Ham Marketing Services, Hyderabad V. ITO, Ward 4(3), Hyderabad

ITA 871/HYD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69782 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 27-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R LAXMAN
• Assessee Lawyers: S RAMA RAO
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A ', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.871/HYD/13 : ASSESSMENT YEAR 2009 - 10 M/S. HAM MARKETING SERVICES, HYDERABAD (PAN AABFH 3926 R) V/S. INCOME TAX OFFICER, WARD 4(5) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.RAMA RAO RESPONDENT BY : SHRI R.LAXMAN DATE OF HEARING 10.09.2013 DATE OF PRONOUNCEMENT 10.09.2013 O R D E R PER SAKTIJIT DEY, JUDICIAL MEMBER: TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) V HYDERABAD DATED 2 1 . 2 .201 3 FOR THE ASSESSMENT YEAR 2009 - 10. 2. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPEAL READ AS FOLLOWS - 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN COMPL E TING THE ASSESSMENT EX - PARTE U/S. 144 OF THE I.T. AC T . 3. T H E LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN HOLDING THAT THERE WAS NO CO M PLIANCE TO THE NO T I C ES ISSUED BY THE APPELLANT HEREIN. THE LEARNED COMMISSION ER OF INCOME - TAX(APPEALS) OUGHT TO HAVE PROVIDED FURTHER OPPORTUNITY BEFORE FINALIZING THE APPEAL. 4. THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN CON F IR M ING THE ACTION OF THE ASSESSING OFFICER IN DISALLO W I N G THE EXPENDITURE OF R S .68,56,957. 5. THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN CONFIRMING THE ADDITION OF R S .1,45,690 MADE BY THE ASSESSING OFFICER TO THE INCOME FROM OTHER SOURCES. 6. . ITA NO. 8 71 / HYD/201 3 M/S. HAM MARKETING SERVICES , LTD., H YDERABAD 2 3. WE HEARD BOTH SIDES AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. THE ASS ESSEE IS A FIRM DERIVING INCOME FROM BUSINESS OF DISTRIBUTION CUM SALES AS AGENT OF APDDCF LTD, WHICH FILED E - RETURN F OR THE ASSESSMENT YEAR 2009 - 10 ON 30.9.2009 , DECLARING A TOTAL INCOME OF RS.17,23,887. AS AGAINST THIS, THE ASSESSING OFFICER COMPLETED T HE ASSESSMENT UNDER S.144 OF THE ACT, MAKING AN AGGREGATE DISALLOWANCE OF RS.68,56,957 OUT OF EXPENDITURE CLAIMED AGAINST BUSINESS INCOME, AND MAKING AGGREGATING ADDITION OF RS.1,45,690 TREATING T WO AMOUNTS OF INTEREST EARNED AS INCOME FROM OTHER SOURCES , COMPLETED THE ASSESSMENT ON A TOTAL INCOME OF RS .87,26,534, VIDE ORDER OF ASSESSMENT DATED 30.12.2011. ON APPEAL, THE CIT(A) TOO DISPOSED OF F THE APPEAL OF THE ASSESSEE EX - PARTE VIDE IMPUGNED ORDER DATED 21.2.2013. WE FIND THAT THE ASSESSING OFFICER HAS TAKEN UP THE ASSESSMENT THROUGH FI R ST DATE OF HEARING OF 15.12.2011, AND AFTER ADJOURNING THE MATTER TO 26.12.2011, ULTIMATELY PASSED THE IMPUGN E D ORDER DATED 30.12.2011 , COMPLETING THE ASSESSMENT EX - PARTE . THUS, THE ASSESSMENT WAS COMPLETED WITHIN A SHORT SPAN OF FIFTEEN DAYS . T HE CIT(A) ALSO DISPOSED OFF THE APPEAL OF THE ASSESSEE BY THE IMPUGNED O R DER DATED 21.2.2013, WHICH TOO IS NOT A SPEAKING ORDER, SINCE THE OPERATIVE PORTION ON PAGE 3 THEREOF IS BARELY FIVE LINES, JUST CONFIRMING BOTH THE ADDITIONS OF R S .68,56,957 AND RS.1,45,690. 4. CONSIDERING TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, AND THE PLEA OF THE ASSESSEE WITH REGARD TO INADEQ UACY OF THE OPPORTUNITY OF HEARING GIVEN BY THE ASSESSING OFFICER AND CIT(A) AND PRAYER OF THE ASSESSEE FOR ONE MORE REASONABLE OPPORTUNITY TO SUBSTANTIATE ITS CASE, WE FIND IT JUST AND PROPER TO SET ASIDE THE IMPUGNED ORDER O F THE CIT(A) AND RESTORE THE M ATTER TO THE FILE OF THE ASSESSING OFFICER FOR REFRAMING THE ASSESSMENT. WE DO SO ACCORDINGLY. THE ASSESSING OFFICER IS DIRECTED TO GIVE REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE TO SUBSTANTIATE ITS CASE BY PRODUCING THE RELEVANT MATERIAL. THE A SSESSING OFFICER SHALL THEREAFTER FRAME THE ASSESSMENT AFRESH BY PASSING A SPEAKING ORDER ON ALL ITA NO. 8 71 / HYD/201 3 M/S. HAM MARKETING SERVICES , LTD., H YDERABAD 3 THE ISSUES INVOLVED IN ACCORDANCE WITH LAW. ASSESSEE TOO IS DIRECTED TO COOPERATE BY COMPLYING WITH THE NOTICES OF THE ASSESSING OFFICER AND ENABLE EARLY COMP LETION OF ASSESSMENT BY HIM. 5. IN THE RESULT, ASSESSEE S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF THE HEARING ON 10.0 9 .2013 SD/ - SD/ - (CHANDRA POOJARI) ( SAKTIJIT DEY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED/ - 10 TH SEPTEMBER, 2013 COPY FORWARDED TO: 1 M/S. HAM MARKETING SERVICES, C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3 - 6 - 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 INCOME - TAX OFFICER, WARD 4 (3), HYDERABAD 3 COMMISSIONER OF INCOME - TAX(APPEALS) V , HYDERABAD 4 COMMISSIONER OF INCOME - TAX I V , HYDERABAD 5 DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S