P.Ananda Rao, Hyderabad V. ACIT, Hyderabad

ITA 991/HYD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3211 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-05-2010
• Assessment Year: 1998-1999
• Appeal Filed On: 26-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: S RAMA RAO
• Keywords: Set aside
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMEBR ITA NO.991/HYD/2008 ASSTT. YEAR 1998-99 SHRI PILLI ANANDA RAO, HYDERABAD (PAN NO.AEJPP 6639 R) V/S. ACIT, CIRCLE-5 (1) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. RAMA RAO RESPONDENT BY : SMT. NIVEDITA BISWAS, DR O R D E R PER SHRI G.C. GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 1998-9 9 IS DIRECTED AGAINST THE ORDER OF THE CIT (A). THE GROUND S OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: '1. THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS ) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER IN HOLDING THAT RS.40 LAKHS WAS ADVANCED BY THE APPELL ANT HEREIN AND THAT THERE ARE NO SOURCES FOR THE INVEST MENT MADE. THE LEARNED COMMISSIONER OF INCOME-TAX (APPE ALS) OUGHT TO HAVE SEEN THAT THE SAID AMOUNT OF RS.40 LA KHS WAS INVESTED BY M/S. JAYASHREE ANAND ENTERPRISES AN D WAS ALREADY CONSIDERED IN THE ASSESSMENT OF THE SAI D FIRM AND, THEREFORE, THE SAID AMOUNT OUGHT NOT TO HAVE B EEN CONSIDERED IN THE ASSESSMENT OF THE APPELLANT HEREI N. ITA NO.991/HYD/2008 SHRI PILLI ANANDA RAO, HYDERABAD. 2 3. THE LEARNED COMM ISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER IN ESTIMATING THE PROFIT AT 5% OF THE TURNOVER OR AT RS.1,74,750/- AND FURTHER ERRED IN MAKING ADDITION OF RS.1,09,186/-. 4. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS ) ERRED IN CONFIRMING LEVY OF INTEREST U/S 234A OF RS.74,832/- AND U/S 234B OF RS.7,60,792/-' 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ADDITION WAS MADE ON PROTECTIVE BASIS IN THE HANDS OF T HE ASSESSEE AND THE ADDITION WAS MADE ON SUBSTANTIVE BASIS IN THE CA SE OF M/S JAYASHREE ANAND ENTERPRISES. IN APPEAL IN THE CASE OF M/ S JAYASHREE ANAND ENTERPRISES, THE ISSUE HAS BEEN SET ASIDE TO THE F ILE OF THE CIT (A) BY THE TRIBUNAL IN THE APPEAL OF THE ASSESSEE FOR T HE RELEVANT ASSESSMENT YEAR 1998-99 VIDE ITA NO.58/HYD/2008, DATED 1 3-03- 2008. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RE LIED ON THE ORDER OF THE ASSESSING OFFICER AND THE CIT (A). 3. WE HAVE CONSIDERED THE RIVAL SUBMISSION. WE FIND THAT THE ADDITION IN THE CASE OF THE ASSESSEE WAS MADE ON PROTECTIV E BASIS ONLY AND THE SAME AMOUNT OF RS.40 LAKHS WAS ADDED AS INCOME O N SUBSTANTIVE BASIS IN THE CASE OF M/S. JAYASHREE ANAND ENTE RPRISES. THE TRIBUNAL IN THE APPEAL OF M/S. JAYASHREE ANAND ENTER PRISES IN ITA NO.58/HYD/2008 FOR THE ASSESSMENT YEAR 1998-99 VIDE ORDE R DATED 13-03-2008 HAS SET ASIDE THE ISSUE TO THE FILE OF THE CI T (A). THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE I SSUE IN THE CASE OF M/S. JAYASHREE ANAND ENTERPRISES IS STILL PENDING WITH THE CIT (A). IN THESE FACTS OF THE CASE, WE CONSIDER IT JUST AND P ROPER TO SET ITA NO.991/HYD/2008 SHRI PILLI ANANDA RAO, HYDERABAD. 3 ASIDE THE ISSUE IN THE GROUNDS OF THE APPEAL OF THE ASSESSE E TO THE FILE OF THE CIT (A) TO PASS A DE NOVO APPELLATE ORDER IN A CCORDANCE WITH THE LAW AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. WE DIRECT ACCORDINGLY. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 04-06-2010. SD/- SD/- (AKBER BASHA) (G.C. GUPTA) ACCOUNTANT MEMBER VICE-PRESIDENT PVV/SPS DATE:4TH JUNE,2010. COPY FORWARDED TO: 1. SHRI SHRI PILLI ANANDA RAO, C/O SRI S. RAMA RAO, ADVOCATE, FLAT NO.103, H.NO.3-6-542/4 HIMAYATH NAGAR, STREET NO.7, HY DERABAD 500029 2. THE ASSTT.COMMISSIONER OF INCOME-TAX, CIRCLE-5(1), HY DERABAD 3. THE COMMISSIONER OF INCOME-TAX (APPEALS) V, HYDERABAD . 4. THE COMMISSIONER OF INCOME-TAX-IV, HYDERABAD 5 THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD.