I. Mallappa Raju, Hyderabad V. Dy.CIT, Central Circle-8, Hyderabad

ITA 968/HYD/2014

• Counselvise Citation: 96822514 RSA 2014
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 19-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 234B; 147; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICAL MEMBER ITA.NO. A.Y. APPELLANT RESPONDENT 967/HYD/2014 2003-04 D. SATYANARAYANA RAJU, HYDERABAD DCIT, CENTRAL CIRCLE-8, HYDERABAD. 968/HYD/2014 I. MALLAPPA RAJU, HYDERABAD. 969/HYD/2014 A. BHASKARA RAJU, HYDERABAD. FOR ASSESSEE : MR. K.C. DEVDAS FOR REVENUE : MR. R. MOHAN REDDY DATE OF HEARING : 08.09.2014 DATE OF PRONOUNCEMENT : 12.09.2014 ORDER PER B. RAMAKOTAIAH, A.M. THESE THREE APPEALS ARE BY ASSESSEES AGAINST THE SEPARATE ORDERS OF THE LD. CIT(A)-VII, HYDERABAD DA TED 28.03.2014. 2. BRIEFLY STATED, ASSESSEES HEREIN HAVE PREFERRED APPEALS BEFORE THE LD. CIT(A) WITH REFERENCE TO THE ORDER P ASSED UNDER SECTION 143(3) READ WITH SECTION 147 BY THE DCIT, C ENTRAL CIRCLE-8, HYDERABAD FOR A.Y. 2003-04. IT SO HAPPENED THAT LD. CIT, CENTRAL, VIDE HIS ORDERS DATED 12.03.2013 INITIATED PROCEEDI NGS UNDER SECTION 263 ON A SEPARATE ISSUE AND GAVE DIRECTIONS TO THE A.O. BY SETTING ASIDE THE ASSESSMENT WITH A DIRECTION TO EX AMINE THE ISSUES INVOLVED. MAINLY THE ISSUE ON WHICH PROCEEDI NGS U/S 263 WAS DONE IS WITH REFERENCE TO QUANTIFICATION OF AGR ICULTURAL INCOME EARNED ON POSSESSION OF AGRICULTURAL LANDS AND CONS IDERING THE 2 ITA.NO.967, 968 & 969/HYD/2014 MR. D. SATYANARAYANA RAJU, MR. I. MALLAPPA RAJU, & MR. A. BHASKARA RAJU, HYDERABAD SAME FOR THE PURPOSE OF COMPUTATION OF TAX. THERE A RE SMALLER ISSUES LIKE BRINGING TO TAX THE PENSION EARNED AS WELL AS INTEREST UNDER SECTION 234B BUT NOT IN ALL CASES. BE THAT AS IT MAY, LD. CIT HAS GIVEN SPECIFIC DIRECTIONS TO EXAMINE ON A PARTI CULAR ISSUE. THESE ORDERS U/S SECTION 263 ARE IN APPEAL SEPARATE LY. 3. LD. CIT(A) DISMISSED THE APPEALS WITHOUT CONSID ERING ANY OF THE ISSUES RAISED BEFORE HIM ON THE REASON T HAT LD. CIT SET ASIDE THE ASSESSMENT U/S 263, THEREFORE, PRESENT AP PEALS REQUIRE NO ADJUDICATION. 4. LD. COUNSEL REFERRING TO THE GROUNDS RAISED BEF ORE THE LD. CIT(A) AND THE ISSUES INVOLVED IN PROCEEDINGS U NDER SECTION 263 SUBMITTED THAT THESE TWO PROCEEDINGS ARE INDEPE NDENT AND LD. CIT DID NOT SET ASIDE THE ENTIRE ASSESSMENT BUT GAVE SPECIFIC DIRECTIONS FOR EXAMINING ONE PARTICULAR ISSUE FOR T HE PURPOSE OF DETERMINING THE AGRICULTURAL INCOME AND ADOPTING IT FOR RATE PURPOSE. THEREFORE, THE ISSUES WHICH ARE RAISED BEF ORE THE LD. CIT(A) REQUIRE SEPARATE ADJUDICATION BECAUSE LD. CI T HAS NOT DECIDED THOSE ISSUES AT ALL IN THE ORDER UNDER 263. IT WAS THE SUBMISSION THAT APPEALS ARE TO BE RESTORED TO THE F ILE OF LD. CIT(A) FOR ADJUDICATING THE GROUNDS RAISED BEFORE HIM. 5. LEARNED D.R. HOWEVER, HAS NO OBJECTION IF THE M ATTERS ARE RESTORED TO THE FILE OF LD. CIT(A). 6. HAVING EXAMINED THE RECORD AND PERUSING THE ORD ERS OF LD. CIT UNDER SECTION 263 AND GROUNDS RAISED BEF ORE LD. CIT(A) IN ALL THESE APPEALS, WE ARE OF THE OPINION THAT TH E ISSUES FOR ADJUDICATION BEFORE LD. CIT(A) ARE ENTIRELY DIFFERE NT THAN THE ISSUES ON WHICH LD. CIT GAVE DIRECTIONS UNDER 263. THE PRO CEEDINGS UNDER SECTION 263 HAVE NOT BEEN TAKEN-UP ON THE ISS UES WHICH ARE 3 ITA.NO.967, 968 & 969/HYD/2014 MR. D. SATYANARAYANA RAJU, MR. I. MALLAPPA RAJU, & MR. A. BHASKARA RAJU, HYDERABAD PENDING BEFORE LD. CIT(A). CONSEQUENTLY THERE IS NO MERGER OF ORDERS OR ISSUES. LD. CIT(A) IS FREE TO DECIDE THE ISSUES INDEPENDENT OF THE ORDERS UNDER SECTION 263. THEREF ORE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) IN THESE CASES AN D RESTORE THE APPEALS BEFORE HIM. LD. CIT(A) IS DIRECTED TO ADJU DICATE THE GROUNDS RAISED BEFORE HIM, AFTER GIVING A DUE OPPOR TUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, APPEALS OF THESE ASSESSEES ARE A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12.09.2014. SD/- SD/- (SAKTIJIT DEY) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 12 TH SEPTEMBER, 2014 VBP/- COPY TO 1. MR. D. SATYANARAYANA RAJU, PLOT NO.80, ROAD NO.9 , JUBILEE HILLS, HYDERABAD 500 033. 2. MR. I. MALLAPPA RAJU, PLOT NO.80, ROAD NO.9, JUB ILEE HILLS, HYDERABAD 500 033. 3. MR. A. BHASKARA RAJU, PLOT NO.80, ROAD NO.9, JUB ILEE HILLS, HYDERABAD 500 033. 4. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-8 , 7 TH FLOOR, AAYKAR BHAVAN, BASHEERBAGH, HYDERABAD. 5. CIT(A)-VII, HYDERABAD + 3 COPIES 6. CIT (CENTRAL), HYDERABAD 7. D.R. A BENCH, ITAT, HYDERABAD.