ACIT, Central Circle, Tirupati, Tirupathi V. VSN Jeevan and Infra Developers, , Tirupati

ITA 769/Hyd/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2598 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 07-10-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 04-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: S RAMA RAO
• Keywords: Loose papers; Document seized; Documents seized
• Section: 143(3); 153C

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NOS.769/HYD/2017 A.Y. 2009 - 10 ACIT, CENTRAL CIRCLE, TIRUPATHI. VS. VSN JEEVAN AND INFRA DEVELOPERS, TIRUPATI. PAN: AAIFV 3414 B (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI S. RAMA RAO REVENUE BY: SHRI Y.V.S.T. SAI, CIT - DR DATE OF HEARING: 07/10/2021 DATE OF PRONOUNCEMENT: 26 /10/2021 ORDER PER S.S. GODARA, J.M: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) - 3, VISAKHAPATNAM IN CASE NO.93/2014 - 15/CIT(A) - 3/VSP/2016 - 17, DATED 21/02/2017 PASSED IN PROCEEDINGS U/S. 143(3) R.W.S 250(6) OF THE INCOME TAX ACT, 1961 (THE ACT) FOR THE ASSESSMENT YEAR 2009 - 10. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE REVENUE HAS RAISED THREE GROUNDS IN ITS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: 2 1. THE LD. CIT(A) ERRED IN ACCEPTING THE ASSESSEES PLEAD THAT THE SEIZED DOCUMENTS ARE DUMB DOCUMENTS. 2. THE LD. CIT(A) ERRED IN IGNORING THE FACTS BROUGHT ON REC ORD BY THE ASSESSING OFFICER THAT TOTAL UNACCOUNTED SALE TRANSACTION VALUE IS RS. 4 CRORE. 3. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME OF HEARING. 3. COMING TO THE REVENUES SOLE SUBSTANTIVE GRIEVANCE SEEKING TO REVIVE THE ASSESSING OFFICERS AC TION MAKING ADDITION OF RS. 4 CRS AS UNEXPLAINED SALE TRANSACTION AMOUNT WHICH STANDS PARTIALLY REVERSED IN THE CIT(A) ORDER UNDER CHALLENGE, THE L OWER A PPELLATE DECISION TO THIS EFFECT READS AS UNDER: GROUND NO.(2) IS WITH REGARD TO ADDITION OF RS. 4,00, 00,000/ - MADE BY THE ASSESSING OFFICER. THE ASSESSMENT ORDER FOR THE A.Y. 2009 - 10 IS PASSED U/S. 143(3) BEING THE YEAR OF SEARCH (25/07/2008). THE FACTS AND CIRCUMSTANCES AND THE MATERIAL FORMING PART OF THE ASSESSMENT OF M.G. BROTHERS AUTOMOBILES PVT LT D AND THE APPELLANT ARE ONE AND THE SAME. THE HONBLE ITAT, BEING THE FINAL FACT FINDING AUTHORITY HAS EXAMINED THE DOCUMENTS SEIZED FROM THE PREMISES OF MG BROTHERS AUTOMOBILES PVT LTD AND REVEALED A CATEGORICAL FINDING THAT THE MATERIAL SEIZED IS VALID AND THE PAYMENTS TO THE EXTENT OF RS. 1.80 CRS IS UNDISCLOSED INCOME AND THERE CANNOT BE FURTHER ADDITION ON THIS COUNT. THIS ADDITIONAL INCOME IS ELATED TO THE SALE OF LAND OF 8.5 ACRES AT PUDIPATLA BETWEEN MG BROTHERS AUTOMOBILES PVT LTD AND THE APPELLA NT. IN MY CONSIDERED OPINION, THE DECISION OF THE ITAT IN THE CASE OF MG BROTHERS AUTOMOBILES PVT LTD., SQUARELY APPLICABLE TO THE APPELLANT DUE TO THE FACT THAT THE MATERIAL ON WHICH BOTH THE ASSESSMENTS ARE MADE IS ONE AND THE SAME, THE LAND WHICH WAS SUBJECTED TO SALE AND THE PARTIES TO THE SALE ARE ONE AND THE SAME. THERE IS NO DISPUTE REGARDING THE PRICE OF RS. 1.13 CRS MENTIONED IN THE REGISTERED DOCUMENT. SINCE THE TOTAL INVESTMENT MADE BY MG BROTHERS AUTOMOBILES PVT LTD IN 2.93 CRS INCLUDING 1.13 CRS, WHAT REMAINS TO BE TAXED IS RS. 1.80 CRS ONLY. THE FACTS AND CIRCUMSTANCES OF THE CASE OF SRI NEKKANTI SRI KRISHNA PRASAD CANNOT BE APPLIED AS THERE IS NO LEGAL GROUND U/S. 153C IN THE INSTANT CASE. FURTHER, THERE WAS DENIAL OF PAYMENT OF RS. 1 .80 CRS FROM MG BROTHERS AUTOMOBILES PVT LTD AS THAT OF SRI NEKKANTI SRI KRISHNA PRASAD. 4. LD. CIT - DR VEHEMENTLY CONTENDED DURING THE COURSE OF HEARING THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN GRANTING THE ABOVE PART 3 RELIEF TO THE ASSESSEE QUA T HE ON - MONEY AMOUNT RECEIVED AS VENDOR FROM ITS VENDEE M/S. MG BROTHERS AUTOMOBILES PVT. LTD. HE FAILS TO REBUT THE CLINCHING FACT THAT THIS T RIBUNALS C OORDINATE B ENCH HAS ALREADY HELD THAT THE SEIZED DOCUMENTS IN QUESTION RECOVERED FROM THE FOREGOING VEN DEE HAD INDICATED ON - MONEY PAYMENT OF RS. 1.80 CRS ONLY. WE, THUS, ADOPT JUDICIAL CONSISTENCY TO CONFIRM THE CIT(A) ACTION UNDER CHALLENGE GRANTING PART RELIEF TO THE ASSESSEE IN THE VERY TERMS. 5 . THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH OCTOBER, 2021. SD/ - SD/ - ( L.P. SAHU ) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 26 TH OCTOBER , 2021. OKK COPY TO: - 1) ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AAYAKAR BHAVAN, 3 RD FLOOR, K.T. ROAD, TIRUPATI. 2) M/S. VSN AND JEEVAN INFRA DEVELOPERS, D.NO. 306/9, NARSINGI HEIGHTS, NARSINGI VILLAGE, RAJENDRA NAGAR, RANGA REDDY DIST, TELANGANA. 3) THE CIT (A) - 3, VISAKHAPATNAM. 4) THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), VISAKHAPATNAM. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE