Madhave Hytech Engineers Pvt. Ltd., Hyd, Hyderabad V. ITO, Ward-16(2), Hyderabad, Hyderabad

ITA 898/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6235 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 15-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P. MURALI
• Keywords: Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

1 ITA.NO.898/HYD/2016 MADHAVA HYTECH ENGINEERS P. LTD., HYDERABAD. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.898/HYD/2016 ASSESSMENT YEAR 2007-2008 MADHAVA HYTECH ENGINEERS P. LTD., HYDERABAD 500 029. PAN AABCM3921A VS. THE ITO, WARD-16(2), HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P. MURALI FOR REVENUE : SHRI A. SITARAMA RAO DATE OF HEARING : 16.01.2017 DATE OF PRONOUNCEMENT : 16.01.2017 ORDER PER S. RIFAUR RAHMAN, A.M. THIS APPEAL BY THE ASSESSEE-COMPANY IS DIRECTED AG AINST THE ORDER PASSED BY THE CIT(A)-4, HYDERABAD AND IT PERTAI NS TO THE A.Y. 2007-2008. 2. THE ASSESSMENT WAS COMPLETED ON A TOTAL INCOME OF RS.1.89 CRORES BY MAKING AN ADDITION OF RS.11,55,284 WHEREAS , ON AN APPEAL FILED BY THE ASSESSEE, THE LD. CIT(A) ENHANCED THE TOTAL INCOME BY RS.5.32 CRORES. 3. AS PER SECTION 251(2) OF THE ACT, IT IS THE DUTY OF THE CIT(A) TO ISSUE A NOTICE TO THE ASSESSEE EXPLAINING HIS/HER I NTENT TO ENHANCE THE ASSESSMENT SO THAT THE ASSESSEE CAN FURNISH AN APPRO PRIATE REPLY THEREOF, WHEREAS, IN THE INSTANT CASE, THE LD. CIT(A) E NHANCED THE 2 ITA.NO.898/HYD/2016 MADHAVA HYTECH ENGINEERS P. LTD., HYDERABAD. ASSESSMENT WITHOUT FORMALLY FOLLOWING THE PROCEDURE, AS CONTENDED BY THE LEARNED COUNSEL FOR THE ASSESSEE, VIDE ADDITIONAL GROUNDS FILED BEFORE US. 4. THE LD. D.R. ADMITTED THAT THE ORDER PASSED BY THE CI T(A) DOES NOT INDICATE ABOUT THE ISSUANCE OF NOTICE UNDER SE CTION 251(2) OF THE ACT BUT SUBMITTED THAT THE CIT(A) RECORD MIGHT INDICAT E THE FACTUAL POSITION. AS PER THE PROCEDURE LAID DOWN BY THE CBDT, IT IS INCUMBENT ON THE PART OF THE RESPONDENT/A.O. TO FURNISH ALL THE DE TAILS TO THE LD. D.R. SO AS TO EFFECTIVELY ARGUE THE APPEAL. IT IS NOT I N DISPUTE THAT A SPECIFIC GROUND WAS RAISED BY THE LEARNED COUNSEL FO R THE ASSESSEE BY WAY OF ADDITIONAL GROUNDS OF APPEAL BEFORE US. THE C IT(A) ORDER ALSO DOES NOT INDICATE ANYTHING TO THE EFFECT THAT A SHOW CAU SE NOTICE WAS ISSUED UNDER SECTION 251(2) OF THE ACT. UNDER THESE CIR CUMSTANCES, WE ARE OF THE VIEW THAT THE INTEREST OF JUSTICE WOULD BE F AIRLY MET IF THE ORDER PASSED BY THE CIT(A) IS SET ASIDE WITH A DIRECTION TO T HE CIT(A) TO RE- CONSIDER THE MATTER IN ACCORDANCE WITH LAW. SINCE THE ORDER PASSED BY THE CIT(A) IS SET ASIDE, IT IS NOT NECESSARY FOR US TO GO INTO THE MERITS OF THE ISSUES. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16.01.2017. SD/- SD/- (D.MANMOHAN) (S. RIFAUR RAHMAN) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD, DATED 16 TH JANUARY, 2017. VBP/- 3 ITA.NO.898/HYD/2016 MADHAVA HYTECH ENGINEERS P. LTD., HYDERABAD. COPY TO 1. MADHAVA HYTECH ENGINEERS P. LTD., HYDERABAD 500 029 . C/O. SHRI P. MURALI OF M/S. TUKARAM & CO., CHARTERE D ACCOUNTANTS, # 3-6-69, FLAT NO.209, VENKATARAMA TOWERS, OPP. TALWALKARS, BASHEERBAGH, HYDERABAD 500 029. 2. THE INCOME TAX OFFICER, WARD-16(2), HYDERABAD. 3. CIT(A)-4, 2 ND FLOOR ANNEXE, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500 004. 4. PR. CIT-4, HYDERABAD. 5. D.R. ITAT A BENCH, HYDERABAD. 6. GUARD FILE