THOTA VENKATESWARA RAO, KAKINADA V. INCOME TAX OFFICER, WARD-1, KAKINADA

MA 4/VIZ/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6518 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-05-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 14-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Section: 147; 143(3)

Judgement Text

आयकरअपीलीयअधिकरण, विशाखापटणमपीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्रीद ु व्ि ू रुआरएलरेड्डी, न्याययकसदस्यएिंश्रीएसबालाक ृ ष्णन, लेखासदस्यकेसमक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER M.A. No. 04/Viz/2024 (In आयकरअपीलसं./ I.T.A. No. 221/Viz/2023) (निर्धारणवर्ा/ Assessment Year : 2017-18) Thota Venkateswara Rao, D.No. 67-21-12/4, LB Nagar SS, Kakinada. PAN: ABIPT 6770 F Vs. Income Tax Officer, Ward-1, Kakinada. (अपीलधर्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधर्थीकीओरसे/ Assessee by : Sri GVN Hari, AR प्रत्यधर्थीकीओरसे/ Revenue by : Dr. Aparna Villuri, Sr. AR स ु िवधईकीतधरीख/ Date of Hearing : 03/05/2024 घोर्णधकीतधरीख/Date of Pronouncement : 13/06/2024 O R D E R PER S. BALAKRISHNAN, Accountant Member : This Miscellaneous Application is filed by the assessee seeking recall of the order passed by the Tribunal in ITA No. 221/Viz/2023 (AY 2017-18), dated 28/03/2024. 2 2. At the outset, the Ld. Authorized Representative [AR] submitted that the assessee has not pressed Ground No. 2 & 3 of the original appeal with respect to reopening of the assessment U/s. 148 of the Act and also the addition made by the Ld. AO for the AY 2017-18 by applying the provisions of section 197(b) of the Income Declaration Scheme [“IDS”]-2016. The Ld. AR argued that the only plea of the assessee is with respect to Ground No.4 & 5 of the original grounds of appeal wherein the provisions of section 115BBE were invoked and credit for the tax paid of Rs. 14,62,500/- under the IDS-2016 was not given to the assessee while taxing the income under the normal provisions. He therefore pleaded that as per the above, there is a mistake apparent on record in the order of the Tribunal and prayed that the same may be rectified by passing the orders as deemed fit. 3. The Learned Departmental Representative [“Ld. DR”] did not controvert to the arguments of the Ld. AR. 4. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities and also the order of the Tribunal dated 28/03/2024. With respect to argument of the Ld. AR that Grounds No. 2 & 3 of the original appeal, we find that the Tribunal has inadvertently 3 adjudicated the same when these grounds are not pressed by the Ld. AR. We therefore are of the considered view that these Grounds No. 2 & 3 of the original appeal shall be dismissed as not pressed. 5. With respect to Ground No.4, it is an admitted fact that the assessee has declared income under IDS, 2016 and has paid the first instalment of tax amounting to Rs.14,62,500/-. The assessee has admitted an amount of Rs.1,30,00,000/- under the IDS, 2016. It was explained by the Ld.AR that the assessee could not pay the balance amount of tax as declared under IDS, 2016 due to financial difficulties. Thereafter, in response to notice from ITO, Ward-2, the assessee declared the same while filing normal return of income for the A.Y.2016-17 and has paid the taxes, which was not disputed by the revenue. The only contention of the revenue is that as per the provisions of section 197(b) of IDS 2016, the income shall be chargeable to tax under the Act in the previous year in which declaration were made.The assessee also filed the return of income for the A.Y.2017-18 and the same AO has passed orders u/s 143(3) of the Act. Subsequently the Ld.AO realized that the assessee has violated the provisions of section 197(b) of IDS 2016 and thereby invoked section 147 of the Act for the AY 2017-18 by adding Rs 1,30,00,000/- once again in the hands of the assessee. Considering the 4 provisions of section 197(b) of IDS 2016, we find that the Ld. AO has rightly brought to tax the amount of Rs.1,30,00,000/- admitted under IDS-2016 during the AY 2017-18. However, it was also not disputed that the same income has been admitted by the assessee while filing the return of income for the AY 2016-17 and taxes thereon were accordingly paid by the assessee. From the discussions as aforesaid, we are of the considered view that the provisions of section 115BBE could not be applied to the instant case as the assessee has opted declaration of income in accordance with the provisions of IDS-2016. We therefore direct the Ld. AO to consider the income declared in the AY 2016-17 as income for the AY 2017-18, as the same income cannot be taxed twice in the hands of the assessee for two AYs. The credit shall also be given to the taxes paid amounting to Rs 63,14,062/- for the AY 2017-18, paid by the assessee during the admission of the income in the AY 2016-17. Accordingly, this ground is disposed of and allowed for statistical purposes. 6. In the result, Miscellaneous Application filed by the assessee is allowed and the appeal filed by the assessee is allowed for statistical purposes. 5 Pronounced in the open Court on 13 th June, 2024. Sd/- Sd/- (द ु व्ि ू रु आर. एल रेड्डी) (एस बालाक ृ ष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER लेखासदस्य/ACCOUNTANT MEMBER Dated : 13.06.2024 OKK - SPS आदेशकीप्रतिलिपिअग्रेपिि/Copy of the order forwarded to:- 1. निर्धाररती/ The Assessee–Thota Venkateswara Rao, D.No. 67-21- 12/4, LB Nagar SS, Kakinada. 2. रधजस्व/The Revenue –Income Tax Officer, Income Tax Office, 3 rd Floor, Deepthi Towers, Main Road, Kakinada. 3. The Principal Commissioner of Income Tax, 4. आयकरआय ु क्त (अपील)/ The Commissioner of Income Tax 5. ववभधगीयप्रनतनिधर्, आयकरअपीलीयअधर्करण, ववशधखधपटणम/ DR,ITAT, Visakhapatnam 6. गधर्ाफ़धईल / Guard file आदेशधि ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam