Income Tax Officer, Ward-1, , Gudivada V. Koka Srinivasa Rao, Kalidindi

MA 5/VIZ/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3020 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 6 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-08-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 02-06-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 26-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263; 69A

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणमपीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./M.A.No.05/Viz/2020 & 11/VIZ/2020 (Arising out of I.T.A.No.353 & 354/Viz/2018) (ननधधारणवर्ा/ Assessment Year : 2016-17) Income Tax Officer Ward-1 Gudivada Vs. Sri Koka Srinivasa Rao D.No.2-35, Main Road Kodang (Post), Kaldindi (Mandal) Krishna Dist. [PAN : BJIPK1716P] Taragala Lakshmana D.No.1-20-1, Kodangi (Post) Kalindi Mandal Krishna Dist [PAN :ASEPT6112Q] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से/ Respondent by : Shri S.P.G.Mudaliar, DR सुनवधई की तधरीख/ Date of Hearing : 03.06.2022 घोर्णध की तधरीख/Date of Pronouncement : 30.08.2022 O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : These Miscellaneous Applications(M.As.) are filed by the revenue against the order of the Tribunal in ITA No.353 & 354/Viz/2018 dated 07.08.2019 for the Assessment Year (A.Y.) 2016-17. 2 MA No.05& 11/Viz/2020, A.Y.2016-17 Sri Koka Srinivasa Rao & Sri Taragala Lakshmana 2. The Ld.DR submitted that the AO has not considered the provisions of section 69A r.w.s. 115BBE while framing the assessment, hence, the assessment order was treated as erroneous and prejudicial to the interest of the revenue by the Ld.Pr.CIT. The Ld.DR further submitted that the Hon’ble ITAT has not adjudicated the following two issues, as issued in the show cause notice to the assessee by the Pr.CIT u/s 263 of the Act. The Ld.DR pleaded that the orders of the Hon’ble ITAT may be recalled and fresh revision orders be passed in accordance with law. (B) The AO treated the amount seized as unexplained money, but has not invoked the provisions of Sec.69A while making the additions. Thereby even the provisions of section 115BBE referring to special tax rates were not applied. (C) While filing the return of income, the assessee offered income u/s 44AE for full 12 months. But the sources for acquisition of vehicles (which were acquired in the earlier year) were not verified by the AO, though as per provisions of section 142(1)(iii) proviso (b) AO had the powers to verify the books of account of earlier three A.Ys. 3. Per contra, the Ld.AR argued that the Hon’ble ITAT has considered the order passed by the Ld.Pr.CIT u/s 263 as invalid and hence adjudication of the matters specified in the show cause notice does not arise. 4. We have heard both the parties and perused the order of the Hon’ble ITAT in ITA No.353&354/Viz/2018 dated 07.08.2019, wherein, in para No.6, it is clearly stated that the AO has made detailed enquiries and called 3 MA No.05& 11/Viz/2020, A.Y.2016-17 Sri Koka Srinivasa Rao & Sri Taragala Lakshmana the assessee to explain the source and after considering the explanation, made addition of Rs.7 lakhs and Rs.11 lakhs in the hands of the both the assessees respectively. Accordingly, Hon’ble ITAT considered that the order of the Ld.Pr.CIT is neither erroneous nor prejudicial to the interest of the revenue as per the provisions of section 263 of the Act. The twin conditions necessary for invoking the provisions u/s 263 of the Act has not been satisfied in the instant case and therefore, in our opinion, there is no error in the order passed by the Hon’ble ITAT and hence no interference is required. 5. In the result, Miscellaneous Applications filed by the revenue are dismissed. Order Pronounced in open Court on 30 th August,2022. Sd/- Sd/- (ए सबालाकृ ष्णन) (द ु व्वूरुआर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखासदस्य/ACCOUNTANT MEMBERन्याधयकसदस्य/JUDICIAL MEMBER Dated : 30.08.2022 L.Rama, SPS 4 MA No.05& 11/Viz/2020, A.Y.2016-17 Sri Koka Srinivasa Rao & Sri Taragala Lakshmana आदेशकीप्रतितितिअग्रेतिि/Copy of the order forwarded to:- 1. रधजस्व/The Revenue –Income Tax Officer, Ward-1, Gudivada 2. ननधधाऩरती/ The Assessee–(a) Sri Koka Srinivasa Rao, D.No.2-35, Main Road, Kodangi (Post), Kaldindi (Mandal), Krishna Dist. (b) Taragala Lakshmana, D.No.1-20-1, Kodangi (Post), Kalindi Mandal, Krishna Dist 3. प्रधानआयकरआयुक्त/ The Principal Commissioner of Income Tax, Vijayawada 4.नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम/ DR,ITAT,Visakhapatnam 5.गधर्ाफ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam