The ITO, Guntur V. Sri Mavva Nagi reddy, Gunturu Distt.

MA 51/VIZ/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9641 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 26-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER MISC. APPLICATION NO. 51/VIZ/2018 (ARISING OUT OF ITA NO. 2 1 3 / VIZ /201 7 ) (ASST. YEAR : 2009 - 10 ) ITO, WARD - 1(3), GUNTUR. V S . MUVVA NAGI REDDY, PROP. BALAJI MEDICINAL & AROMATIC PRODUCTS, GOLLAMUDIVARI STREET, SATTENAPALLI POST & MANDAL, GUNTUR DISTRICT. PAN NO. AKOPM 1107 A (APP LICANT ) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM, FC A. DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 26 / 0 6 /201 9 . DATE OF PRONOUNCEMENT : 26 / 0 6 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER BY THIS MISC. APP L ICATION, REVENUE SEEKS RECALL OF THE ORDER PASSED BY THIS TRIBUNAL IN ITA NO. 213/VIZ/2017, DATED 18/07/2018 ON THE GROUND THAT THE OBJECTION RAISED BY THE REVENUE AUDIT PARTY (RAP) HAS BEEN ACCEPTED BY THE DEPARTMENT. 2. THE DEPARTMENT HAS RAISED THE FOLLOWING GROUNDS IN ITA NO. 213/VIZ/2017 : - 2 M A NO. 51 /VIZ/2018 ( MUVVA NAGI REDDY ) 1. THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 1, GUNTUR, IS ERRONEOUS BOTH IN LAW AND ON FACTS OF THE CASE. 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 1, GUNTUR ERRED IN ALLOWING ASSESSEE'S APPEAL IN RESPECT OF DISALLOWANCE MADE BY THE AG OF CASH PAYMENTS TO THE PARTIES U/S.40A(3) AGAINST THE FINDINGS OF THE AG IN THE ASSESSMENT ORDER. 3. THE LD.CIT (A) - 1, GUNTUR, ER RED IN ALLOWING HE ASSESSEE'S APPEAL IN RESPECT OF DISALLOWANCE U/S.40A(3) BY THE AG BASING ON THE SUBMISSIONS MADE DURING THE HEARING OF APPEAL WITHOUT MAKING THEM VERIFIED BY THE AG AFRESH OF SUCH EVIDENCES NECESSARY AS PER RULE 6DD FOR ALLOWING THE APPE AL. 4. ANY OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 3 . AT THE TIME OF APPEAL HEARING, BOTH THE PARTIES SUBMITTED THAT TAX EFFECT INVOLVED IN TH E APPEAL IS BELOW RS. 1 0.00 LAKHS . BY FOLLOWING THE CBDT CIRCULAR NO. 21/2015, DATED 10/12/2015 , THIS TRIBUNAL HAS DISMISSED THE APPEAL ON THE GROUND OF NO N - MAINTAINAB ILITY . 4 . NOW THE DEPARTMENT HAS FILED TH IS MA AND SUBMITTED THAT IN THIS CASE , THERE IS AN AUDIT OBJECTION , THE SAME IS ACCEPTED BY THE DEPARTMENT, THEREFORE, THIS IS AN EXCEPTION TO THE CBDT CIRCULAR NO. 21/2015, DATED 10/12/2015 . WE HAVE GONE THROUGH THE GROUNDS RAISED BY THE DEPARTMENT AS EXTRACTED HEREIN ABOVE AND FIND THAT THE DEPARTMENT HAS NOT RAISED AN Y GROUND IN RESPECT OF AUDIT OBJECTION HAS BEEN ACCEPTED BY THE DEPARTMENT. THAT APART, LD. DR NOT SUBMITTED ANYTHING IN RESPECT OF AUDIT OBJECTION ACCEPTED BY THE DEPARTMENT. SO FAR AS ACCEPTANCE OF AUDIT 3 M A NO. 51 /VIZ/2018 ( MUVVA NAGI REDDY ) OBJECTION IS CONCERNED, THIS FACT IS NEITHER AVAI LABLE FROM THE ASSESSMENT ORDER NOR FROM THE LD. CIT(A)S ORDER. EVEN BEFORE US, NO MATERIAL IS PLACED ABOUT THE OBJECTION RAISED BY THE AUDIT PARTY. WE FIND THAT WHEN THIS APPEAL WAS FILED, NO SUCH GROUND IS RAISED. THIS ISSUE WAS NOT AT ALL ARGUED AT T HE TIME OF APPEAL HEARING. WE FIND NO MISTAKE APPARENT ON RECORD TO RECALL THE ORDER PASSED BY THIS TRIBUNAL IN ITA NO. 213/VIZ/2017, DATED 18/07/2018. TH EREFORE , THIS MISC. APPLICATION FILED BY THE REVENUE IS DISMISSED. 5. IN THE RESULT, MISC. APPLICATION FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 26 TH DAY OF JU NE , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26 TH JU NE, 201 9 . VR/ - COPY TO: 1. THE ASSESSEE - MUVVA NAGI REDDY, PROP. BALAJI MEDICINAL & AROMATIC PRODUCTS, GOLLAMUDIVARI STREET, SATTENAPALLI POST & MANDAL, GUNTUR DISTRICT. 2. THE REVENUE ITO, WARD - 1(3), GUNTUR . 3. THE PR. CIT , GUNTUR. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.