Sri Golayya Hiremath Contractor , Kalaburagi V. Assistant Commissioner of Income Tax Circle-1, Kalaburagi

ITA 992/BANG/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9692 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B S BALACHANDRAN
• Keywords: Reassessment proceedings; TDS; Set aside
• Section: 143(3); 250; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES A BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 992 /BANG/201 7 (ASSESSMENT YEAR: 20 09 - 10 ) SHRI GOLAYYA HIREMATH, CONTRACTOR, HULLOOR NIVAS, VIDYA NAGAR, JEWARGI, DIST. KALABURAGI. .APPELLANT . PAN AATPH 1475K VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1, SEDAM ROAD, KALABURAGI. RESPONDENT. ASSESSEE BY: SHRI B.S. BALACHANDRAN, ADVOCATE. REVENUE BY: SHRI SUNIL KUMAR AGARWAL, ADDL. CIT (D.R) DATE OF HEARING : 28.11 .2019 DATE OF PRONOUNCEMENT : 03 . 0 1 .20 20 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX, GULBARGA PASSED UNDER SECTION 143(3) R.W.S. 147 AND 250 OF THE INCOME TAX ACT, 1961 ('THE ACT'). 2 ITA NO. 992/BANG/2017 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S ENGAGED IN THE BUSINESS OF EXECUTION OF CIVIL CONTRACT WORKS AND FILED THE RETURN OF INCOME FOR THE 3 ITA NO. 992/BANG/2017 ASSESSMENT YEAR 2009 - 10 ON 31.08.2009 WITH TOTAL INCOME OF RS.36,67,130 AND ASSESSMENT ORDER UNDER SECTION 143(3) OF THE ACT DT.29.11.2011 WAS COMPLETED WITH THE TOTAL INCOME OF RS.42,30,430. SUBSEQUENTLY, THE ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 148 OF THE ACT AND IN RESPONSE THE A SSESSEE FILED A LETTER ON 5.2.2015 TO TREAT THE RETURN OF INCOME FILED ON 31.08.2009 AS DUE COMPLIANCE . IN THE REASSESSMENT PROCEEDINGS, T HE LEARNED AUTHORISED REPRESENTATIVE APPEARED FROM TIME TO TIME . T HE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS CLAIMED THE EXPENDITURE OF HIRE CHARGES, TRANSPORT CHARGES AND A UDIT FEES WITH OUT DEDUCTION OF TDS ON PAYMENTS AND MADE DISALLOWANCE OF CLAIMS FOR NON - DEDUCTION OF TDS A ND ASSESSED THE TOTAL INCOME OF RS.1,31,09,020 AND PASSED ORDER UNDER SECTION 143(3) R.W. SECTION 147 OF THE ACT DT.7.1.2016. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED APPEAL WITH THE CIT(APPEALS). THE ASSESSEE HAS CHALLENGED THE VALIDITY OF ISSUE OF NOTICE UNDER SECTION 148 OF THE ACT AND OTHER GROUNDS OF APPEAL. WHEREAS THE CIT(A PPEALS) CONC URRED WITH ACTION OF ASSESSING OFFICER AND DISMISSED THE ASSESSEE'S APPEAL. AGGRIEVED BY THE ORDER OF CIT(APPEALS), THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORISED REPRESENTATIVE H AS RESTRICTED HIS ARGUMENTS ON THE LEGAL ISSUE O F NOTICE UNDER SECTION 148 OF THE ACT WHICH IS BAD IN LAW FURTHER THE CIT(APPEALS) HAS NOT GIVEN ANY FINDINGS ON THE DISPUTED ISSUES WHERE THE ASSESSEE HAS CHALLENGED AS ILLEGAL AND PRAYED FOR ALLOWING THE 4 ITA NO. 992/BANG/2017 A PPEAL. CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE LEARNED AUTHORISED REPRESENTATIVE ARGUED THAT THE CIT(APPEALS) HAS NOT CONSI DERED THE FACT S. THE ASSESSING OFFICER HAS NOT RECORDED REASONS FOR ISSUE OF NOTICE UNDER SECTION 148 OF THE ACT AND A RE ALSO NOT PROVIDED TO THE ASSESSEE. THE CONTENTIONS OF THE LEARNED AUTHORISED REPRESENTATIVE ARE THAT THE REASONS RECORDED FOR REASSE SSMENT PROCEEDINGS ARE NOT CLEAR AND THE CIT(APPEALS) HAS NOT GIVEN ANY FINDINGS ON CHALLENGED LEGAL ISSUE OF NOTICE. WE FOUND THE ASSESSEE HAS RAISED GROUNDS OF APPEAL CHALLENGING THE ISSUE OF NOTICE UNDER SECTION 148 OF THE ACT WHERE THE NOTICE WAS ISSU ED WITHOUT RECORDING THE VALID REASONS. WHEREAS THE CIT(APPEALS) HAS CONSIDERED THESE FACTS BUT THERE ARE NO FINDINGS BY THE CIT (APPEALS) AND ALSO ASSESSING OFFICER HAS NOT PROVIDED REASONS FOR REASSESSMENT TO THE ASSESSEE. WHEREAS THE CIT (APPEALS) CON TENDED THAT THE REASONS WERE PROVIDED SUBSEQUENTLY. BUT THERE IS NO FINDING BY THE CIT (APPEALS) ON THE REASSESSMENT NOTICE ISSUED BY T HE ASSESSING OFFICER WITHOUT RECORDING VALID REASON S. WE ARE OF THE OPINION THAT CIT (APPEALS) HAS NOT ADJUDICATED THE DISPUTED ISSUE OF VALIDITY OF NOTICE UNDER SECTION 148 OF THE ACT. ACCORDINGLY WE SET ASIDE THE ORDER OF CIT (APPEALS) AND REMIT THE DISPUTED ISSUE TO THE FILE OF CIT (APPEALS) FOR PROPER FINDING AND PAS A SPEAKING ORDER AND ASSESSEE SHOULD BE PROVIDED A DEQUATE 5 ITA NO. 992/BANG/2017 OPPORTUNITY OF HEARING AND SHALL CO - OPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF APPEAL AND ALLOW THE GROUNDS OF APPEAL OF ASSESSEE FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3RD JAN., 202 0 . SD/ - SD/ - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 03 . 0 1. 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE