DCIT, Circle-1, Karimnagar V. M/s Sri Sai Ram Enterprises, Karimnagar

ITA 764/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98423 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 28-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K GUPTA
• Keywords: Bogus purchase; Unexplained cash credit
• Section: 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 764/HYD/2014 ASSESSMENT YEAR: 2009-10 DY. COMMISSIONER OF INCOME- TAX, CIRCLE 1, KARIMNAGAR. VS. M/S SRI SAI RAM ENTERPRISES, KARIMNAGAR. PAN AAGFS 3252 C (APPELLANT) (RESPONDENT) REVENUE BY : SHRI S.K. GUPTA ASSESSEE BY : SHRI K.C. DEVDAS DATE OF HEARING : 26-08-2015 DATE OF PRONOUNCEMENT : 31-08-2015 O R D E R PER SAKTIJIT DEY, J.M.: THIS APPEAL BY DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 21/02/2014 OF LD. CIT(A) III, HYDERABAD FOR THE A Y 2009-10. 2. GROUND NO. 1 BEING GENERAL GROUND IS NOT REQUIRE D TO BE ADJUDICATED UPON. 3. IN GROUND NO. 2, DEPARTMENT HAS CHALLENGED THE D ECISION OF LD. CIT(A) IN DELETING ADDITION MADE ON ACCOUNT OF DISA LLOWANCE U/S 40(A)(IA). 4. BRIEFLY THE FACTS ARE, ASSESSEE A PARTNERSHIP FI RM IS CARRYING ON BUSINESS OF EXECUTION OF CIVIL CONTRACT WORKS. FOR THE AY UNDER DISPUTE, ASSESSEE FILED ITS RETURN OF INCOME ON 30/ 09/2009 DECLARING TOTAL INCOME OF 2,01,90,884. DURING THE ASSESSMENT PROCEEDING, AO NOTICED THAT ASSESSEE HAS DEBITED AN AMOUNT OF RS. 27,32,230 TO THE 2 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES P&L A/C AS FINANCE CHARGES. ON GOING THROUGH THE LE DGER EXTRACT, AO NOTICED THAT INTEREST PAYMENTS WERE MADE TO THE FOL LOWING ORGANSATIONS: S.NO. NAME OF THE BANK INTEREST AMOUNT 1 ICICI 11,24,581 2 HDFC 1,36,690 3 CITI CORP 9,92,209 4 AB BUILDERS FUND CO- OP. SOCIETY 2,36,846 TOTAL 24,90,326 AO OBSERVED THAT THE PROVISIONS OF SECTION 194A ARE NOT APPLICABLE ONLY IN CASE OF INTEREST PAYMENT TO A BANKING COMPA NY, WHICH IS REGULATED BY BANKING REGULATION ACT, 1949. ACCORDIN G TO AO, CITI CORP AND AB BUILDERS FUND CO-OP. SOCIETY ARE NOT C OVERED BY BANKING REGULATION ACT, HENCE, ARE OUTSIDE THE PURV IEW OF PROVISO (III) OF SUB-SECTION (3) OF SECTION 194A. SINCE ASSESSEE HAS NOT DEDUCTED TAX AT SOURCE ON PAYMENTS MADE TO THESE TWO ORGANSA TIONS, HE ACCORDINGLY, INVOKING THE PROVISIONS OF SECTION 40( A)(IA) OF THE ACT, DISALLOWED THE AMOUNT OF RS. 12,29,055. BEING AGGRI EVED OF SUCH DISALLOWANCE, ASSESSEE CHALLENGED THE SAME IN APPEA L PREFERRED BEFORE LD. CIT(A). 5. BEFORE LD. CIT(A), IT WAS SUBMITTED BY ASSESSEE THAT BOTH THE ORGANIZATIONS PAYMENT TO WHICH WERE CONSIDERED FOR DISALLOWANCE BY AO ARE COVERED UNDER PROVISO (III) TO SECTION 194A( 3), HENCE, THERE IS NO REQUIREMENT FOR ASSESSEE TO DEDUCT TAX ON INTERE ST PAYMENTS TO THEM. ALTERNATIVELY, IT WAS ALSO SUBMITTED BY ASSES SEE THAT PROVISION OF SECTION 40(A)(IA) COULD NOT BE APPLIED AS THE EN TIRE FINANCIAL CHARGES WERE PAID DURING THE RELEVANT PY AND NOTHIN G REMAINED OUTSTANDING AT THE END OF THE PY. IN SUPPORT OF SUC H CONTENTION, ASSESSEE RELIED UPON THE DECISION OF THE ITAT IN CA SE OF MERLYIN SHIPPING TRANSPORT VS. ADD. CIT, 136 ITD 58 (VIZAG) , JUDGMENT OF THE HONBLE ALLAHABAD HIGH COURT DATED 09/07/13 IN CASE OF CIT VS. 3 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES VECTOR SHIPPING PVT. LTD. AND DECISION OF THE CHENN AI ITAT BENCH IN CASE OF ITO VS. THEEKATHIR PRESS, ITA NO. 2076/MAD/ 12, DATED 18/09/13. 6. LD. CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE CONCLUDED THAT ORGANSATIONS TO WHOM ASSESSEE HAS MA DE PAYMENTS ARE WITHIN THE PURVIEW OF SECTION 194A(3)(III) OF T HE ACT, HENCE, THERE IS NO REQUIREMENT FOR ASSESSEE TO DEDUCT TAX AT SOU RCE ON THE PAYMENTS MADE TO THEM. ON THAT BASIS, LD. CIT(A) DE LETED THE ADDITION MADE BY AO. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIE S AND PERUSED THE MATERIALS ON RECORD. AS COULD BE SEEN, THE ONLY REASON ON WHICH DISALLOWANCE U/S 40(A)(IA) WAS MADE IS, CITI CORP A ND AB BUILDERS FUND CO-OP. SOCIETY ARE NOT COVERED UNDER BANKING R EGULATION ACT. HOWEVER, ON PERUSAL OF THE RELEVANT STATUTORY PROVI SION, IT IS SEEN THAT BOTH THE ORGANIZATIONS TO WHOM ASSESSEE HAS PAID IN TEREST, BUT, ARE COMING WITHIN THE EXCEPTION PROVIDED U/S 194A(3)(II I) OF THE ACT. THEREFORE, LD. CIT(A) WAS CORRECT IN HOLDING THAT T HERE IS NO REQUIREMENT FOR ASSESSEE TO DEDUCT TAX AT SOURCE ON THE PAYMENTS MADE. EVEN OTHERWISE ALSO, IT IS THE CONTENTION OF ASSESSEE THAT THE ENTIRE FINACE CHARGES WERE PAID BY ASSESSEE DURING THE RELEVANT PY AND NOTHING REMAINED OUTSTANDING AT THE END OF THE PY. THE AFORESAID FACTUAL POSITION HAS NOT BEEN CONTROVERTED BY THE D EPARTMENT. THAT BEING THE CASE, FOLLOWING THE DECISIONS CITED BY LD . AR AS REFERRED TO BY LD. CIT(A), NO DISALLOWANCE U/S 40(A)(IA) CAN BE MADE. IN VIEW OF THE ABOVE, WE UPHOLD THE DECISION OF LD. CIT(A) ON THIS ISSUE BY DISMISSING THE GROUND RAISED. 8. THE NEXT ISSUE, WHICH IS RAISED IN GROUND NOS. 3 TO 7 IS RELATING DELETION BY CIT(A) OF ADDITIONS OF THE AMOUNT OF RS . 45,00,000, 23,64,500 AND RS. 2,97,500 IN RESPECT OF THREE TRAD E CREDITORS. 4 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES 9. BRIEFLY THE FACTS ARE, DURING THE ASSESSMENT PRO CEEDING, AO ON VERIFYING THE BALANCE SHEET AS ON 31/03/09 NOTICED THAT ASSESSEE HAS SHOWN AN AMOUNT OF RS. 4,99,85,846 AS CREDITS FOR S UPPLY OF GOODS AND OUTSTANDING EXPENSES. HE, THEREFORE, CALLED UPO N ASSESSEE TO FURNISH DETAILS LIKE LEDGER EXTRACT, PAN, NAMES AND ADDRESSES OF THE CREDITORS AGAINST WHOM THE LIABILITY HAS BEEN SHOWN . ON VERIFYING THE DETAILS SUBMITTED BY ASSESSEE, AO NOTICED THAT MAJO RITY OF THE CREDITORS ARE INDIVIDUALS AND THE OUTSTANDING LIABI LITY REPRESENTS PAYMENTS TOWARDS SAND, GRAVEL STONE, CRUSHED STONE, ETC. AS NOTED BY AO, AFTER CAUSING NECESSARY ENQUIRY, HE FOUND TH AT THREE CREDITORS HAVE NOT CONFIRMED OF HAVING SUPPLIED THE MATERIALS TO ASSESSEE. THE DETAILS OF THE CREDITORS ARE AS UNDER: S.NO. NAME OF THE CREDITORS AMOUNT (RS.) 1 SRI SYED SADIQ MOHIUDDIN 45,00,000 2 SRI SHANKAR 23,64,500 3 M/S KSL CONSTRUCTIONS 2,97,500 AO OBSERVED, WHEN ENQUIRY WAS CONDUCTED THROUGH AN INSPECTOR, IT WAS FOUND THAT SYED SADIQ MOHIUDDIN WAS NOT FOUND I N THE ADDRESS GIVEN BY ASSESSEE. EVEN THE PAN OF SHRI SYED SADIQ MOHIUDDIN GIVEN BY ASSESSEE WAS IS NOT EXISTING. AO NOTED THA T ASSESSEE HAS ENTERED INTO TRANSACTIONS WITH SHRI SYED SADIQ MOHI UDDIN IN APRIL AND MAY08 AND AFTER INITIAL PAYMENTS FROM ASSESSEE FOR RS. 13,50,000 ON 08/04/08, NO OTHER TRANSACTIONS HAPPENED TILL JANUA RY09, WHICH IS SURPRISING SINCE NO LABOUR CONTRACTOR WILL WAIT FOR HIS PAYMENT FOR MORE THAN 8 MONTHS. HE ALSO OBSERVED THAT SHRI SYED SADIQ MOHIUDDIN EVEN FAILED TO RESPOND TO THE SUMMONS ISS UED U/S 131. AO OBSERVED, THOUGH, ASSESSEE HAS FURNISHED BILLS CERT IFIED BY SHRI SYED SADIQ MOHIUDDIN ACKNOWLEDGING THE PAYMENT, AND SUCH VOUCHERS INDICATING PAYMENTS MADE THROUGH BANK PROVE TO CER TAIN EXTENT PAYMENT MADE TO SHRI SYED SADIQ MOHIUDDIN, BUT, THE OUTSTANDING LIABILITY SHOWN AGAINST HIM IS NOT PROVED. HE, THER EFORE, TREATED THE 5 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES CLOSING BALANCE OF OUTSTANDING LIABILITY AS UNEXPLA INED CREDIT AND ADDED IT TO THE INCOME OF ASSESSEE. SIMILARLY IN CA SE OF MR. SHANKAR, PRO. SHANKER CRUSHER ALSO, AS CLAIMED BY ASSESSEE, WAS A METAL SUPPLIER, THE SUMMONS ISSUED U/S 131 WERE NOT RESPO NDED TO. PAN SUBMITTED BY ASSESSEE ALSO DID NOT MATCH WITH PAN D ATA. AO OBSERVED, THOUGH, ASSESSEE HAS SUBMITTED THE BILLS CERTIFIED BY SHRI SHANKAR REGARDING SUPPLY OF MATERIALS, BUT, IN ABSE NCE OF PROOF REGARDING THE EXISTENCE OF THE CREDITOR, CLOSING BA LANCE OF RS. 23,64,500 COULD NOT BE ACCEPTED AS GENUINE. ACCORDI NGLY, HE ADDED BACK THE AMOUNT TO INCOME OF ASSESSEE. IN SO FAR AS M/S KSL CONSTRUCTIONS IS CONCERNED, AO ALSO FOUND THE FACTS TO BE IDENTICAL. THE PARTY DID NOT RESPOND TO THE SUMMONS ISSUED U/S 131, THOUGH, PAN FURNISHED BY ASSESSEE OF THE CONCERNED PARTY WA S FOUND TO BE CORRECT. HOWEVER, AO OBSERVED THAT IN ABSENCE OF PR OOF REGARDING EXISTENCE OF THE CREDITOR, OUTSTANDING BALANCE CANN OT BE TREATED AS GENUINE. ACCORDINGLY, HE ADDED BACK THE AMOUNT OF R S. 2,97,500. BEING AGGRIEVED OF SUCH ADDITIONS, ASSESSEE CHALLE NGED THE SAME IN APPEAL PREFERRED BEFORE LD. CIT(A). 10. BEFORE LD. CIT(A), ASSESSEE MADE DETAILED SUBMI SSIONS WITH REGARD TO EACH OF THE CREDITOR. IN RESPECT OF SHRI SYED SADIQ MOHIUDDIN, IT WAS SUBMITTED BY ASSESSEE THAT THE CO NCERNED PERSON WAS SUPPLYING MATERIALS TO ASSESSEE FROM EARLIER FY S ALSO AND AS ON 01/04/08, THERE WAS OUTSTANDING LIABILITY TO THE SA ID CREDITOR AMOUNTING TO RS. 23,50,000. DURING THE ACCOUNTING Y EAR, ASSESSEE EFFECTED TRANSACTION TO THE TUNE OF RS. 70 LAKHS AN D OUT OF THE TOTAL AMOUNT OF RS. 93,50,000, ASSESSEE MADE PAYMENT DURI NG THE YEAR TO THE EXTENT OF RS. 45,50,000 LEAVING THE BALANCE DUE AS ON 31/03/09 AT RS. 45 LAKHS. IT WAS SUBMITTED BY ASSESSEE, WHEN AO DOES NOT DISPUTE THE PURCHASES MADE BY ASSESSEE FROM THE SAI D CREDITOR NOR THE PAYMENTS MADE, HE CANNOT DISPUTE THE CLOSING BA LANCE ONLY. FURTHER, IT WAS SUBMITTED BY ASSESSEE THAT IN THE S UBSEQUENT AY, OUTSTANDING BALANCE HAS ALSO BEEN CLEARED UP BY ASS ESSEE. IN 6 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES RESPECT OF SHRI SHANKAR ALSO, IT WAS SUBMITTED BY A SSESSEE THAT ASSESSEE WAS HAVING A RUNNING ACCOUNT WITH THE SAID PARTY AS HE WAS SUPPLIER TO ASSESSEE FROM THE EARLIER YEARS. AS ON 01/04/08, ASSESSEE WAS HAVING AN OPENING BALANCE DUE TO THE SAID CREDI TOR AMOUNTING TO RS. 7,21,000. DURING THE YEAR UNDER CONSIDERATION, ASSESSEE MADE FURTHER PURCHASES TO THE TUNE OF RS. 18,51,500 AND MADE PAYMENTS TO TUNE OF RS. 3,09,000, LEAVING BALANCE OUTSTANDING O F RS. 23,64,500 AS ON 31/03/09. THEREFORE, WHEN AO DOES NOT DISPUTE TH E PURCHASES OR THE PAYMENTS MADE BY ASSESSEE TO THE CONCERNED PART Y, HE CANNOT DOUBT THE CLOSING BALANCE. SIMILAR ARGUMENTS WERE A LSO ADVANCED IN RESPECT OF THE CLOSING BALANCE SHOWN IN THE NAME OF M/S KSL CONSTRUCTIONS PVT. LTD. IT WAS FURTHER SUBMITTED BY ASSESSEE THAT ALL THE CREDITORS ARE ASSESSEES OF THE DEPARTMENT AND A SSESSEE HAS FURNISHED NOT ONLY THEIR PAN BUT ADDRESSES ALSO. SI NCE THERE WAS CONSIDERABLE LAPSE OF TIME WHEN AO CONDUCTED ENQUIR Y, SUMMONS COULD NOT BE RESPONDED BY THE CONCERNED PARTIES AS THEY MAY NOT BE AVAILABLE IN THE GIVEN ADDRESSES. 11. LD. CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE, DELETED THE ADDITION BY OBSERVING AS UNDER: 7.3 I HAVE SEEN CAREFULLY THE FACTS AND EVIDENCE. W ITH RESPECT TO EACH OF THE THREE CREDITORS, THE ASSESSING OFFI CER HAS ACCEPTED THE GENUINENESS OF THE PAYMENTS. THE ASSE SSING OFFICER HAS HELD THAT EACH OF THE THREE PERSONS WE RE SUPPLIERS OF THE APPELLANT WITH RESPECT TO STONE AND METAL. THE PURCHASES HAVE BEEN ACCEPTED AS GENUINE AND THE PAYMENTS MAD E HAVE BEEN ACCEPTED AS GENUINE. FOR EXAMPLE IN THE CASE OF MIS KSL CONSTRUCTIONS, THE ASSESSING OFFICER WRITES, '.... . MERE FURNISHING OF BILLS/VOUCHERS WILL ONLY CERTIFY THE GENUINENES S OF PAYMENTS BUT NOT THE EXISTENCE OF THE CREDITOR.' 7 .4 IN OTHER WORDS, THERE IS NO DOUBT EXPRESSED A BOUT THE FACT THAT PURCHASES HAD BEEN MADE AND PROPER PAYMENTS H AVE BEEN MADE WITH RESPECT TO THOSE PURCHASES. THE FACT THA T THE AFOREMENTIONED SUPPLIERS DID NOT RESPOND TO QUERIE S FROM THE INCOME TAX DEPARTMENT OR THAT SOME HAD CHANGED THE IR ADDRESS DOES NOT IMPLY THAT EITHER THE PURCHASES ARE BOGUS OR THE PAYMENTS ARE BOGUS. IT IS ALSO SEEN THAT THE CREDI TS APPEARING ARE IN THE FORM OF SUPPLIES OF STONE OR METAL PURC HASED ON 7 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES CREDIT AND THESE ARE NOT CASH CREDITS INTRODUCED D URING THE YEAR. 7.5 IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, THE ADDITIONS MADE ARE ORDERED TO BE DELETED AS THE PURCHASES AN D THE PAYMENTS ARE GENUINE. 12. LD. DR JUSTIFYING THE ADDITION MADE BY AO SUBMI TTED BEFORE US, SINCE ASSESSEE DURING THE ASSESSMENT PROCEEDING FAI LED TO ESTABLISH THE IDENTITY OF THE CREDITORS AND SUMMONS ISSUED BY AO WAS NOT RESPONDED TO BY THE CONCERNED CREDITORS, GENUINENES S OF THE TRANSACTION WAS NOT PROVED. LD. DR SUBMITTED, ASSES SEE HAS INFLATED THE EXPENSES BY SHOWING THEM AS OUTSTANDING DUE TO CONCERNED PARTIES. 13. LD. AR, ON THE OTHER HAND, STRONGLY SUPPORTING THE DECISION OF LD. CIT(A) SUBMITTED BEFORE US, WHEN AO DOES NOT DI SBELIEVE THE OPENING BALANCE OF THE OUTSTANDING DUE TO CREDITORS , PURCHASES MADE DURING THE YEAR AND PAYMENTS MADE TO THEM, HE CANNO T DOUBT THE CLOSING BALANCE AND TREAT IT AS UNEXPLAINED CREDIT. REITERATING THE SUBMISSIONS MADE BEFORE LD. CIT(A), LD. AR SUBMITTE D, ALL THE CREDITORS ARE EXISTING AND IDENTIFIED BY ASSESSEE A ND ALL OF THEM ARE INCOME TAX ASSESSEES, THEREFORE, THE DOUBT RAISED B Y AO IS NON- EXISTENT. FURTHER, HE SUBMITTED, OUTSTANDING BALANC E IN RESPECT OF EACH OF THE CREDITOR HAS BEEN CLEARED IN SUBSEQUENT AY. IN THIS CONTEXT, HE REFERRED TO THE RESPECTIVE LEDGER ACCOU NT OF THE CREDITORS AS SUBMITTED IN THE PAPER BOOK. 14. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTI ES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS OT HER MATERIALS ON RECORD. ON A PERUSAL OF THE RELEVANT MATERIAL ON RE CORD, IT IS VERY MUCH CLEAR THAT ASSESSEE WAS HAVING RUNNING ACCOUNT WITH ALL THE THREE CREDITORS IN RESPECT OF WHICH ADDITIONS HAVE BEEN MADE BY AO. THERE IS NO DISPUTE TO THE FACT THAT CONCERNED PART IES ARE SUPPLIERS TO ASSESSEE AS THE MATERIAL ON RECORD INDICATE THAT AS SESSEE WAS PURCHASING MATERIALS FROM THE CONCERNED PARTIES FRO M THE EARLIER AYS. 8 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES THIS FACT IS PROVED FROM THE OPENING BALANCE OF OUT STANDING DUE TO THE CONCERNED CREDITORS AS REFLECTED IN THE ACCOUNTS AS ON 01/04/08. SIMILARLY, IT IS FOUND FROM RECORD THAT DURING THE RELEVANT PY ASSESSEE ALSO HAS EFFECTED PURCHASES FROM THE CONCERNED PART IES AND ALSO MADE PART PAYMENTS. THESE FACTS HAVE NOT BEEN DISPU TED BY AO. THE ONLY DOUBT AO IS HAVING IS WITH REGARD TO OUTSTANDI NG CLOSING BALANCE IN RESPECT OF THREE CREDITORS. IN OUR VIEW, WHEN AO ACCEPTS PURCHASES AS WELL AS PAYMENTS MADE BY ASSESSEE TO THE CONCERN ED PARTIES, HE CANNOT TREAT THE OUTSTANDING CLOSING BALANCE OF THE CONCERNED CREDITORS AS BOGUS. IF AT ALL HE HAD AN DOUBT WITH REGARD TO THE TRANSACTIONS AFFECTED BY ASSESSEE WITH THE CONCERNE D PARTIES, HE SHOULD HAVE TREATED THE ENTIRE TRANSACTIONS AS BOGU S AND NOT PART OF IT. MOREOVER, IT IS SEEN FROM THE OBSERVATIONS MADE BY AO THAT HE ACCEPTS THE FACT THAT BILLS/VOUCHERS SUBMITTED BY A SSESSEE TO CERTAIN EXTENT PROVES THE GENUINENESS OF THE TRANSACTION BE TWEEN PARTIES. THAT BEING THE CASE, IN OUR VIEW, AO CANNOT TREAT T HE OUTSTANDING BALANCE DUE TO THE CREDITORS AS BOGUS PURCHASES OF THE ASSESSEE ON PURELY CONJECTURES AND SURMISES. IN THE AFORESAID V IEW OF THE MATTER, HAVING NOT FOUND ANY INFIRMITY IN THE ORDER OF LD. CIT(A) IN DELETING ADDITION MADE BY AO IN RESPECT OF THE THREE CREDITO RS, WE UPHOLD THE SAME BY DISMISSING THE GROUNDS RAISED BY THE DEPART MENT. 15. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON 31 ST AUGUST, 2015. SD/- SD/- (P.M. JAGTAP) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 31 ST AUGUST, 2015 KV 9 ITA NO. 764 /HYD/2014 M/S SRI SAI RAM ENTERPRISES COPY TO:- 1) DCIT, CIRCLE 1, AAYAKAR BHAVAN, NEAR BUS STAN D, KARIMNAGAR 2) M/S SRI SAI RAM ENTERPRISES, H.NO. 2-10-1238/E, CHAITANYAPURI, KARIMNAGAR. 3) CIT(A) III, HYDERABAD 4) CIT-II, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.