Venkata Sindhu Pusarla , Hyderabad V. Asst. Commissioner of Income Tax, Circle-10(1), Hyderabad

ITA 94/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2458 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2017-2018
• Appeal Filed On: 27-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARAYANA MURTHY NAIK
• Assessee Lawyers: S RAMA RAO
• Section: 143(1); 201; 246A; 13; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 94 /HYD./20 20 ASSESSMENT YEAR: 201 7 - 18 MS. VENKATA SINDHU PUSARLA VS. ACIT, CIRCLE 10 (1) SECUNDERABAD HYDERABAD [PAN: BEMPP3381J ] (APPELLANT) (RESPONDEN T) FOR APPELLANT : SRI S. RAMA RAO, A R FOR RESPONDENT : SRI NARAYANA MURTHY NAIK, DR DATE OF HEARING : 13 /0 5 /2021 DATE OF PRONOUNCEMENT : 25 /06/2021 O R D E R PER S.S. GODARA, J.M. THIS ASSESSEES APPEAL FOR A.Y. 201 7 - 18 ARISES AGAINST THE CIT(A) - 6 HYDERABADS ORDER DATED 12..12. 201 9 PASSED IN CASE NO. 10768 /201 8 - 19 INVOLVING PROCEEDINGS U/S 143( 1 ) OF THE INCOME TAX ACT, 1961 [FOR SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. THE ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL. ITA NO. 94/HYD /2020 AY 2017 - 18 MS. VENKATA SINDHU PUSARLA 2 1. THE CIT (A) - 6 HAVE ERRED IN DISMISSING THE APPEAL FILED BEFORE HIM U / S 246A STATING THAT THE APPEAL IS NOT MAINTAINABLE AS THE ASSESSEE HAVE ALSO OPTED TO FILE A PETITION UL S 154 IN RESPECT OF MISTAKES APPARENT ON RECORD. 2. THE CIT (A) - 6 SHOULD HAVE GRANTED ADJOURNMENT ON THE APPLICATION OF ASSESSE FOR ADJOURNMENT OF THE HEARING AS THE ASSESSEE WAS PURSUING THE PETITION U/S 154 FILED BEFORE ACIT - 10(1), INSTEAD OF DISPOSING THE SAME, EX PARTE. 3 THE CIT(A) - 6 ERRED BY NOT ALLOWING EXEMPTION WITH RESPECT TO THE AWARDS AMOUNTING RS. 79,20,000 / - RECEIVED FROM BHARAT PETROLEUM CORPORATION LIMITED (A GOVERNMENT BODY). SUCH AWARDS ARE EXEMPT U/S 10(17 A). 4. THE CIT (A) - 6 ERRED BY NOT ALLOWING EXEMPTION WITH RESPECT TO THE AWARD' AMOUNTING TO RS. 5,00,000 / - RECEIVED FROM MITTAL CHARITIES. SUCH AWARD S ARE EXEMPT U/ S 56(2)(VII). 5. THE CIT(A) - 6 ERRED BY NOT ALLOWING EXEMPTION WITH RESPECT TO THE AWARDS AMOUNTING TO RS. 1 ,64,29,704 / - RECEIVED FROM VARIOUS OTHER INDIVIDUALS. S UCH AWARDS ARE NOT TREATED AS INCOMES AS DISCUSSED IN THE JUDICIAL PRONOUNCEMENTS IN T HE CASE OF SHRI ABHINAV BINDRA VS. DEPUTY COMMISSIONER OF INC O ME TAX (ITA NO. 2219/DEL / 2013). 2. IT TRANSPIRED AT THE OUTSET THAT THE CIT(A)S LOWER APPELLATE ORDER UNDER CHALLENGE DETERMINING ASSESSEES SEC. 143(1) R.W.S. 154 RECTIFICATION; HAS BEEN P ASSED EX PARTE WITHOUT EVEN INDICATING THE CLINCHING FACT AS TO WHETHER THE ASSESSEE HAD BEEN ACTUALLY SERVED THE RELEVANT HEARING NOTICE OR NOT QUA THE LAST DATE OF HEARING I.E. 21 . 10.2019. WE ALSO NOTICE FROM PAGE 3 PARAS 4.1 AND 4.2 OF THE CIT(A)S ORDER THAT ASSESSEES LOWER APPEAL BEFORE THE CIT(A) HAD BEEN FIXED FOR HEARING ON 30 TH SEPTEMBER , 2019 AND 21 ST OCTOBER , 2019 WHEREAS SHE HAS APPEARED AT THE FIRST INSTANCE AS WELL THE ASSESSEE COULD NOT BE TERMED AS A WILFUL DEFAULTER IN LOWER APPELLATE PROCEEDINGS THEREFORE. WE ACCORDINGLY RESTORE HER INSTANT SUBSTANTIVE GRIEVANCE BACK TO CIT(A) FOR HIS APPROPRIATE ADJ UDICATION AS PER LAW WITHIN 3 EFFECTIVE OPPORTUNITIES OF HEARING. ORDERED ACCORDINGLY. ITA NO. 94/HYD /2020 AY 2017 - 18 MS. VENKATA SINDHU PUSARLA 3 THIS AASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 25 /06/2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 25 TH JUNE, 2021 *GMV COPY OF ORDER FORWARDED TO: 1. MS. VENKATA SINDHU PUSARLA, PLOT NO1, ARCHANA ENCLAVE, EAST MAREDPALLY, SECUNDERABAD 500 026, TELANGANA 2. ACIT, CIRCLE 10 (1), HYDERABAD 3. A CIT, RANGE 10 , HYDERABAD 4 CIT(A) - 6 , HYDERABAD 5 PR.CIT - 6, HYDERABAD . 6 DCIT, CPC, BENGALURU 7 D.R. ITAT HYDERABAD 8 GUARD FILE