE 24 TH JUNE, 2021. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 24 TH JUNE , 2021. OKK COPY TO: - 5 1) SRI S. CHINTAKUNTA MUNAIAH RAMESH C/O. P. MURALI & CO., CHARTERED ACCOUN TANTS, 6 - 3 - 655/2/3, SOMAJIGUDA, HYDERABAD 500 082. 2) DCIT, CIRCLE - 3(1), HYDERABAD. 3) THE CIT (A) - 9, HYDERABAD. 4) THE PR. CIT - 9, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE