THE ITO, Bhimavaram V. Sri Chekuri Venkata Ranga Raju,

MA 1/VIZ/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4612 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 14-12-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 22-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVINDAKSHAN
• Keywords: Unexplained investment; Rectification of order; Search and seizure

Judgement Text

MP NO.1/VIZAG/2015 SHRI CHEKURI VENKATA RANGA RAJU, BHIMAVARAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER M.P.NO.1/VIZAG/2015 (ARISING OUT OF ITA NO.410/VIZAG/2012) ( / ASSESSMENT YEAR: 2004-05) ITO, WARD - 2, BHIMAVARAM VS. SHRI CHEKURI VENKATA RANGA RAJU, BHIMAVARAM [PAN: ACKPR 0677G ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI ARVINDAKSHAN, DR / RESPONDENT BY : SHRI G .V.N. HARI, AR / DATE OF HEARING : 24.06.2016 / DATE OF PRONOUNCEMENT : 22.07.2016 / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS MISCELLANEOUS PETITION FILED BY THE REVENUE, REQUESTING RECTIFICATION OF ORDER PASSED BY THIS TRIBUNAL, IN ITA NO.410/VIZAG/2012 DATED 21.7.2014 FOR THE ASSESSMENT YEAR 2004-05, IS ADJUDICATED AS UNDER. MP NO.1/VIZAG/2015 SHRI CHEKURI VENKATA RANGA RAJU, BHIMAVARAM 2 2. DURING THE COURSE OF HEARING, THE LD. D.R. SUBMI TTED THAT ON GOING THROUGH THE ORDER PASSED BY THE HONBLE BENCH, IT I S NOTICED THAT THE BENCH HAS CONDONED THE DELAY IN FILING THE APPEAL T HOUGH NO REASONS WERE MENTIONED IN THE ORDER. THE D.R. FURTHER SUBMI TTED THAT THE HONBLE BENCH HAS DELETED THE ADDITIONS MADE BY THE A.O. TOWARDS UNACCOUNTED INVESTMENT IN PURCHASE OF LAND OF RS.7, 30,000/- BY RELIED UPON THE DECISION OF ITAT, VISAKHAPATNAM BENCH IN T HE CASE OF SRI LALITHA CONSTRUCTIONS & OTHERS VS. ACIT IN ITA NOS. 162 TO 164/VIZAG/2013 DATED 13.12.2013. BUT, THE HONBLE H IGH COURT OF ANDHRA PRADESH, IN THE CASE OF GOPAL LAL BHADRUKA V S. DCIT REPORTED IN 346 ITR 106, HELD THAT FOR THE PURPOSE OF SECTION 1 53A/153C OF THE ACT, THE A.O. COULD TAKE INTO CONSIDERATION MATERIAL OTH ER THAN WHAT WAS AVAILABLE DURING THE SEARCH AND SEIZURE OPERATION F OR MAKING THE ASSESSMENT OF THE UNDISCLOSED INCOME OF THE ASSESSE E, HOWEVER, THE ITAT DID NOT FOLLOW THE SAID DECISION WHICH IS BIND ING IN NATURE. THE LD. D.R. FURTHER SUBMITTED THAT THE SAID MISTAKES CONST ITUTE MISTAKE WHICH IS CLEARLY AMENABLE FROM THE RECORDS NEEDS TO BE RECTI FIED U/S 254(2) OF THE ACT. THEREFORE, REQUESTED TO RECALL THE ORDER P ASSED BY THE TRIBUNAL. 3. ON THE OTHER HAND, THE LD. A.R. FOR THE ASSESSEE SUBMITTED THAT WHILE ADJUDICATING THE ISSUE, THE BENCH HAS CONSIDE RED THE CASE LAW MP NO.1/VIZAG/2015 SHRI CHEKURI VENKATA RANGA RAJU, BHIMAVARAM 3 REFERRED BY THE LD. D.R. IN THE CASE OF GOPAL LAL B HADRUKA VS. DCIT (SUPRA) AND AFTER CONSIDERING THE RATIO LAID DOWN B Y THE HONBLE A.P. HIGH COURT, THE BENCH COME TO THE CONCLUSION THAT T HE A.O. HAS NO JURISDICTION TO ASSESS OR RE-ASSESS THE INCOME WHIC H IS DISCLOSED IN THE REGULAR RETURN OF INCOME FILED FOR THE RESPECTIVE A SSESSMENT YEARS. THEREFORE, THERE IS NO MISTAKE IN THE ORDER OF THE TRIBUNAL, WHICH REQUIRES RECTIFICATION U/S 254(2) OF THE ACT. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. ON VERIFICATION OF THE ORDER PASSED BY THIS TRIBUNAL, IN ITA NO.410/VIZAG/2012 DATED 21.7.2014, WE FIND THAT THE BENCH, WHILE ADJUDICATING THE ISSUE RAISED BY THE REVENUE BY THI S MISCELLANEOUS PETITION, HAS CONSIDERED THE CASE LAW RELIED UPON B Y THE REVENUE OF ANDHRA PRADESH HIGH COURT, IN THE CASE OF GOPAL LAL BHADRUKA VS. DCIT (SUPRA). WE FURTHER NOTICED THAT AFTER CONSIDERING T HE AVERMENTS MADE BY BOTH THE PARTIES, THE BENCH HAS GIVEN A CATEGORI CAL FINDING ON THE ISSUE. THEREFORE, WE ARE OF THE OPINION THAT THERE IS NO MISTAKE APPARENT FROM THE RECORDS IN THE ORDER OF THE TRIBUNAL DATED 21.7.2015, WHICH REQUIRES RECTIFICATION U/S 254(2) OF THE ACT. ACCO RDINGLY, WE DISMISS THE MISCELLANEOUS PETITION FILED BY THE REVENUE. MP NO.1/VIZAG/2015 SHRI CHEKURI VENKATA RANGA RAJU, BHIMAVARAM 4 5. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE REVENUE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 ND JUL16. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER ! /VISAKHAPATNAM: % /DATED : 22.07.2016 VG/SPS )! *! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-2, BHIMAVARAM 2. / THE RESPONDENT SHRI CHEKURI VENKATA RANGA RAJU , 17-17-18A, F.NO.101, SRINILAYA APARTMENT, ASR NAGAR, BHIMAVARA M 3. + / THE CIT (CENTRAL), HYDERABAD 4. + ( ) / THE CIT (A)-I, HYDERABAD 5. ! . , . , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // 12 . (SR.PRIVATE SECRETARY) . , ! / ITAT, VISAKHAPATNAM