Dhanitha Constructions Private Limited, Hyderabad V. ACIT, Central Circle-1, Hyderabad

ITA 995/Hyd/2013

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7372 (ITAT-HYDERABAD)
• Duration Of Justice: 8 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 01-06-2021
• Assessment Year: 2008-2009
• Appeal Filed On: 17-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ESTHER
• Assessee Lawyers: S RAMA RAO
• Section: 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 995 /HYD./201 3 A .Y : 20 08 - 09 M/S DHANITHA CONSTRUCTIONS PVT. LTD. VS. A CIT, HYDERABAD CENTRAL CIRCLE 1 HYDERABAD [PAN: AADCD5610R] ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI S. RAMA RAO, ADV. FOR REVENUE: S MT. N. ESTHER, DR DATE OF HEARING : 01 /06/2021 DATE OF PRONOUNCEMENT : 17 /0 8 /2021 O R D E R PER S.S. GODARA, J.M. TH IS ASSESSEES APPEAL FOR A.Y. 20 08 - 09 A RISE S AGAINST THE CIT(A) - 1, HYDERABADS ORDER DATED 31.0 3 .201 3 PASSED IN CASE NO. 0291 / CC - 1/HYD/CIT(A) - I/HYD/10 - 11 , INVOLVING PROCEEDINGS U/S 143 (3) R.W.S. 153C OF THE INCOME TAX ACT, 1961 [ IN SHORT THE ACT ]. HEARD BOTH THE PARTIES. CA SE FILE PERUSED. ITA NO. 995/HYD/2013 AY 2008 - 09 M/S DHANITHA CONSTRUCTIONS PVT. LTD., HYD. 2 THE ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL. 2. THE ORDER OF THE LD.CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW 3 . THE LD.CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AO IN TREATING AN AMOUNT O F RS.2,44,55,000/ - RECEIVED FROM SRI SUNIL KUMAR AHUJA AS INCOME FROM BUSINESS. THE LD.CIT(A) OUGHT TO HAVE SEEN THAT THE SAID AMOUNT DOES NOT REPRESENT THE INCOME FROM BUSINESS AND SHOULD NOT HAVE BEEN TREATED AS PART OF INCOME. 4. THE LD.CIT(A) ERRED IN MAKING ADDITION OF RS. 2,05,50,000/ - WITHOUT CONSIDERING THE FACT THAT THE APPELLANT DID NEITHER RECEIVE THE SAID AMOUNT NOR SUCH AMOUNT REPRESENTS THE INCOME FROM BUSINESS. 3. IT EMERGES AT THE OUTSET THAT THE INSTANT LIS HAS ARISEN ON ACCOUNT OF THE DEPARTMENTS SEARCH ACTION DATED 17.09.2008 CONDUCTED AT THE RESIDENTIAL PREMISES OF ASSESSEES MANAGING DIRECTOR SRI OSS PRASAD IE SRI SIVA SANKAR PRASAD OBISETTY GIVING RISE TO ALLEGED SEIZURE OF INCRIMINATION MATERIAL PINPOINTING THE UNDISCLOS ED INCOME OF RS . 4,50,000/ - PERTAINING TO REAL ESTATE DEVELOPMENT TRANSACTIONS. 4. WE NEXT FIND THAT THIS TRIBUNALS COORDINATE BENCH ORDER DATED 26.9.2017 HAD CLUBBED THE INSTANT APPEAL WITH SHRI OSS PRASADS CASES ITA 951 TO 955/HYD/2015 RAISING IDENT ICAL/INTERCONNECTED ISSUES. 4.1. LEARNED COUNSEL HAS FILED THIS TRIBUNAL COORDINATE BENCH S ORDER DATED 06.10.2020 BEFORE US THAT ALL THE SAID APPEALS STAND RESTORED BACK TO THE FILE OF CIT(A) FOR HIS AFRESH ADJUDICATION . FACED WITH THIS SITUATIO N, WE OBSERVE THAT INSTANT LIS MUST ALSO FOLLOW SUIT BEING AN INTERCONNECTED CASE. IT IS MADE CLEAR THAT THE ASSESSEE OR ITS AR SHALL APPEAR BEFORE THE CIT(A) ON OR BEFORE 3 0 TH NOVEMER , 2021 WITH ALL THE RELEVANT DETAILS; AT ITS OWN RISK AND ITA NO. 995/HYD/2013 AY 2008 - 09 M/S DHANITHA CONSTRUCTIONS PVT. LTD., HYD. 3 RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING IN LIGHT OF THE FINAL OUTCOME IN SHRI PRASADS APPEALS (SUPRA). ORDERED ACCORDINGLY. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 17 TH AUGUST, 2021 . SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 17 TH AUGUST, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. M/S DHANITHA CONSTRUCTIONS PVT. LTD., C/O SRI S. RAMA RAO, ADVOCATE, FLAT NO.. 102, SHRIYAS ELEGANCE, H.NO. 3 - 6 - 643, STREE NO.9, HIMAYATNA GAR, HYDERABAD 500 029, TELANGANA 2. A CIT, CENTRAL CIRCLE 1, HYDERABAD 3. CIT(A) - 1, HYDERABAD 4. PR . CIT - 1 , HYDERABAD 5 . DR, ITAT, HYDERABAD. 6 . GUARD FILE.