M/s. Bhuvi Ventures (P) Ltd., Hyderabad V. Dy.CIT, Central Circle-7, Hyderabad

ITA 93/HYD/2014

• Counselvise Citation: 9322514 RSA 2014
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 23-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N NAGARAJU
• Keywords: Opportunity of being heard
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 93/HYD/2014 ASSESSMENT YEAR : 2006-07 M/S BHUVI VENTURES (P) LTD., HYDERABAD. PAN AACCB 8144P ASST. COMMISSIONER OF INCOME- TAX, CENTRAL CIRCLE 5, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI N. NAGARAJU REVENUE BY SHRI SOLGY JOSE T. KOTTARAM DATE OF HEARING 27-08-2014 DATE OF PRONOUNCEMENT 05-09-2014 O R D E R PER SAKTIJIT DEY, J.M.: THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DA TED 15/02/2010 OF THE CIT(A)-I, HYDERABAD DISMISSING AS SESSEES APPEAL BY CONFIRMING THE ADDITIONS MADE BY THE AO. 2. BRIEFLY THE FACTS ARE, ASSESSEE A COMPANY IS ENG AGED IN THE BUSINESS OF REAL ESTATES. FOR THE IMPUGNED ASSESSME NT YEAR, ASSESSEE FILED ITS RETURN OF INCOME ORIGINALLY DECL ARING TOTAL INCOME OF RS. 48,737/-. SUBSEQUENTLY ON 09/10/2007 A SEARCH A ND SEIZURE OPERATION U/S 132 OF THE ACT WAS CONDUCTED IN CASE OF THE ASSESSEE AS WELL AS OTHER GROUP CONCERNS. AS A CONSEQUENCE O F THE SEARCH, A NOTICE U/S 153AOF THE ACT WAS ISSUED TO THE ASSESSE E CALLING FOR A RETURN OF INCOME AND IN RESPONSE TO THE SAID NOTIC E, ASSESSEE FILED A RETURN OF INCOME ON 18/12/2008 DECLARING NIL INCOME . DURING THE 2 ITA NO. 93/HYD/2014 M/S BHUVI VENTRUES (P) LTD. ASSESSMENT PROCEEDING, AO AFTER EXAMINING THE SEIZE D MATERIAL AND OTHER EVIDENCES AVAILABLE ON RECORD, CAME TO A CONC LUSION THAT ASSESSEE HAD MADE PAYMENTS TO LAND OWNERS OUTSIDE T HE BOOKS OF ACCOUNT TO THE TUNE OF RS. 3,24,95,759. AS STATED B Y AO, IN ABSENCE OF VALID EXPLANATIONS BY THE ASSESSEE, THE AMOUNT W AS ADDED TO THE INCOME OF THE IMPUGNED ASSESSMENT YEAR. BEING AGGRI EVED OF THE ADDITIONS MADE BY THE AO, ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). 3. AS NOTED BY CIT(A) IN PARA 3 OF HIS ORDER, EVEN THOUGH, ASSESSEE WAS GRANTED OPPORTUNITIES ON SIX OCCASIONS STARTING FROM 29/06/09 TO 15/02/10, ON NONE OF THE OCCASIONS, ASS ESSEE APPEARED FOR HEARING OF THE APPEAL. CIT(A) NOTED THAT ON ALL THE DATES FIXED EITHER THERE WAS NO COMPLIANCE FROM ASSESSEE SIDE O R PETITIONS WERE FILED SEEKING ADJOURNMENTS ON FLIMSY GROUNDS. THER EFORE, CIT(A) FINDING NO OTHER ALTERNATIVE, PROCEEDED TO DISPOSE OF THE APPEAL EXPARTE. ON THE BASIS OF FACTS AND MATERIALS ON RE CORD, CIT(A) FINALLY CONCLUDED THAT ADDITIONS MADE BY THE AO WERE JUSTIF IED AS THEY WERE BASED ON THE SEIZED MATERIAL AND ASSESSEE HAS NOT B EEN ABLE TO EXPLAIN THE INVESTMENTS MADE. BEING AGGRIEVED OF TH E AFORESAID ORDER OF CIT(A), ASSESSEE IS BEFORE US. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS ON RECORD AS WELL AS THE ORDERS OF THE REVENUE AUTHORITIES. 5. THE SOLE GRIEVANCE OF ASSESSEE BEFORE US IS CIT( A) WITHOUT AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD T O ASSESSEE HAS DISPOSED OF THE APPEAL EXPARTE BY CONFIRMING THE AD DITIONS MADE. IT WAS SUBMITTED THAT CONSIDERING THE QUANTUM AND NATU RE OF ADDITION, CIT(A) SHOULD HAVE GRANTED ADEQUATE OPPORTUNITY TO THE ASSESSEE TO EXPLAIN HIS CASE. 3 ITA NO. 93/HYD/2014 M/S BHUVI VENTRUES (P) LTD. 6. LEARNED DR, ON THE OTHER HAND, SUBMITTED THAT AS THE MATERIAL ON RECORD WOULD SHOW THOUGH ASSESSEE WAS GRANTED SU FFICIENT OPPORTUNITY BY CIT(A) SINCE HE FAILED TO REPRESENT HIS CASE, CIT(A) WAS COMPELLED TO DISPOSE OF APPEAL ON THE BASIS OF THE MATERIAL ON RECORD. 7. AFTER CONSIDERING RIVAL SUBMISSIONS, WE ARE OF T HE VIEW THAT ASSESSEES CONTENTION THAT IT WAS NOT GRANTED ADEQU ATE OPPORTUNITY TO REPRESENT ITS CASE CANNOT BE ACCEPTED AS IT IS NOT BORNE OUT FROM RECORD. AS IS EVIDENT FROM ORDER OF CIT(A), THOUGH, ASSESSEE WAS GRANTED OPPORTUNITY FROM 29/06/09 TO 15/02/10 SPREA DING OVER A PERIOD OF ALMOST EIGHT MONTHS, HE FAILED TO REPRESE NT HIS CASE. IN THESE CIRCUMSTANCES, CIT(A) WAS LEFT WITH NO OTHER OPTION, BUT, TO DISPOSE OF THE APPEAL EXPARTE. HOWEVER, AS IT APPEA RS FROM THE FINDING OF CIT(A) IN PARA 3.2 OF HIS ORDER, HE HAS SIMPLY CONFIRMED THE ADDITIONS MADE BY AO WITHOUT PROPERLY EXAMINING THE FACTS AND MATERIALS ON RECORD. THEREFORE CONSIDERING THE NATU RE OF DISPUTE AND ALSO UNDERTAKING GIVEN BY LEARNED AR REPRESENTING A SSESSEE THAT ASSESSEE WILL COOPERATE IN HEARING OF APPEAL BY APP EARING BEFORE CIT(A) AND PRODUCING NECESSARY EVIDENCES, WE ARE IN CLINED TO REMIT THE MATTER BACK TO THE FILE OF CIT(A) FOR GRANTING ONE MORE OPPORTUNITY TO ASSESSEE TO REPRESENT HIS CASE BY PRODUCING NECE SSARY EVIDENCE BEFORE CIT(A). HOWEVER, WE MAKE IT CLEAR THAT IF TH ERE IS STILL NON- COOPERATION FROM THE SIDE OF THE ASSESSEE ON THE DA TE OF HEARING FIXED BY CIT(A) OR HE FAILS TO APPEAR, THEN, CIT W ILL BE AT LIBERTY TO DECIDE THE APPEAL ON THE BASIS OF THE FACTS AND MAT ERIALS AVAILABLE ON RECORD AND IN ACCORDANCE WITH LAW. 4 ITA NO. 93/HYD/2014 M/S BHUVI VENTRUES (P) LTD. 8. IN THE RESULT, ASSESSEES APPEAL IS CONSIDERED T O BE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 05/09/2014. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JU DICIAL MEMBER HYDERABAD, DATED: 5 TH SEPTEMBER, 2014 KV COPY TO:- 1) M/S BHUVI VENTURES (P) LTD., C/O N. NAGARAJU, ADVOCATE & TAX CONSULTANT, FLAT NO. 12, MANOHAR APT S., VIDYANAGAR, HYDERABAD 500 044. 2) DCIT, CENTRAL CIRCLE 7, HYDERABAD 3) CIT(A)-I, HYDERABAD. 4) CIT(CENTRAL), HYDERABAD 5)THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDER ABAD.