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

ITA 744/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53518 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 27-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO. ASSESSMENT YEAR APPELLANT RESPONDENT 743/HYD/2011 2007-08 M/S. UTTARASHADA BIO- TECH PVT. LTD., HYDERABAD (PANAAACU 6109 M) INCOME-TAX OFFICER(OSD)-3 , CENTRAL RANGE-I, HYDERABAD 744/HYD/2011 2007-08 M/S.VINDHYA GREENLANDS PVT. LTD., HYDERABAD (PANAAHCS 2465 D) INCOME-TAX OFFICER(OSD)-3 , CENTRAL RANGE-I, HYDERABAD 745/HYD/2011 2007-08 M/S. SINDHU GREENLANDS PVT. LTD. , HYDERABAD (PAN AABCV 6774 E) INCOME-TAX OFFICER(OSD)-3 , CENTRAL RANGE-I, HYDERABAD APPELLANT BY : SHRI K.C.DEVDAS RESPONDENT BY : SHRI K.V.N.CHARYA O R D E R PER G.C.GUPTA, VICE PRESIDENT: THESE THREE APPEALS BY THE ASSESSEES FOR THE ASSE SSMENT YEAR 2007-08 ARE DIRECTED AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME-TAX(APPEALS). 2. GROUNDS OF THE ASSESSEE, M/S. UTTARASHADA BIO-T ECH PVT. LTD., HYDERABAD, IN ITA NO.743/HYD/2011, READ AS UN DER- 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS)-VII, HYDERABAD, IN ASSESSING THE SUM OF RS.3,37,43,545 U/S. 68 OF THE INCOM E TAX ACT, 1961 IS WHOLLY UNSUSTAINABLE BOTH ON FACTS AND IN LAW. ITA NO.743-745/H/2011 M/S. UTTARASHADA BIO-TECH PVT. LTD, HYDERABAD & TWO OTHERS 2 2. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS)-VI, HYDERABAD FAILED TO NOTE THAT THE UNSECURED LIABILI TIES OF RS.3,37,43,545 WHICH EMANATED FROM ENTITIES WHO ARE ASSESSED TO INCOME TAX WITH THE CENTRAL CIRCLE, HYDERABAD, W HICH COULD HAVE BEEN VERIFIED FROM THE RECORDS AND THEREFORE C IT(APPEALS) ERRED IN CONFIRMING THE ADDITION OF RS.3,37,43,545. 3. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) VII, HYDERABAD, IN CONFIRMING THE ADDITION OF RS.3, 67,822 TOWARDS ADMINISTRATIVE EXPENSES IS WHOLLY UNSUSTAIN ABLE IN LAW. 4. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) VII , HYDERABAD , ERRED IN CONFIRMING THE ADDITION OF RS. 3,67,822. 5. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) VII , HYDERABAD, FAILED TO NOTE THAT DURING THE ASSESSMEN T AND APPELLATE PROCEEDINGS, THE BOOKS OF ACCOUNTS OF THE APPELLANT WERE WITH THE INVESTIGATING AGENCIES CONSEQUENT TO MATTERS RELATING TO SATYAM COMPUTERS SERVICES LTD., AND THE REFORE, OUGHT TO HAVE HELD THAT THE APPELLANT WAS PREVENTED BY REASONABLE AND SUFFICIENT CAUSES IN NOT PRODUCING B OOKS OF ACCOUNTS TO SUBSTANTIATE THE CLAIM IN RESPECT OF TH E DISALLOWANCE CONFIRMED BY THE CIT(APPEALS)-VII, HYDERABAD. 6. THE APPELLANT DENIES ITS LIABILITY TO BE ASSESSED T O THE LEVY OF INTEREST U/S. 234B. SIMILARLY, GROUNDS OF THE ASSESSEE, M/S.VINDHYA GRE ENLANDS PVT. LTD., IN ITA NO.744/HYD/2011 ARE AS UNDER- 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E TAX(APPEALS)VII, HYDERABAD, IN CONFIRMING THE ADDIT ION OF RS.3,73,06,093 U/S.68 OF THE INCOME-TAX ACT IS WHOL LY UNSUSTAINABLE BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEA LS)-VI, HYDERABAD FAILED TO NOTE THAT THE SUM OF RS.3,73,06 ,093 REPRESENTED UNSECURED LOANS TAKEN FROM M/S. MAYTAS PROPERTIES PVT. LTD., WHICH WAS ASSESSED TO INCOME TAX BY CENTRAL CIRCLE, HYDERABAD AND THESE FACTS COULD HAV E BEEN VERIFIED FORM THE RECORDS AND THEREFORE CIT(APPEALS ) ERRED IN CONFIRMING THE ADDITION OF RS.3,73,06,093. 3. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS ) VII, HYDERABAD FAILED TO NOTE THAT DURING THE ASSES SMENT AND ITA NO.743-745/H/2011 M/S. UTTARASHADA BIO-TECH PVT. LTD, HYDERABAD & TWO OTHERS 3 APPELLATE PROCEEDINGS, THE BOOKS OF ACCOUNT OF THE APPELLANT WERE WITH THE INVESTIGATING AGENCIES CONSEQUENT TO THE MATTERS RELATING TO SATYAM COMPUTER SERVICES LTD., AND THEREFORE OUGHT TO HAVE HELD THAT THE APPELLANT WAS PREVENTED BY REASONABLE AND SUFFICIENT CAUSES IN NOT PRODUCIN G BOOKS OF ACCOUNTS TO SUBSTANTIATE ITS CLAIM IN RESPECT OF T HE DISALLOWANCES CONFIRMED BY THE CIT(APPEALS)-VII, HY DERABAD 4. THE APPELLANT DENIES ITS LIABILITY TO BE ASSESS ED TO THE LEVY OF INTEREST U/S. 234B. SIMILARLY, GROUNDS OF THE ASSESSEE, M/S.SINDHU GREE NLANDS PVT. LTD., IN ITA NO.745/HYD/2011, ARE AS UNDER- 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E TAX(APPEALS)VII, HYDERABAD, IN CONFIRMING THE ADDIT ION OF RS.3,38,52,298 U/S.68 OF THE INCOME-TAX ACT IS WHOL LY UNSUSTAINABLE BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEA LS)-VI, HYDERABAD FAILED TO NOTE THAT THE ENTIRE INCREASE I N UNSECURED LOANS EMANATED FROM M/S. MAYTAS PROPERTIE S PVT. LTD., WHICH WAS ASSESSED TO INCOME TAX BY THE VERY SAME ASSESSING OFFICER AND WHICH COULD HAVE BEEN VERIFI ED FORM THE RECORDS AND THEREFORE ERRED IN CONFIRMING THE A DDITION OF RS.3,38,52,298. 3. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS ) VII, HYDERABAD FAILED TO NOTE THAT DURING THE ASSES SMENT AND APPELLATE PROCEEDINGS, THE BOOKS OF ACCOUNT OF THE APPELLANT WERE WITH THE INVESTIGATING AGENCIES CONSEQUENT TO MATTERS RELATING TO SATYAM COMPUTER SERVICES LTD., AND THER EFORE OUGHT TO HAVE HELD THAT THE APPELLANT WAS PREVENTED BY REASONABLE AND SUFFICIENT CAUSES IN NOT PRODUCING B OOKS OF ACCOUNTS TO SUBSTANTIATE ITS CLAIM IN RESPECT OF TH E DISALLOWANCES CONFIRMED BY THE CIT(APPEALS)-VII, HY DERABAD 4. THE APPELLANT DENIES ITS LIABILITY TO BE ASSESS ED TO THE LEVY OF INTEREST U/S. 234B. 3. LEARNED COUNSEL FOR THE ASSESSEES SUBMITTED TH AT NO PROPER OPPORTUNITY OF HEARING WAS GIVEN TO THE ASSE SSEES BY THE ASSESSING OFFICER AS ITS RECORDS WERE IMPOUNDED BY THE CBI AND WERE RELEASED ONLY AFTER THE ASSESSMENT PROCEEDINGS IN T HESE CASES WERE ITA NO.743-745/H/2011 M/S. UTTARASHADA BIO-TECH PVT. LTD, HYDERABAD & TWO OTHERS 4 COMPLETED. IN THESE FACTS, HE ARGUED THAT IN THE I NTERESTS OF JUSTICE, THE ORDERS OF THE AUTHORITIES BELOW SHOULD BE SET A SIDE AND THESE MATTERS SHOULD BE RESTORED TO THE FILE OF THE ASSES SING OFFICER FOR DE NOVO ASSESSMENT. LEARNED DEPARTMENTAL REPRESENTATI VE 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 IMPOUND ED BY THE CBI AND WERE RELEASED ONLY AFTER THE COMPLETION OF THE ASSESSMENT PROCEEDINGS IN THESE CASES, 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 ASSESS ING OFFICER WITH A DIRECTION TO FRAME THE ASSESSMENTS DE NOVO AFTER AL LOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEES. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, ALL THE THREE APPEALS OF THE ASS ESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 5.8.2011 SD/- SD/ - (CHANDRA POOJARI) (G.C. GUPTA) A CCOUNTANT MEMBER V ICE PRESIDENT DATED 5 TH AUGUST, 2011 COPY FORWARDED TO: 1. M/S. UTTARASHADA BIO-TECH PVT. LTD., PLOT NO.80, ROAD NO.9, JUBILEE HILLS, HYDERABAD 500 033 ITA NO.743-745/H/2011 M/S. UTTARASHADA BIO-TECH PVT. LTD, HYDERABAD & TWO OTHERS 5 2. M/S. VINDHYA GREENLANDS PVT. LTD., PLOT NO.80, ROAD NO.9, JUBILEE HILLS, HYDERABAD 500 033 3. M/S. SINDHU GREENLANDS PVT. LTD., PLOT NO.80, ROAD NO.9, JUBILEE HILLS, HYDERABAD 500 033 4. INCOME TAX OFFICER (OSD)-III, CENTRAL RANGE-I, H YDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) - VII HYDERABAD 4. COMMISSIONER OF INCOME - TAX CENTRAL HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S