ACIT, Central Circle-3, Hyderabad V. Sri Indukuri Syam Prasad Reddy, Hyderabad

ITA 747/HYD/2012

• Counselvise Citation: 74722514 RSA 2012
• Duration Of Justice: 2 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 15-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Deemed to accrue or arise in india; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICAL MEMBER ITA.NO.747/HYD/2012 ASSESSMENT YEAR 2008-2009 THE ACIT, CENTRAL CIRCLE 3 HYDERABAD. VS. SRI INDUKURI SYAM PRASAD REDDY, HYDERABAD PAN AADPI-1621-C (APPELLANT) (RESPONDENT) FOR REVENUE MR. SOLGY JOSE T. KOTTARAM FOR ASSESSEE MR. MOHD. AFZAL DATE OF HEARING 14.08.2014 DATE OF PRONOUNCEMENT 28.08.2014 ORDER PER B. RAMAKOTAIAH, A.M. THE ISSUE IN THE PRESENT APPEAL BY REVENUE IS ON THE DELETION OF AN AMOUNT OF RS.1,30,00,000 BROUGHT TO TAX AS DEEMED INCOME UNDER SECTION 2(22)(E) OF THE I.T. AC T BY THE LD. CIT(A)-VII, HYDERABAD VIDE HIS ORDER DATED 27.02.20 12. 2. ASSESSING OFFICER ON NOTICING THAT ASSESSEE HAS RECEIVED AMOUNTS FROM A COMPANY WHERE HE IS HOLDING SUBSTANTIAL INTEREST, BROUGHT AN AMOUNT OF RS.1,76, 41,993 TO TAX UNDER SECTION 2(22)(E). LD. CIT(A) HAS CONFIRME D AN AMOUNT OF RS.46,41,993 WHILE DELETING AMOUNT OF RS.1,30,00 ,000 ON THE EXPLANATION BY ASSESSEE THAT THE SAID AMOUNT RE PRESENT PAYMENT FOR BUSINESS AND NOT AN ADVANCE/LOAN. IN TH E PROCESS, LD. CIT(A) ACCEPTED ADDITIONAL EVIDENCE IN THE FORM OF RESOLUTIONS AND AFFIDAVIT FROM ASSESSEE WITHOUT GIV ING 2 ITA.NO.747/HYD/2012 SRI INDUKURI SYAM PRASAD REDDY, HYDERABAD. OPPORTUNITY TO A.O. UNDER RULE 46A. REVENUE IS AGGR IEVED ON THESE ISSUES. 3. IT WAS FAIRY ADMITTED BY THE LD. COUNSEL FOR ASSESSEE THAT THE LD. CIT(A) HAS NOT GIVEN ANY OPPO RTUNITY TO A.O. BUT DECIDED THE ISSUES ON MERITS. WITHOUT GOIN G INTO MERITS OF ADDITION/DELETION, SINCE THERE IS VIOLATI ON OF RULE 46A AS CONTENDED IN GROUND NO.3 BY REVENUE, WE ARE OF T HE OPINION THAT A.O. SHOULD GET AN OPPORTUNITY TO EXAMINE THE ADDITIONAL EVIDENCE. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) TO THAT EXTENT AND RESTORE THE ISSUE OF AMOUNT OF RS.1 ,30,00,000 TO THE FILE OF A.O. TO EXAMINE AND DECIDE ACCORDING LY ON THE FACTS AND LAW. ASSESSEE SHOULD BE GIVEN DUE OPPORTU NITY IN SUBSTANTIATING HIS CONTENTIONS. GROUND NO.3 IS ALLO WED. 4. SINCE GROUND NO.3 IS ALLOWED, OTHER GROUNDS RAISED ON MERITS OF THE DELETION NEED NOT BE ADJUDI CATED AT PRESENT. A.O. IS DIRECTED HOWEVER TO EXAMINE THE IS SUE KEEPING IN MIND THE CONTENTIONS BEFORE LD. CIT(A) IN EXAMINING/DECIDING ON THE ADDITIONAL EVIDENCE FILED . 5. IN THE RESULT, APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.08.2014. SD/- SD/- (ASHA VIJAYARAGHAVAN) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 28 TH AUGUST, 2014 VBP/- 3 ITA.NO.747/HYD/2012 SRI INDUKURI SYAM PRASAD REDDY, HYDERABAD. COPY TO 1. THE ACIT, CENTRAL CIRCLE-3, 8 TH FLOOR, AAYAKAR BHAVAN, L.B. STADIUM ROAD, BASHEERBAGH, HYDERABAD-500 004. 2. SRI INDUKURI SYAM PRASAD REDDY, PLOT NO.30, WHIS HPER VALLEY, H.S. DARGA, HYDERABAD. 4. CIT(A)-VII, HYDERABAD. 4. CIT (CENTRAL), HYDERABAD. 5. D.R. B BENCH, ITAT, HYDERABAD.