Chandra Sekhar Dumpa , Hyderabad V. Income Tax Officer, Ward-11(5), Hyderabad

ITA 755/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0853 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 18-02-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 25-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: A V RAGHURAM
• Keywords: Opportunity of being heard; Additional evidence
• Section: 133(6)

Judgement Text

` IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 755 / HYD/201 8 ASSESSMENT YEAR: 20 14 - 15 CHANDRA SEKHAR DUMPA , HYDERABAD. PAN A EKPD 1604H VS. INCOME - TAX OFFICER, WARD 11(5), HYDERABAD. APPELLANT RESPONDENT ASSESSEE BY: S HRI A.V. RAGHURAM REVENUE BY: SHRI NILANJAN DEY DATE OF HEARING: 18 / 0 2 / 201 9 DATE OF PRONOUNCEMENT: 27 / 0 3 /201 9 O R D E R PER S. RIFAUR RAHMAN , AM: T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 5 , HYDERABAD, DATED, 16 /0 2 /201 8 FOR AY 20 14 - 15 . 2. BRIEF FACTS OF THE CASE ARE , ASSESSEE, AN INDIVIDUAL, EN GAGED IN TRADING OF PHARMA CHEMICALS, FILED HIS RETURN OF INCOME ON 31/07/2014 ADMITTING NIL INCOME AFTER CLAIMING LOSS OF RS. 1,97,933/ - . SUBSEQUENTLY, THE CASE WAS TAKEN UP FOR SCRUTINY UNDER CASS GUIDELINES. 2.1 THE AO OBSERVED THAT D URING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE FURNISHED THE COMPUTATION. OF INCOME, BALANCE SHEET, P & L ACCOUNT, FORM NO. 26AS ETC. T HE ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF THE SUNDRY CREDITORS VIZ. NAME, ADDRESS, PAN, CONTACT NO. ETC. ALONG WITH THEIR CONFIRMATIONS. THE DETAILS FURNISHED BY THE ASSESSEE I.T.A. NO. 755 /HYD/1 8 CHANDRA SEKHAR DUMPA 2 WERE EXAMINED. FOR THE PURPOSE OF CROSS VERIFICATION, ENQUIRIES WERE CARRIED OUT TO KNOW THE EXISTENCE, GENUINENESS & CREDITWORTHINESS OF FEW CREDITORS. DURING THE COURSE OF ENQUIRY, THE ADDRESSES PROVI DED BY THE ASSESSEE OF FEW CREDITORS WERE VERIFIED. ON VERIFICATION, NO BUSINESS ACTIVITY WAS FOUND TO BE CARRIED OUT THEREIN. EFFORTS WERE MADE TO KNOW WHETHER BUSINESS ACTIVITIES WERE CARRIED OUT DURING F. Y. 2013 - 14 RELEVANT TO THE A. Y. 2014 - 15. HOWEV ER, THE DETAILS COULD NOT BE ASCERTAINED. KEEPING IN VIEW OF THIS, LETTERS U/ S 133(6) OF THE INCOME TAX ACT, 1961 WERE ADDRESSED TO ALL THE SUNDRY CREDITORS TO FURNISH THE LEDGER EXTRACT OF M/S SIDHI PRARMA CHEM AND M/S CHANDANA CORPORATION OR ITS PROPRIE TOR MR. D. CHANDRASEKHAR FOR THE A.Y. 2014 - 15 RELEVANT TO THE F. Y. 2013 - 14. 2.2 THE AO NOTED THAT H OWEVER, NO INFORMATION WAS RECEIVED IN HIS OFFICE TILL DATE FROM ANY OF THE SUNDRY CREDITORS. IN ABSENCE OF THE SAME, THE SUNDRY CREDITORS SHOWN BY THE ASSESSEE APPEARED TO BE BOGUS IN NATURE. HENCE, THE AMOUNT CREDITED TOWARDS THE SUNDRY CREDITORS DURING THE YEAR UNDER CONSIDERATION WA S TRE ATED AS UNEXPLAINED AND LIABLE TO BE TAXED. THE DETAILS OF AMOUNTS BOOKED/INCREASED AGAINST SUNDRY CREDITORS DURING THE A. Y. 2014 - 15 IS TABULATED HEREUNDER: S. NO. NAME OF SUNDRY CREDITORS CREDIT APPEARING AS ON 31/03/13 CREDIT APPEARING AS ON 31/03/14 INCREASE IN CREDIT DURING THE YEAR. 1 HARSHITA LABORATORIES PVT. LTD. 89,32,351 93,78,651 4,46,300 2 NEITECH COMPUTER SERVICES 0 4,450 4,450 3 PADMA SRI ROADLINES 0 19,000 19,000 4 SREE SAI SRINIVASA CHEMICALS 0 15,94,141 15,94,141 5 TCR CHEMICAL INDUSTRIES 0 23,81,162 23,81,162 I.T.A. NO. 755 /HYD/1 8 CHANDRA SEKHAR DUMPA 3 6 VISHNU ENTERPRISES 1,00,000 1,21,564 21,564 TOTAL 44,66,617 THE AO HELD THAT AS THE EXISTENCE, GENUINENESS & CREDITWORTHINESS OF THE SAID PARTIES COULD NOT BE ESTABLISHED, THE SAME WERE TREATED AS BOGUS AND THE ENTIRE AMOUNT OF RS. 44,66,617/ - WAS TREATED AS INCOME OF THE YEAR AND ADDED BACK TO THE INCOME OF THE AS SESSEE. 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND THE CIT(A) DISMISSED THE APPEAL IN - LIMINE FOR NON - COMPLIANCE BY THE ASSESSEE AGAINST THE NOTICES ISSUED BY THE CIT(A). EVEN ON MERITS, HE HELD THAT THE ASSES SEE FAILED TO SUBSTANTIATE WITH ANY EVIDENCE IN CONTRARY TO THE FINDINGS OF THE AO AND ALSO THE ASSESSEE HAD NOT FILED ANY CONFIRMATION LETTERS BEFORE THE APPELLATE AUTHORITY. 4. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 5. BEFORE US, THE ASSESSEE FILED A PETITION UNDER RULE 29 OF THE APPELLATE TRIBUNAL RULES, 1963 FOR ADMISSION OF THE FOLLOWING ADDITIONAL EVIDENCE IN THE FORM OF PAPER BOOK : 1 CONFIRMATION LETTER FROM M/S HARSHITA LABORATORIES PVT. LTD., DTD. 27/12/2016 ALO NG WITH LEDGER PAGES 4 - 5 2 CONFIRMATION LETTER FROM M/SPADMA SRI ROADLINES, DT. 01/02/2017 PAGE - 6 3 CONFIRMATION LETTER FROM SREE SAI SRINIVASA CHEMICALS ALONG WITH LEDGER PAGES 7 - 9 4 CONFIRMATION LETTER FROM M/S TCR CHEMICAL INDUSTRIES ALONG WITH LEDGER PAGES 10 - 12 5 CONFIRMATION LETTER FROM M/S VISHNU ENTERPRISES ALONG WITH LEDGER DT. 15/06/2016 PAGES 13 - 14 6 BILL ISSUED BY M/S NEITECH COMPUTER SERVICES, DT. 29/03/2014 PAGE 15 7 COPY OF POSTAL RECEIPTS SEND BY SOME OF SUNDRY CREDITORS TO THE AO, DT. PAGE 16 I.T.A. NO. 755 /HYD/1 8 CHANDRA SEKHAR DUMPA 4 31/12/2016 6. LD. DR, ON THE OTHER HAND, RELIED ON THE ORDERS OF REVENUE AUTHORITIES. 7. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE ARE RELEVANT AND GOES TO RO OT OF THE DISPUTE RAISED BY THE ASSESSEE AND HENCE, ADMITTED. SINCE THE AO HAD NO OCCASION TO VERIFY THE ABOVE INFORMATION, FOR THE SAKE OF JUSTICE, WE RE MIT THE ISSUE BACK TO THE FILE OF THE AO WITH A DIRECTION TO EXAMINE THE ADDITIONAL EVIDENCE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN THE MATTER. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 27 TH MARCH , 201 9. SD/ - ( P. MADHAVI DEVI ) JUDICIAL MEMBER SD/ ( S. RIFAUR RAHMAN ) ACCOUNTANT MEMBER HYDERABAD, DATED 27 TH MARCH , 201 9. KV COPY FORWARDED TO: 1. SRI CHANDRA SEKHAR DUMPA, C/O S/SHRI K. VASANTKUMAR, AV RAGHURAM, P. VINOD & M. NEELIMA DEVI, ADVOCATES, 610 BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD 500 001. 2 . IT O , WARD 1 1 ( 5 ), SIGNATURE TOWERS, KONDAPUR, HYDERABAD . 3 . CIT (A) - 5 , HYDERABAD 4. PR. CIT 5 , HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE `