Sree Nagendra Constructions, Hyderabad V. Dy. Commissioner of Income Tax , Central Circle-2(1), Hyderabad

ITA 885/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1322 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 20-02-2019
• Assessment Year: misc
• Appeal Filed On: 08-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 142(1); 68

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE S MT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S . RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 8 8 5 /H YD/201 8 ASSESSMENT YEAR: 20 1 3 - 1 4 S REE NAGENDRA CONSTRUCTIONS , HYDERABAD. PAN AAUFS 4784 M VS. DY. COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE 2(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. MURALI MOHANA RAO REVENUE BY : S HRI NILANJAN DEY DATE OF HEARING : 25 - 0 2 - 201 9 DATE OF PRONOUNCEMENT : 15 - 0 3 - 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) 12 , HYDERABAD, DATED 25 / 1 0 /201 6 FOR AY 20 1 3 - 14. 2. THE MAIN GRIEVANCE OF THE ASSESSEE IN THE GROUNDS OF APPEAL IS THAT THE ASSESSEE OUGHT TO HAVE DECIDED THE APPEAL ON MERITS. 3. BRIEF FACTS OF THE CASE ARE, ASSESS EE FIRM FILED ITS RETURN OF INCOME FOR THE AY 2013 - 14 ON 29/04/2014 ADMITTING TOTAL INCOME OF RS. 42,03,420/ - . SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE U/S 143(2) WAS ISSUED ON 31/08/2015 AND THE SAME WAS SERVED ON THE ASSESSE E ON 03/09/2015. SUBSEQUENTLY, NOTICE U/S 142(1) WAS ISSUED ON 11/09/2015 CALLING FOR SPECIFIC INFORMATION. 3.1 AFTER EXAMINING THE INFORMATION FURNISHED BY THE ASSESSEE, THE AO OBSERVED THAT THERE WAS INCREASE IN SUNDRY CREDITORS AND SINCE THE ASSESSEE F AILED TO FURNISH THE BASIC DETAILS AND AS SUCH FAILED TO ESTABLISH THE PROOF OF IDENTITY OF CREDITORS, THE CAPACITY OF THE 2 ITA NO . 8 85 /HYD/201 8 S REE NAGENDRA CONSTRUCTIONS, HYD. CREDITORS TO ADVANCE THE MONEY AND GENUINENESS OF THE TRANSACTIONS IN ORDER TO DISCHARGE THE ONUS CAST ON IT U/S 68 OF THE ACT, HE BR OUGHT TO TAX AN AMOUNT OF RS. 1,70,23,768/ - AS UNEXPLAINED CREDITS U/S 68 OF THE ACT. 4. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) DISMISSED THE APPEAL IN LIMINE WHEN THE ASSESSEE FAILED TO COMPLY TO THE NOTICES ISSUED BY HIM. HE ALSO OBSERVED THAT THERE WAS A DELAY OF 28 DAYS IN FILING THE APPEAL BEFORE HIM AND THE EXPLANATION OFFERED BY THE ASSESSEE FOR THE DELAY WAS TOO GENERAL AND NOT CONVINCING, THEREFORE, ON THIS GROUND ALSO THE APPEAL WAS DISMISSED. 5. THE LD. AR SUBMITTE D THAT THE LEARNED CIT(A) DECIDED THE MATTER EX - PARTE AND, THEREFORE, IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED TO THE FILE OF CIT(A) FOR DECIDING THE AP PEAL ON MERITS. THE LEARNED DR OBJECTED TO THE AFORESAID STATEMENT OF THE LEARNED AR. 6 . CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE ARE OF THE VIEW THAT INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS RESTORED TO THE FILE OF FIRST APPELLATE AUTHORITY FOR DECIDING GROUNDS OF APPEAL OF THE ASSESSEE ON MERITS. ACCORDINGLY, THE CIT(A) IS DIRECTED TO AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEREAFTER DECIDE THE APPEAL ON MERITS. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS AL LOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 15 TH MARCH , 201 9. SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 15 TH MARCH , 2 01 9. KV 3 ITA NO . 8 85 /HYD/201 8 S REE NAGENDRA CONSTRUCTIONS, HYD. COPY TO: - 1) M/S SREE NAGENDRA CONSTRUCTIONS, C/O P. MURALI & CO., CAS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82 2) DCI T, CENTRAL CIRCLE 2 ( 1 ), HYDERABAD. 3) CIT(A) 12 , HYDERABAD. 4) PR. CIT (CENTRAL) , HYD . 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE