L.Venkat Reddy, Hyderabad V. DCIT, Hyderabad

ITA 824/HYD/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3192 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-05-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 30-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A PHANI RAJU
• Assessee Lawyers: A V RAGHURAM
• Keywords: Unexplained cash credit; Additional evidence; Condonation of delay
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMEBR ITA NO.824/HYD/09 ASSTT. YEAR 2004-05 SHRI VENKAT REDDY, HYDERABAD (PAN NO. ABDPL 2635 C) V/S. DY. COMMISSIONER OF INCOME TAX, CIRCLE-6(1), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.V. RAGHURAM RESPONDENT BY : SHRI A. PHANI RAJU, DR O R D E R PER SHRI G.C. GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2004- 05 IS DIRECTED AGAINST THE ORDER OF THE CIT (A). 2. THIS APPEAL IS BARRED BY LIMITATION BY ONE DAY. WE HAVE HEARD THE PARTIES REGARDING THE ISSUE OF CONDONATION OF DELAY . IN THE FACTS OF THE CASE, WE HOLD THAT IT IS A FIT CASE FOR CONDONATION O F DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL AND ACCORDINGLY THE D ELAY OF ONE DAY IN FILING THE APPEAL BEFORE THE TRIBUNAL IS CONDONED. T HE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: '1. THE LEARNED ASSESSING OFFICER ERRED IN MAKING ADDITION OF RS.8,93500/- AND CIT APPEALS ERRED BOTH ON FACTS AND IN LAW IN SUSTAINING THE ADDITION OF RS.8,93,500/- AS UNEXPLAINED CASH CREDITS U/S 68 OF THE IT ACT. ITA NO.824/HYD/09 SHRI L VENKAT REDDY, HYDERABAD. 2 2. THE LEARNED CIT APPEALS ERRED IN NOT ENTERTAININ G ADDITIONAL EVIDENCE FILED UNDER RULE 45A OF THE IT ACT. 3. THE LEARNED CIT APPEALS OUGHT TO HAVE CONSIDERED THAT THE APPELLANT HAD FILED THE CONFIRMATION LETTE RS FROM THE PARTIES AND ALL THESE PERSONS ARE WELL KNOWN IN THEIR PLACES AND IF NOTICE IS ADDRESSED TO THEM IT WILL REACH AND ALSO THE ASSESSING OFFICER NEVER DIRECTED TO THE APPELLANT TO PRODUCE THE CREDITORS. 4. THE LEARNED CIT APPEALS ERRED IN LAW IN SUSTAINI NG THE ADDITION OF RS.8,93,500/- AS THE UNEXPLAINED CASH CREDIT U/S 68 OF THE IT ACT WITHOUT GOING INTO MERITS OF THE CASE'. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE CIT (A) HAS WRONGLY REJECTED THE REQUEST OF THE ASSESSEE FOR ENTER TAINING ADDITIONAL EVIDENCE FILED UNDER RULE 45A OF THE INCOM E-TAX RULES. HE SUBMITTED THAT IN ACCORDANCE WITH THE PRINCIPLES OF NATUR AL JUSTICE, THE ASSESSEE SHOULD HAVE BEEN ALLOWED FULL OPPORTUNITY OF BE ING HEARD AND ITS ADDITIONAL EVIDENCES SHOULD HAVE BEEN CONSIDERED BY T HE REVENUE AUTHORITIES. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPOSED THE SUBMISSION OF THE LEARNED COUNSEL. HE SUBMITTED THA T THE ASSESSEE HAS FILED ONLY THE AFFIDAVITS OF THE PARTIES AND COULD NOT EXPLAIN THAT WHY THESE WERE NOT FILED BEFORE THE ASSESSI NG OFFICER. HE RELIED UPON THE DECISION OF THE HON'BLE ANDHRA PRADESH HIGH COURT IN 102 ITR 757. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. FROM THE FA CTS OF THE CASE WE FIND THAT CIT (A) SHOULD HAVE ADMITTED THE ADD ITIONAL EVIDENCE FILED BY THE ASSESSEE. ACCORDINGLY THE ISSUES IN THE GROUND S OF THE APPEAL OF THE ASSESSEE ARE RESTORED TO THE FILE OF THE ASSESSING OFFICER ITA NO.824/HYD/09 SHRI L VENKAT REDDY, HYDERABAD. 3 TO DECIDE THE ISSUE AFRESH ON MERITS AND FRAME A DE NOVO ASSESSMENT AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE SHALL BE AT LIBERTY TO FILE EVIDENCE IN SUPPORT O F HIS CASE. WE DIRECT ACCORDINGLY. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 04-06-2010. SD/- SD/- (CHANDRA POOJARI) (G.C. GUPTA) ACCOUNTANT MEMBER VICE-PRESIDENT PVV/SPS DATE: 4TH JUNE, 2010. COPY FORWARDED TO: 1. SHRI L. VENKAT REDDY, C/O B. NARSINGH RAO & CO., CHARTERED ACCOUNTANTS. NO.610, 6TH FLOOR, BABUKHAN ESTATE, BASHEE RBAGH, HYDERABAD 2. THE DY. COMMISSIONER OF INCOME-TAX CIRCLE-6(1), HYD ERABAD. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS) IV, HYDERABA D. 4. COMMISSIONER OF INCOME-TAX-III, HYDERABAD 5 THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD.