Sunder Synthetics Private Limited, Secunderabad V. Income Tax Officer, Ward-3(4), Hyderabad

ITA 979/Hyd/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1995 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 30-07-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 15-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: ANAM SIDDIQUI
• Keywords: Fuel Charges
• Section: 132; 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B - SMC BENCH : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 979 /HYD./201 8 ASSESSMENT YEAR: 20 09 - 10 M/S SUNDER SYNTHETICS PRIVATE LIMITED VS. ITO, WARD 3(4) 1 - 7 - 228/44, U.B. COMPLEX HYDERABAD PARADISE CIRCLE SECUNDERABAD 500 003 PAN : AA DCS3983J (APPELLANT) (RESPONDENT) FOR ASSESSE : S MT . ANAM SIDDIQUI, A.R. FOR REVENUE : SMT. MATTA PADMA, D.R. DATE OF HEARING : 30 /07/19 DATE OF PRONOUNCEMENT : 05 /0 9 /19 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR A.Y. 2009 - 10 AGAINST THE ORDER OF THE LD.CIT(A) - 8, HYDERABAD DATED 22 ND MARCH, 2018. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY , IN THE BUSINESS OF MANUFACTURING OF DECORATIVE LAMINATED SHEETS , FILED ITS RETURN O F INCOME FOR THE A.Y. 2009 - 10 ON 25/ 09 /2009 DECLARING INCOME OF RS.25,51,200/ - . THEREAFTER , THE ASSESSEE FILED A RE VISED RETURN OF INCOME ON 23.12.2010 BY DECLARING INCOME OF RS.5,26,199/ - . MEANWHILE, THERE WAS A SEARCH U/S 132 OF THE I.T. ACT, 1961 IN THE CASE OF THE ASSESSEE ALONG WITH SUND A R STEEL GROUP OF CASES. THE ASSESSMENT U/S 143(3) R.W.S. 153A OF THE ACT WAS COMPLETED ON 31.1 2 .201 0 BY MAKING ADDITION ON ACCOUNT OF SUPERVISION CHARGES OF RS.10 ,00,000/ - AND FUEL EXPENSES OF RS.31,06,169/ - RESPECTIVELY BY THE A.O. THE ISSUE TRAVELLED UP TO ITAT WHICH SET AS IDE THE ORDER OF CIT(A) FOR GIVING REASONABLE OPPORTUNITY TO ASSESSEE ON THE ISSUE OF ADDITION OF RS.31,06,169/ - ITA NO. 979/HYD./2018 AY 2009 - 10 SUNDER SYNTHETICS P LTD., SECUNDERABAD 2 AS FUEL CHARGES. CONSEQUENT THERETO , THE A.O. REQUIRED THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNTS , WHICH WERE FURNISHED. THE AO OBSERVED THAT THE ASSESSEE HAS MADE PAYMENTS OF RS. 28,97,889/ - ON A SINGLE DAY BY CASH AND RS.2,08,280/ - BY CHEQUE TO A SINGLE PERSON BY NAME SHRI RAMESH KUMAR. THEREFORE, HE CONSIDERED THE CASH PAYMENTS OF RS.28,98,889/ - AS DOUBTFUL. THE ASSESSEE WAS ASKED TO FURNISH ADDRESS AND PAN DETAILS OF SHRI RAMESH KUMAR AND THE CONFIRMATION OF PAYMENT MADE TO HIM. SINCE THE ASSESSEE COULD NOT PRODUCE SHRI RAMESH KUMAR, THE A.O . PROCEEDED TO DISALLOW THE FUEL CHARGES CLAIMED BY THE ASSESSEE. 3. AGGRIEVED , THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A) , WHO CONFIRMED THE ORDER OF THE A.O. BECAUSE THE ASSESSEE COULD NOT PRODUCE MR.RAMESH KUMAR TO CONFIRM THE PAYMENT OF FUEL CHARGES. 4. AGGRIEVED THE ASSESSEE CAME IN SECOND APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS OF APPEAL. 1. IN COMPUTING THE TOTAL INCOME THE LEARNED ASSESSING OFFICER HAS DISALLOWED THE FOLLOWING AND HONOURABLE CIT(A) - 8 HAS ERRED IN UPHOLDING THE SAME: (A) DISALLOWANCE OF FUEL EXPENDITURE TO THE EXTENT OF RS.31,06,169/ - . 2. FOR THAT, YOUR PETITIONER CRAVES THE RIGHT TO PUT ADDITIONAL GROUNDS AT THE TIME OF APPEAL. 5. AT THE TIME OF HEARING ON 12.07.2019, THE ASSESSSEE REITERATED THE SUBMISSIONS MADE BEFORE THE A.O. AND WHEN THE BENCH ASKED IF ASSESSEE CAN PRODUCE MR.RAMESH KUMAR, LD.COUNSEL FOR ASSESSEE AGREED FOR THE SAME. THEREFORE, CASE WAS ADJOURNED TO 30.07.2019 . ON 30.07.201 THE LD.COUNSEL FOR ASSESSEE PRODUCED A PERSON WHO CLAIMED TO BE MR.RAMESH KUMAR. HE ALSO CONFIRMED ORALLY THAT HE HAS RECEI VED FUEL CHARGES FROM THE ASSESSEE. SINCE THE ASSESSEE HAS PRODUCED A PERSON BY NAME SRI RAMESH KUMAR BEFORE US AND HIS IDENTITY AND GENUINENESS IS TO BE VERIFIED BY THE LOWER AUTHORITIES, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF AO WI TH A DIRECTION TO ASSESSEE TO PRODUCE MR.R AMESH KUMAR BEFORE HIM ALONG WITH THE CONFIRMATION LETTER. THE A.O. SHALL THEN RECONSIDER THE CASE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVEN A ITA NO. 979/HYD./2018 AY 2009 - 10 SUNDER SYNTHETICS P LTD., SECUNDERABAD 3 FAIR OPPORTUNITY OF HEA RING. ACCORDINGLY , WE ALLOW THE APPEAL FOR STATISTICAL PURPOSES. 6. IN THE RESULT , THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 05 TH SEPTEMBER, 2019. SD/ - SD/ - ( S.RIFAUR RAHMAN ) (P MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 05 TH SEPT EMBER, 2019. *GMV COPY FORWARDED TO: 1. M/S SUNDER SYNTHETICS P LTD., 1 - 7 - 228/44, UB COMPLEX, PARADISE CIRCLE, SECUNDERABAD 500 003. 2. ITO, WARD - 3(4) , HYDERABAD. 3. PR.CIT - 3 , HYD. 4. D .R. ITAT HYDERABAD 5. GUARD FILE // C O P Y // ITA NO. 979/HYD./2018 AY 2009 - 10 SUNDER SYNTHETICS P LTD., SECUNDERABAD 4 1. DRAFT DICTATED ON 0 2/08/19 2. DRAFT PLACED BEFORE THE AUTHOR 05/08/19 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY SECOND MEMBER 5. APPROVED DRAFT COMES TO SRPS 6. KEPT FOR PRONOUNCEMENT 05/09/19 7. FILE SENT TO BENCH CLERK