M/s. Sri Vani Cotton Corporation, Hyderabad V. Commissioner of Income Ta - III, Hyderabad

ITA 972/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87446 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 27-03-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 19-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G APARNA RAO
• Assessee Lawyers: A V RAGHURAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A'(SMC), HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER ITA NO.972/HYD/14 : ASSESSMENT YEAR 2009 - 10 M/S. SRI VANI COTTON CORPORATION, NANDYAL. (PAN AAFFS 0855 E ) V/S. INCOME TAX OFFICER WARD - 2, NANDYAL (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI A.V.RAGHURAM RESPONDENT BY : SMT. G.APARNA RAO DATE OF HEARING 27 .0 3 .201 5 DATE OF PRONOUNCEMENT 27.03.2015 O R D E R THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX III, HYDERABAD DATED 5.3.2014 PASSED UN D ER S.263 OF THE INCOME TAX ACT,1961. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHIP FIRM WHI C H F IL E D ITS RETURN OF IN C OM E FOR THE YEAR UN D ER CONSIDE R A T ION ON 19.9.2009 DECLARING TOTAL INCOME OF RS.1,47,992. IN TH E ASSESSMENT ORIGINALLY C OM P L E TED UN D ER S.143(3) VIDE ORDER DATED 30.8.2011, THE TOTAL INCOME O F TH E ASSESSEE WAS DETERMINED BY TH E ASSESSING OFFICER AT RS.2,97 ,992, AFTER MAKIN G DISALLOWANCE OF CERT A IN EXPENSES AMOUN T IN G TO R S .1, 4 5,000. TH E RECORD OF THE SAID ASSESSMENT CAME TO BE SUBSEQUENTLY EXAMIN E D BY THE LEARNED COMMISSIONER AND ON SUCH EXAMINATION, S HE FOUND THAT CERTAIN ISSUES INVOLVED IN THE CA S E OF THE ASSESSEE WERE NO T PROPERLY VERIFIED BY THE ASSESSING OFFICER, AND THE CLAIM OF THE ASSESSEE ON THESE ISSUES WAS ACCEPTED BY THE ASSESSING OFFICER WITHOUT CAUSING PRO P ER AND ADEQUATE ENQUIRIES, AS REQUIRED IN TH E F A CTS AND ITA NO.972/HYD/2014 SRI VANI COTTON CORPORATION, NANDYAL. 2 CIR C UM S TANCES OF THE CA S E. SH E TH E R E FORE, ISSUED A NOTICE UN D ER S.263 REQUI R ING THE ASSESSEE TO OFFER ITS EXPLANATION AS TO WHY THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER UN D ER S.143(3 ) SHOULD NO T B E REVISED. THE EXPLANATION OFFERED BY THE ASSESSEE IN RESPONSE TO THE SAID NO TICE WAS NO T FOUND ACCEPTABLE BY THE LEARNED COMMISSIONER , AND ACCORDINGLY, SHE SET ASIDE THE ORDER PASSED BY THE ASSESSING OFFICER UN D ER S.143(3) WITH A DIRECTION TO TH E ASSESSING OFFICER TO REDO THE ASSESSMENT , AFTER CARRYING OUT NECESSARY ENQUI R I E S ON T HE I S SU E S, AS POIN T ED OUT BY HER IN TH E ORDER PASS ED UN D ER S .263. AGGRI E VED BY TH E O R DER OF THE LEARNED COMMISSIONER PASSED UN D ER S.26 3 , ASSESSEE HAS PREFERRED THIS APPEAL B E FORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. I T IS OB S ERVED THAT THE ORDER PASS ED BY THE ASSESSING OFFICER UN D ER S.143(3) IS REVISED BY THE LEARNED COMMISSIONER OF INCOME - TAX VIDE HER IMPUGNED ORDER PASSED UN D ER S.263 ON THE GROUND THAT PROPER AND SU FF ICIENT ENQUIRIES, AS WARRAN T ED IN TH E FACTS AND CIRCUMSTANCES OF THE CASE , WERE NO T CON D U C TED BY THE ASSESSING OFFICER WHIL E COMP L ETING THE ASSESSMENT OF TH E ASSESSEE FOR THE YEAR UN D E R CON S I D ERATION. SUCH ENQUI RI ES WHICH SHOULD HAVE BEEN DONE BY THE ASSESSING O FFICER WERE ALSO SP E CIFICALLY POINTED OUT BY THE LEARNED COMMISSIONER IN THE NO T I C E ISSUED UNDER S.263 AS WELL AS IN THE IMPUGN E D ORDER PASSED UN D ER S.263. A T THE TIME OF HEARING BEFORE US, THE LEARNED COUNSEL FO R THE ASSESSEE HA S NOT BEEN ABLE TO DEMON S T RATE ON THE BASIS OF ANY DOC UMEN TARY EVIDENCE THAT SUCH ENQUIRIES IN FACT WERE CON D U C TED BY TH E ASSESSING OFFICER DURING THE COUR S E OF ASSESSMENT PROCEEDINGS UN D ER S.143(3). IT , THEREFORE, FOLLO W S THAT THE ASSESSMENT IN THE C AS E OF THE ASSESSEE FOR THE YEAR UN D ER CONSIDERATION WAS COMPLETED BY THE ASSESSING OFFICER WITHOUT CON D U C TING PROPER AND ADEQUATE ENQUI R I E S AS WARRAN T ED IN TH E FACTS ITA NO.972/HYD/2014 SRI VANI COTTON CORPORATION, NANDYAL. 3 AND CIRCUMSTANCES OF THE CASE, AND THE ASSESSMENT ORDER PASSED BY HIM UN D ER S.143(3) THUS WAS ERRONEOUS AS WELL AS PREJU D I C I A L TO TH E INTERESTS OF THE REVENUE, CALLING FOR REVISION UN D ER S.263 BY THE LEARNED COMMISSIONER. I TH E R E F O RE, FIND NO INFIRMITY IN THE ORDER PASSED BY THE DISALLOWED COMMISSIONER UN D ER S.263 AND UPHOLDING THE SAME, I DISMISS THE APPEAL FIL E D BY TH E ASSESSEE . 4. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 27 TH MARCH, 2015 SD/ - ( P.M.JAGTAP ) ACCOUNTANT MEMBER DT/ - 27 TH MARCH , 201 5 COPY FORWARDED TO: 1. M/S. SRI VANI COTTON CORPORATION(NANDYAL) C/O.SHRI PUSHYAM KIRAN, ADVOCATE, FLAT NO. 1 ST FLOOR, UMA ENCLAVE, ROAD NO.9, BANJARA HILLS, HYDERABAD . 2 . INCOME TAX OFFICER WARD 2, NANDYAL 3. COMMISSIONER OF INCOME - TAX III, HYDERABAD 4 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S