R.R.Entertainments, Hyderabad V. Income Tax Officer, Ward-14(5), Hyderabad

ITA 80/Hyd/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5226 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Keywords: Revision of order
• Section: 40A(3); 143(3); 263

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE S MT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S . RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 8 0 /H YD/201 9 ASSESSMENT YEAR: 20 13 - 14 R.R. ENTERTAINMENTS, HYDERABAD. PAN A A OFR6690R VS. INCOME - TAX OFFICER , WARD 14(5), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : S HRI NILANJAN DEY DATE OF HEARING : 1 0 - 0 5 - 201 9 DATE OF PRONOUNCEMENT : 15 - 0 5 - 201 9 O R D E R PER S . RIFAUR RAHMAN, A .M.: TH IS APPEAL FILED BY ASSESSEE IS DIRECTED AGAINST THE ORDER O F CIT(A) 6 , HYDERABAD, DATED 1 9 /0 9 /2018 FOR AY 2013 - 14 . 2. WHEN TH IS APPEAL W AS POSTED FOR HEARING ON 10 /0 5 /201 9 , NONE APPEARED ON BEHALF OF THE ASSESSEE NOR THE DEFECTS RAISED BY THE REGISTRY WERE RECTIFIED THOUGH THE NOTICE HAS BEEN SERVED . IN THESE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTING ITS APPEAL. IT HAS BEEN HELD BY THE HONBLE SUPREME COURT IN THE CASE OF B.N. BHTTACHARGEE & ANR., 118 ITR 461 THAT APPEAL DOES NOT MEAN ONLY F ILING OF MEMO OF APPEAL BUT ALSO PURSUING IT EFFECTIVELY. IN CASES WHERE THE ASSESSEE DOES NOT WANT TO PURSUE THE APPEAL, COURT/TRIBUNAL HAVE INHERENT POWER TO DISMISS THE APPEAL FOR NON - PROSECUTION AS HELD BY HONBLE HIGH COURT OF MUMBAI IN THE CASE OF M/S CHEMIPOL VS. UNION OF INDIA IN EXCISE APPEAL NO. 62 OF 2009. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE OF MULTIPLAN (INDIA) LTD., (38 ITD 320) AND 2 ITA NO . 80 /HYD/201 9 M/S R.R. ENTERTAINMENTS, HYD. MADHYA PRADESH HIGH COURT IN LATE TUKOJIRAO HOLKAR (223 ITR 480), WE DIS MISS TH IS APPEAL OF THE ASSESSEE FOR WANT OF PROSECUTION. 3. EVEN ON MERITS , THE ASSESSEE , A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF PURCHASE AND SALE OF SATELLITE RIGHTS OF FEATURE FILMS, FILED ITS RETURN OF INCOME FOR THE IMPUGNED AY 2013 - 14, DECL ARING A TOTAL TAXABLE INCOME OF RS. 19,73,080/ - , SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND THE SCRUTINY ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT, VIDE ORDER DATED 31/03/2016, DETERMINING THE TAXABLE INCOME OF THE ASSESSEE AT RS. 1,00,95,52 0/ - . WHILE DOING SO, THE AO, INTER - ALIA, DISALLOWED AN AMOUNT OF RS. 2,50,00,000/ - BEING THE CASH PAYMENTS MADE IN CONTRAVENTION OF THE PROVISIONS OF SECTION 40A(3) OF THE ACT. WHEN THE ASSESSEE PREFERRED AN APPEAL AGAINST THE ORDER OF AO, THE CIT(A) DISMI SSED THE APPEAL. 3.1 SUBSEQUENTLY, THE PR. CIT 6, REVISED THE ASSESSMENT ORDER U/S 263 VIDE ORDER DATED 27/03/2018, WHEREIN, HE DIRECTED THE AO TO TREAT A SUM OF RS. 75,00,000/ - BEING SALE CONSIDERATION RECEIVED BY THE ASSESSEE FROM M/S KALA SRUSTI INTE RNATIONAL TOWARDS SALE OF SATELLITE RIGHTS OF TELUGU FEATURE FILM LOVE CHESTHE AS THE INCOME OF THE ASSESSEE RELATING TO FY 2012 - 13 RELEVANT TO AY 2013 - 14. ACCORDINGLY, THE AO PASSED CONSEQUENTIAL ORDER U/S 143(3) RWS 263 OF THE ACT , AGAINST WHICH, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A) AND T HE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE AS NOT MAINTAINABLE BY RELYING ON VARIOUS CASE LAW. 4. SINCE, THERE IS NO REPRESENTATION FROM THE ASSESSEE AND THE FINDINGS OF THE CIT(A ) ARE UNCONTROVERTED, WE UPHOLD THE ORDER OF CIT ( A ) IN THE APPEAL UNDER CONSIDERATION AND DISMISS THE APPEAL OF THE ASSESSEE. 3 ITA NO . 80 /HYD/201 9 M/S R.R. ENTERTAINMENTS, HYD. 5 . IN THE RESULT, THE APPEAL FILED BY THE AS SESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 15 TH MAY , 201 9. SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 15 TH MAY , 2 01 9. KV COPY TO: - 1) M/S R.R. ENTERTAINMENTS, 1 - 7 - 412, BAKARAM, MUSHEERABAD, HYDERABAD 500 020 2) ITO, WARD 14(5), HYD ERABAD. 3) CIT(A) 6 , HYDERABAD. 4) PR. CIT - 6 , HYD . 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE