Ganga Industrial Corporation Ltd, Hyderabad V. ITO, Hyderabad

ITA 89/HYD/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3213 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 19-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: P MURALI MOHAN RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT & SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER I.T.A. NO. 89/HYD/2011 ASSESSMENT YEAR 2007-08 M/S. GANGA INDUSTRIAL CORPORATION LTD., HYDERABAD PAN: AAACG7474K VS. INCOME - TAX OFFICER WARD-2(2), HYDERABAD APPL IC ANT RESPONDENT APPELLANT BY: SHRI P. MURALI MOHAN RAO RESPONDENT BY: SMT. NIVEDITA BISWAS O R D E R PER G.C. GUPTA, VP : THIS APPEAL BY THE ASSESSEE, FOR THE ASSESSMENT YE AR 2007-08, IS DIRECTED AGAINST THE ORDER OF THE CIT(A )-III, HYDERABAD DATED 24.11.2010. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE MAIN ISSUE IN THIS APPEAL OF THE ASSESSEE IS REGAR DING ESTIMATION OF INCOME OF THE ASSESSEE ON PERCENTAGE BASI S BY REJECTING THE BOOKS OF ACCOUNT OF THE ASSESSEE. HE SUBMITTED THAT THE FACTS WERE NOT PROPERLY APPRECIATED BY THE ASSESSING OFFICER AND THE CIT(A) AND, THEREFORE, THE ISSUE MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFF ICER FOR A DE NOVO ASSESSMENT. 3. THE LEARNED DR HAS RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CI T(A). I.T.A. NO. 89/HYD/2011 M/S. GANGA INDUSTRIAL CORPN. LTD. ========================= 2 WE FIND THAT THE FACTS OF THE CASE OF THE ASSESSEE DESE RVE TO BE RE-APPRECIATED IN ACCORDANCE WITH LAW. THE ASSE SSEE HAS SERIOUSLY CHALLENGED THE FINDING OF THE ASSESSIN G OFFICER THAT THE BOOKS OF ACCOUNT WERE NOT MAINTAINED BY THE ASSESSEE. THE CASE OF THE ASSESSEE IS THAT THE BOOK S OF ACCOUNT MAINTAINED BY THE ASSESSEE ARE COMPLETE AND TH E EXPENDITURE CLAIMED WAS FULLY VOUCHED. IN THESE FACTS OF THE CASE, WE ARE OF THE VIEW THAT IT SHALL BE IN THE INTER EST OF JUSTICE TO SET ASIDE THE ISSUE IN THE GROUNDS OF APP EAL OF THE ASSESSEE TO THE FILE OF THE ASSESSING OFFICER WITH DIRECTION TO FRAME A DE NOVO ASSESSMENT IN ACCORDANCE WITH LAW AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JULY, 2011. SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (G.C. GUPTA) VICE PRESIDENT HYDERABAD, DATED 8 TH JULY, 2011 TPRAO COPY FORWARDED TO: 1. M/S. GANGA INDUSTRIAL CORPORATION LTD., C/O. M/S . P. MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD-82. 2. THE INCOME-TAX OFFICER, WARD-2(2), HYDERABAD. 3. THE CIT(A)-III, HYDERABAD 4 THE CIT-II, HYDERABAD. 5. THE DR A BENCH, ITAT, HYDERABAD `