ITO , Ward -1, Suryapet V. Sri Anthati Ramulu, Suryapet

ITA 97/HYD/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3046 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 04-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 24-01-2014
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: S RAMA RAO
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ES B , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 9 7 /H YD /201 4 ASSESSMENT YEAR: 20 0 8 - 09 INCOME TAX OFFICER, WARD - 1 , SURYAPET VS SRI ANTHATI RAMULU , SURYAPET [PAN: A IYPA2655H ] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI B. KURMI NAIDU , DR FOR ASSESSEE : SHRI S. RAMA RAO , AR DATE OF HEARING : 0 4 - 0 2 - 201 6 DATE OF PRONOUNCEMENT : 10 - 0 2 - 201 6 O R D E R PER B. RAMAKOT AIAH, A.M. : THIS IS AN APPEAL BY REVENUE AGAINST THE ORDER DATED 30 - 09 - 2013 OF THE COMMISSIONER OF INCOME TAX(APPEALS) - V , HYDERABAD GIVING RELIEF TO THE ORDER U/S. 143(3) OF THE INCOME TAX ACT [ACT] PASSED BY THE ITO, SURYAPET FOR AY. 2008 - 09 DT. 30 - 12 - 2010. CONSEQUENT TO SEARCH OPERATIONS CONDUCTED IN THE BUSINESS PREMISES OF ASSESSEE ON 05 - 03 - 2009 AND KEEPING THE OBSERVATIONS MADE DURING THE COURSE OF SURVEY, THE CASE WAS TAKEN UP FOR SCRUTINY AND ASSESSING OFFICER (AO) MADE AS MANY AS EIGHT ADDITIONS WHICH WERE MORE OR LESS DELETED BY THE LD. CIT(A). I.T.A. NO. 97 / HYD / 201 4 SRI ANTHATI RAMULU : - 2 - : REVENUE IS AGGRIEVED ON THE ACTION OF THE CIT(A) AND RAISED DETAILED GROUNDS . 2. AT THE OUTSET IT WAS FAIRLY ADMITTED BY BOTH PARTIES THAT ON SIMILAR ISSUES IN AY. 2009 - 10, THE ITAT HAS SET ASIDE THE ORDER OF CIT(A) AND RESTORED THE ASSESSMENT TO THE FILE OF THE AO FOR FRESH ADJUDICATION. THE ORDER OF THE ITAT IN AY. 2009 - 10 DT. 01 - 05 - 2015 IS AS UNDER: 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE REVENUE BESIDES CHALLENGING THE ACTION OF THE LEARNED CIT(A) IN DELETING VARIOUS ADDITIONS/DISALLOWANCES MADE BY THE ASSESSING OFFICER, HAS RAISED A PRELIMINARY ISSUE IN THIS APPEAL THAT THE LEARNED CIT(A) HAS ALLOWED SUBSTANTIAL RELIEF TO THE ASSESSEE BY DELETING THE VARIOUS ADDITIONS/DISALLOWANCES MADE BY THE ASSESSING OFFICER RELYING ON BOOKS OF ACCOUNT CLAIMED TO BE DULY COMPLETED BY THE ASSESSEE AFTER THE SURVEY AND PRODUCED BEFORE HIM, WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSING OFFICER TO VERIFY THE SAME. A PERUSAL OF THE IMPUGNED ORDER OF THE LEARNED CIT(A) ALSO CLEARLY SHOWS THAT SUCH COMPLETED BOOKS OF ACCOUNT PRODUCED BY THE ASSESSEE FOR THE FIRST TIME BEFORE HIM HAVE BEEN RELIED UPON BY HIM TO GIVE SUBSTANTIAL RELIEF TO THE ASSESSEE, WITHOUT SEEKING A REMAND REPORT FROM THE ASSESSING OFFICER, AND THIS POSITION IS NOT DISPUTED EVEN BY THE LEARNED COUNSEL FOR THE ASSESSEE AT THE TIME OF HEARING BEFORE US. LEARNED REPRESENTATIVES OF BOTH THE SID ES THEREFORE, HAVE AGREED THAT THE MATTER MAY BE SENT BACK TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE RELEVANT ISSUES AFRESH, AFTER VERIFYING THE BOOKS OF ACCOUNT OF THE ASSESSEE DULY COMPLETED AND AFTER GIVING THE ASSESSEE OPPORTUNITY OF BEING HEARD. ACCORDINGLY WE SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING ALL THE RELEVANT ISSUES, AFRESH, AFTER VERIFYING THE COMPLETED BOOKS OF ACCOUNT OF THE ASSESSEE. THE ASSESS ING OFFICER SHALL AFFORD PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, WHO WILL BE FREE TO FILE ANY OTHER RELEVANT EVIDENCES IN SUPPORT OF HIS CASE ON THE ISSUES INVOLVED . 3. AS THE PARTIES AGREE D TO RESTORE THE MATTER TO THE AO FOR F RESH ADJUDICATION, WITHOUT GOING TO THE MERITS OR DEMERITS OF THE ADDITIONS MADE BY AO AND DELETIONS BY THE CIT(A), WE CANCEL THE I.T.A. NO. 97 / HYD / 201 4 SRI ANTHATI RAMULU : - 3 - : ORDERS OF THE AO AND CIT(A) AND RESTORE THE ASSESSMENT TO THE FILE OF THE AO FOR FRESH COMPUTATION OF INCOME. NEEDLESS TO SAY THAT ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY AND HIS SUBMISSIONS SHOULD BE CONSIDERED BY THE AO. 4. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH FEBRU ARY , 201 6 SD/ - SD/ - (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 10 TH FEBRUARY, 2016 TNMM COPY TO : 1. INCOME TAX OFFICER, WARD - 1, KRISHNANAGAR COLONY, O PP : HI TECH BUS STAND, SURYAPET. 2 . SRI ANTHATI RAMUL U , S/O. PANDAIAH, PROP: M/S. SRI KANAKADURGA JEWELLERS, D.NO. 1 - 6 - 141/9/2/8/3, VIDYANAGAR, SURYAPET. 3 . CIT (APPEALS) - V , HYDERABAD. 4. CIT - VI , HYDERABAD. 5 . D.R. ITAT, HYDERABAD. 6 . GUARD FILE.