Vishnu Chits P. Ltd., Secunderabad V. Dy. CIT, Central Circle-6, Hyderabad

ITSSA 7/HYD/2012

• Counselvise Citation: [2013] 121 COUNSELVISE.COM (IT) 8866 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 02-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Assessee Lawyers: V RAGHAVENDRA RAO
• Keywords: Search and seizure
• Section: 144; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER IT(SS)A NO. 07/HYD/12 BLOCK PERIOD: 1997-98 TO 2002-03 & UPTO 05/09/2002 VISHNU CHITS PVT. LTD., HYDERABAD. (PAN AAACV8229R) V/S. DY. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE- 6, HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V. RAGHAVENDRA RAO RESPONDENT BY : SMT. AMISHA S. GUPT DATE OF HEARING 10/01/2013 DATE OF PRONOUNCEMENT 15/02/2013 O R D E R PER SAKTIJIT DEY, JUDICIAL MEMBER: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-IV, HYDERABAD DATED 31/01/2012, FOR THE BLOCK PERIOD FROM 1997-98 TO 2002-03 & UPTO 05/09/2002. 2. ON PERUSAL OF RECORD, WE FIND THAT THERE WAS A D ELAY OF 56 DAYS IN FILING THE APPEAL BEFORE US. ON CONSIDER ING THE EXPLANATION OF THE ASSESSEE WITH REGARD TO THE CAUS E OF DELAY, WE CONDONE THE SAID DELAY AND ADMIT THE APP EAL FOR ADJUDICATION. 3. BRIEFLY THE FACTS ARE, THE ASSESSEE A COMPANY IS ENGAGED IN CHIT FUND BUSINESS. A SEARCH AND SEIZURE OPERATION WAS CONDUCTED IN THE BUSINESS PREMISES OF THE IT(SS)A NO.07/H/2012 VISHNU CHITS PVT. LTD. 2 ASSESSEE ON 05/09/2002. AS THE ASSESSEE NEITHER FIL ED ITS RETURN IN RESPONSE TO NOTICE ISSUED U/S 158BC OF TH E ACT, NOR APPEARED IN THE ASSESSMENT PROCEEDINGS, ASSESSMENT WAS COMPLETED EX-PARTE U/S 144 DETERMINING THE UNDISCLO SED INCOME AT RS. 68,08,900/- FOR THE BLOCK PERIOD. TH E ASSESSMENT SO COMPLETED WAS CHALLENGED BY THE ASSES SEE BY FILING AN APPEAL BEFORE THE CIT(A). 4. AFTER DISMISSAL OF THE APPEAL BY THE CIT(A), THE ASSESSEE CARRIED THE MATTER BEFORE THE INCOME-TAX A PPELLATE TRIBUNAL, HYDERABAD BENCH. THE INCOME-TAX APPELLATE TRIBUNAL, HYDERABAD VIDE ITS ORDER DATED 202/04/200 8 IN IT(SS)A. NO. 30/HYD/07 REMITTED THE MATTER BACK TO THE ASSESSING OFFICER FOR COMPLETING THE ASSESSMENT AFR ESH. THE ASSESSMENT PROCEEDING AS WAS INITIATED IN PURSUANCE TO THE DIRECTION OF THE INCOME-TAX APPELLATE TRIBUNAL, AGA IN, WAS COMPLETED EX-PARTE AS THE ASSESSEE FAILED TO APPEAR BEFORE THE ASSESSING OFFICER. THE ASSESSEE CHALLENGED THE ASSESSEE ORDER PASSED BY FILING AN APPEAL BEFORE THE CIT(A). 5. IN COURSE OF APPEAL PROCEEDING BEFORE THE CIT(A) , AS THE ASSESSEE ABSENTED ITSELF FROM APPEARING, THE CI T(A) PASSED AN EX-PARTE ORDER ON 31/01/2012 DISMISSING T HE APPEAL OF THE ASSESSEE BY OBSERVING THAT AS THE ASS ESSEE HAS NOT FURNISHED ANY EVIDENCE TO CONTEST THE FINDINGS OF THE ASSESSING OFFICER THERE IS NO REASON TO INTERFERE W ITH THE CONCLUSIONS ARRIVED AT BY THE ASSESSING OFFICER. BE ING AGGRIEVED OF THE AFORESAID ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US RAISING AS MANY AS 11 GROUND S. IT(SS)A NO.07/H/2012 VISHNU CHITS PVT. LTD. 3 6. THE LEARNED COUNSEL FOR THE ASSESSEE, HOWEVER, A T THE OUTSET, SUBMITTED THAT DUE TO GENUINE DIFFICULTIES THE ASSESSEE COULD NOT REPRESENT ITS CASE BEFORE THE FI RST APPELLATE AUTHORITY, HENCE, THE LEARNED COUNSEL REQ UESTED FOR GRANTING ONE MORE OPPORTUNITY TO REPRESENT ITS CASE BEFORE THE CIT(A). 7. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, SUBMITTED THAT THE APPEAL WAS DECIDED EX-PART E ONLY DUE TO THE LAPSES OF THE ASSESSEE ITSELF. THE LEARN ED DEPARTMENTAL REPRESENTATIVE, HOWEVER, DID NOT HAVE ANY SERIOUS OBJECTION TO THE LEARNED COUNSELS REQUEST FOR GRANT OF ONE MORE OPPORTUNITY TO REPRESENT ASSESSEES CASE B EFORE THE CIT(A). 8. WE HAVE HEARD THE SUBMISSIONS OF BOTH THE PARTIE S AND PERUSED THE ORDERS OF LOWER AUTHORITIES AS WELL AS OTHER MATERIALS ON RECORD. IT IS EVIDENT FROM THE IMPUGNE D ORDER OF THE CIT(A) THAT THE APPEAL WAS DISPOSED OF EX-PARTE AS THE ASSESSEE DID NOT AVAIL THE VARIOUS OPPORTUNITIES AF FORDED BY THE CIT(A) BY GRANTING ADJOURNMENTS AS REQUESTED BY THE ASSESSEE. THOUGH THIS FACTUAL POSITION DISCUSSED BY THE CIT(A) REMAINS UNCONTROVERTED, HOWEVER, THE LEARNED COUNSEL FOR THE ASSESSEE HAS PRAYED FOR ONE MORE OPPORTUNIT Y MAY BE GIVEN FOR PUTTING FORTH THE CASE OF THE ASSESSEE I N RELATION TO VARIOUS ISSUES INVOLVED IN THE APPEAL BEFORE THE CI T(A) FOR PROPER ADJUDICATION OF THE MATTER. CONSIDERING THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE AND THE PRAYER OF THE LEARNED COUNSEL FOR THE ASSESSEE FOR ONE MORE OPPOR TUNITY TO PUT-FORTH THE CASE ASSESSEE BEFORE THE CIT(A), WE F IND IT JUST AND PROPER TO SET ASIDE THE IMPUGNED ORDER OF CIT(A ) AND IT(SS)A NO.07/H/2012 VISHNU CHITS PVT. LTD. 4 RESTORE THE MATTER TO HIS FILE FOR DISPOSAL OF THE APPEAL OF THE ASSESSEE BEFORE HIM. WE DO SO ACCORDINGLY AND DIREC T THE CIT(A) TO DISPOSE OF THE APPEAL BEFORE HIM AFRESH O N ALL THE ISSUES IN ACCORDANCE WITH LAW AND AFTER AFFORDING R EASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSE E IS ALSO DIRECTED TO COOPERATE AND COMPLY WITH THE NOTICES A ND DIRECTIONS OF THE CIT(A) THAT MAY BE GIVEN IN THE C OURSE OF THE APPEAL PROCEEDINGS FOR ENABLING EARLY DISPOSAL OF THE APPEAL BY THE CIT(A). IF THE ASSESSEE STILL DOES NO T COOPERATE, THEN, THE CIT(A) IS FREE TO DECIDE THE A PPEAL EX- PARTE DRAWING HIS OWN INFERENCE IN ACCORDANCE WITH LAW ON THE BASIS OF MATERIALS AVAILABLE ON RECORD BEFORE H IM. 9. SINCE WE ARE REMITTING THE MATTER BACK TO THE CI T(A), WE ARE NOT INCLINED TO GO IN TO THE OTHER GROUNDS R AISED BY THE ASSESSEE ON THE MERITS OF THE ADDITIONS/DISALLO WANCES SUSTAINED BY THE CIT(A). 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 15/02/2013. SD/- SD/- (CHANDRA POOJARI) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DTD. 15 TH FEBRUARY, 2013. KV IT(SS)A NO.07/H/2012 VISHNU CHITS PVT. LTD. 5 COPY FORWARDED TO: 1. VISHNU CHITS P. LTD., 126, 2 ND FLOOR, JAYA MANSION, SD/- ROAD, SECUNDERABAD. 2. DCIT, CENTRAL CIRCLE 6, HYDERABAD 3. CIT(A)-I, HYDERABAD 4. CIT-III, HYDERABAD 4. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD.