Srinivas Adipally , Karimnagar V. Income Tax Officer, Ward-2, Karimnagar

ITA 789/Hyd/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1709 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 27-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: KIRAN
• Section: 234B; 69A; 37; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC , HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 789 /HYD/20 18 ASSESSMENT YEAR: 20 14 - 15 SHRI SRINIVAS ADIPALLY, H. NO. 4 - 365, GANGADHARA X ROAD, GANGADHARA, KARIMNAGAR 505 445. PAN: AGOPA 4760 D VS. INCOME TAX OFFICER, WARD - 2, KARIMNAGAR. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI KIRAN, AR REVENUE BY: SRI R. MOHAN REDDY, DR DATE OF HEARING: 21/11/2019 DATE OF PRONOUNCEMENT: 05 /1 2 /2019 ORDER 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 2, HYDERABAD IN APPEAL NO. 10166/CIT (A) - 2/HYD/2017 - 18, DATED 28/02/2018 PASSED U/S. 144 R.W.S 250(6) OF THE ACT FOR THE A.Y. 2014 - 15. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN HIS APPEAL: - 1. THE ORDER OF THE LOWER AUTHORITIES IN SO FAR AS IT IS AGAINST THE APPELLANT IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES AND THE F ACTS AND CIRCUMSTANCES IN THE APPELLANTS CASE. 2. THE APPELLANT DENIES HIMSELF LIABLE TO BE ASSESSED ON A TOTAL INCOME OF RS. 44,25,950/ - AS AGAINST THE INCOME RETURNED BY THE APPELLANT OF RS. 3,03,550/ - UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. W HETHER THE LD AUTHORITY BELOW IS JUSTIFIED IN DISMISSING THE APPEAL WITHOUT TAKING INTO CONSIDERATION THE MERITS OF THE CASE, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 2 4. WHETHER THE LD AUTHORITIES BELOW ARE JUSTIFIED IN NOT APPRECIATING THE FACT THAT THE APPELLANT IS ONLY A COMMISSION AGENT AND THE AMOUNTS DE POSITED INTO THE BANK ACCOUNTS ARE AS CUSTODIAN AND NOT INCOME OF THE APPELLANT, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. WHETHER THE LD AUTHORITIES BELOW ARE CORRECT IN NOT APPRECIATING THE FACT THAT THE ADVERTISEMENT EXPENDITURE INCURRED BY THE APPELLANT SATISFIES THE CONDITIONS LAID DOWN UNDER THE PROVISIONS OF SECTION 37 OF THE ACT, UNDER THE FACTS AND CIRCUMSTANCES. 6. WHETHER THE LD AUTHORITIES BELOW ARE CORRECT IN PASSING THE ORDER WITHOUT TAKING INTO CONSIDERATION THE MERITS OF THE CASE, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 7. WHETHER THE LD AUTHORITIES BELOW ARE JUSTIFIED IN TREATING THE DEPOSITS IN THE BANK ACCOUNT AS INCOME BY INVOKING THE PROVISIONS OF SECTION 69A OF T HE ACT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 8. WHETHER THE LD AUTHORITY BELOW IS JUSTIFIED IN PASSING THE ORDER OF THE ASSESSMENT UNDER SECTION 144 OF THE ACT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 9. THE APPELLANT DENIES HERSELF LIABLE T O BE CHARGED TO INTEREST UNDER SECTION 234A & 234B OF THE ACT AND REQUIRES TO BE CANCELLED ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 10. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, DELETE OR SUBSTITUTE ANY OF THE GROUNDS URGED ABOVE. 3. AT THE OUTSET, TH E LD. AR SUBMITTED BEFORE US THAT THE LD. CIT (A) HAS PASSED EX - PARTE ORDER WITHOUT PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD. AO IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PURSUE THE APPEAL . LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE HOWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEF ORE THE LD. CIT (A) AS WELL AS THE LD. AO . IT WAS FURTHER SUBMITTED THAT THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS EX - PARTE ORDER BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, 3 IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT CALL FOR ANY INTERFERENCE AND THE APPEAL OF THE ASSESSEE MAY BE DISMISSED. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FACTS O F THE CASE, I FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. THE LD. CIT (A) HAD POSTED THE CASE ON SEVERAL OCCASIONS. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE THE CIT(A) ON THE DATES OF HEARING. O N THE FINAL DATE OF HEARING, THOUGH THE LD. AR APPEARED BEFORE THE LD. CIT (A) HE DID NOT FURNISH ANY MATERIALS IN SUPPORT OF THE ASSESSEES CASE. THEREFORE, IN THE ABSENCE OF ANY DETAILS AND PROPER REPRESENTATION, THE LD. CIT (A) WAS FORCED TO PASS ORDER BASED ON THE MATERIALS ON RECORD . IT IS AL SO A FACT THAT THE ASSESSEE HAD NOT COMPLIED WITH THE NOTICES ISSUED BY THE LD. A.O. DURING THE ASSESSMENT PROCEEDINGS AND THEREFORE, THE LD. A.O. PASSED EX - PARTE ORDER U/S. 144 OF THE ACT FOR NON - APPEARANCE . IN THIS SITUATION, I DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR, AND IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. A.O. IN ORDER TO CONSIDER THE APPEAL AF RESH BY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH, I ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. REVENUE AUTHORITIES IN THE IR PROCEEDINGS FAILING WHICH THE LD. REVENUE AUTHORITIES SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER S IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON RECORD. IT IS ORDERED ACCORDINGLY. 4 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 05 TH DECEMBER , 2019. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 05 TH DECEMBER , 2019 OKK COPY TO: - 1) SRINIVAS ADIPALLY C/O. PAWAN KUMAR CHAKRAPANI, M/S. V.M. CHAKRAPANI & CO., CHARTERED ACCOUNTANTS, 5 - 5 - 8/9 & 10, 2 ND FLOOR, SRINIVASA BUILDING, RANIGUNJ, SECUNDERABAD 500 003. 2) INCOME TAX OFFICER, WARD - 2, KARIMNAGAR. 3) THE CIT(A) - 2, HYDERABAD 4) THE PR. CIT - 2, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE