Deccan Health Care Private Limited, Hyderabad V. Asst. Commissioner of Income Tax, Circle-17(1), Hyderabad

ITA 886/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5920 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-03-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 08-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Opportunity of being heard
• Section: 143(3); 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 886 /H/20 1 8 ASSESSMENT YEAR: 2 0 1 4 - 1 5 DECCAN HEALTH CARE PVT. LTD., HYDERABAD. PAN A A BCD 0352 N VS. ASST. COMMISSIONER OF INCOME - TAX, CIRCLE 17 ( 1 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHANA RAO REVENUE BY: SHRI ROHIT MUJUMDAR DATE OF HEARING: 1 5 /0 3 /2021 DATE OF PRONOUNCEMENT: 22 /0 4 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 5 , HYDERABADS ORDER DATED 1 2 / 0 3 /201 8 FOR AY 20 1 4 - 15 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT. 2. BRIEFLY , TH E FACTS OF THE CASE ARE THAT THE A SSESSEE COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF P H ARMA PRODUCTS , FILED ITS RETURN OF INCOME FOR THE I TA NO. 886/ HYD /201 8 M/S DECCAN HEALTH CARE PVT. LTD., HYD . : - 2 - : ASSESSMENT YEAR 2014 - 15, DECLARING A LOSS OF RS. 1,57,87,4 29/ - UNDER NORMAL PROVISIONS AND BOOK LOSS OF RS. ( - ) 5,33,44,675 / - . THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS . AS THE A SSESSEE FAILED TO FURNISH BOOKS OF A CCOUNT AND OTHER DETAILS THAT WERE CALLED FOR DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO MADE THE ADDITION OF RS. 21,12,408 / - BEING ESTIMATED NET PROFIT @3% ON SALES OF RS. 7,04,13.619/ - AND ALSO ADDED OTHER INCOME OF RS. 53,886 / - BY PASSING AN O RDER U/S 143 ( 3) OF THE ACT. 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE AFTER CONSIDERING THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE BEFORE HIM , WHICH WERE EXTRACTED BY THE CIT(A) IN HIS ORDER AT PAGES 5 TO 8. 4. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 5. BEFORE US, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE BOOKS OF ACCOUNT OF THE ASSESSEE HAVE BEE N AUDITED BY A QUALIFIED CA AND NO ADVERSE REMARKS HAVE BEEN MADE BY THE AUDITOR. HE SUBMITTED THAT THE BOOKS OF ACCOUNT AND BILLS/VOUCHERS ARE AVAILABLE WITH THE ASSESSEE WERE NOT SUBMITTED BEFORE THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS DUE TO UNAVOIDABLE CIRCUMSTANCES . HE, I TA NO. 886/ HYD /201 8 M/S DECCAN HEALTH CARE PVT. LTD., HYD . : - 3 - : THEREFORE, REQUESTED THE BENCH THAT IF THE MATTER IS REMITTED BACK TO THE REVENUE AUTHORITIES, THE ASSESSEE WILL BE ABLE TO PRODUCE BOOKS OF ACCOUNT AND ALL THE NECESSARY DOCUMENTS THAT ARE REQUIRED FOR ASSESSMENT. 6. ON T HE OTHER HAND, THE LD. DR VEHEMENTLY OBJECTED THE REQUEST OF THE LD. AR AND SUBMITTED THAT EVEN THOUGH SUFFICIENT OPPORTUNITIES WERE PROVIDED TO THE ASSESSEE BY THE AO & CIT(A), HE DID NOT PRODUCE THE REQUIRED DETAILS. 7. AFTER CONSIDERING THE SUBMISSION S OF BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD AS WELL AS THE ORDERS OF REVENUE AUTHORITIES, WE ACCEPT THE REQUEST OF THE LD. AR OF THE ASSESSEE FOR REMITTING THE MATTER BACK TO THE AO FOR DE - NOVO CONSIDERATION. THE AO IS DIRECTED TO EXAMINE IN DEPTH THE BOOKS OF ACCOUNT, BILLS, VOUCHERS, ETC. TO BE SUBMITTED BY THE ASSESSEE BEFORE HIM AND DECIDE THE MATTER IN ACCORDANCE WITH LAW AND ON MERITS AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE DIRECT THE ASSESSEE TO APPEA R BEFORE AO ON OR BEFORE 31 ST JULY, 2021 WITH ALL THE RELEVANT DOCUMENTS ; AT HIS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. I TA NO. 886/ HYD /201 8 M/S DECCAN HEALTH CARE PVT. LTD., HYD . : - 4 - : 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURP OSES. PRONOUNCED IN THE OPEN COURT ON 22 ND APRIL, 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 22 N D APRIL , 20 2 1 . K V C OPY TO : 1 M/S DECCAN HEALTH CARE PVT. LTD., C/O P. MURALI & CO., CAS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82 2 AC IT, CIRCLE 17 ( 1 ) , HYDERABAD. 3 C I T(A) 5 , HYDERABAD. 4 PR. CIT - 5 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.