ITO, Ward-1(2), Tirupathi, Tirupathi V. Gangalapudi Sreenivasulu Reddy, , Hyderabad

MA 74/Hyd/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7301 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-10-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 25-06-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P V SUBBA RAJU
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Revision of order; Audit objection; Tax effect
• Section: 40A(3); 143(3); 263

Judgement Text

MA NO 74 OF 2018 GANGALAPUDI SREENIVASULU REDDY HYDERABAD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A.NO.74/HYD/2018 (ARISING OUT OF ITA NO.991/HYD/2017) (ASSESSMENT YEAR: 2009-10) INCOME TAX OFFICER WARD 1(2) TIRUPATHI VS SRI GANGALAPUDI SREENIVASULU REDDY, HYDERABAD PAN: AFYPG4605E (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI P.V. SUBBARAJU, DR FOR ASSESSEE: SHRI K.A. SAI PRASAD O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS M.A IS FILED BY THE REVENUE SEEKING RECTIFICAT ION OF ALLEGED MISTAKE IN THE ORDER OF THE TRIBUNAL. IN TH E APPLICATION, IT IS STATED AS UNDER: IN THE ABOVE CASE, THE HON'BLE ITAT HAS ALLOWED TH E APPEAL OF THE ASSESSEE AS PER PARA NO.3 OF THE HON' BLE ITAT'S ORDER DATED 02.02.2018. BUT AS EXAMINED FROM THE RECORDS OF SRI GANGALAPUDI SREENIVASULU REDDY, THERE IS A MISTAKE APPARENT FOR M THE RECORD IN THE ORDER OF THE HON'BLE ITAT IN ITA NO.991/HYD/2017, DATED:02.02.2018 FOR THE A.Y.2009- 10 FOR THE FOLLOWING FACTS. THE ASSESSEE IS AN INDIVIDUAL FILED HIS RETURN OF I NCOME FOR THE A.Y.2009-10 ON 31.03.2010 BEFORE THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, TIRUPAT I ADMITTING TOTAL INCOME OF RS.2,170/- COMPRISING OF INCOME DATE OF HEARING: 07.09.2018 DATE OF PRONOUNCEMENT: 0 1.10 .2018 MA NO 74 OF 2018 GANGALAPUDI SREENIVASULU REDDY HYDERABAD. PAGE 2 OF 4 FROM SHORT TERM CAPITAL GAINS AND INCOME FROM OTHER SOURCES BESIDES AGRICULTURAL INCOME OF RS.2,50,000/ - .THE CASE WAS SELECTED FOR SCRUTINY AND THE AO COMPLETED THE ASSESSMENT U/S 143(3) OF THE I. T. ACT ON 30.12.201 1 DETERMINING THE INCOME AT RS.11,02,160/-. SUBSEQUENTLY, THE RAP HAS RAISED AN OBJECTION IN NO.PDA(C)-HYD/DTAP 9/2012-13/HM NO.5, DATED 31.05.2012 AND THE CONTENTS OF THE ABOVE OBJECTION IS AS UNDER: 'ON VERIFICATION ON THE COST OF PURCHASE, IT IS SEE N FROM THE PURCHASE DEEDS THE ASSESSEE HAS MADE ALL PURCHASES IN CASH. IN RESPECT OF TWO PROPERTY, THE SELLER WERE N OT AGRICULTURISTS HENCE RULE 6DD OF SECTION 40A(3) IS NOT APPLICABLE. IN RESPECT OF OTHER SELLERS, THE INFORM ATION IS NOT AVAILABLE ON RECORD REGARDING THEIR BANK ACCOUN TS. THIS ASPECT NEEDS TO BE VERIFIED IN RESPECT OF OTHE R SELLERS. HOWEVER IN RESPECT OF ABOVE TWO SELLERS PROVISIONS OF SECTION 40A(3) NEEDS TO BE INVOKED'. BASING ON THE ABOVE OBJECTION AND AS PER THE DIRECT IONS OF THE COMMISSIONER OF INCOME TAX (CENTRAL), HYDERABAD , THE CASE WAS REOPENED U/S 263 OF THE I.T.ACT. LATER, TH E CASE WAS TRANSFERRED TO ITO, WARD-1(2), TIRUPATI AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W.S .263 OF THE IT ACT ON 31.03.2014 DETERMINING THE TOTAL I NCOME AT RS.27,04,040/-. IN THE SAID ASSESSMENT, THE ASSESSING OFFICER MADE AN ADDITION OF RS.L6,74,900/- TOWARDS DISALLOWANCE OF CASH PAYMENTS MADE IN EXCESS OF RS.20,000/- FOR PURCHASE OF LANDS UNDER SECTION 40A(3) OF THE IT ACT. AGGRIEVED WITH THE ASSESSMENT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE COMMISSIONER OF INCOME TAX (APPEALS), TIRUPATI. SUBSEQUENTLY, THE CIT(A) ALLOWED THE ASSESSEE APPEA L. AGGRIEVED WITH CIT(A) ORDER, REVENUE FILED AN APPEA L BEFORE HON'BLE ITAT, HYDERABAD. THE HON'BLE ITAT DISMISSED THE APPEAL OF THE REVENU E BY DELIVERED JUDGEMENT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.20 LAKHS VIDE ORDER IN ITA NO.991/HYD/2017, DATED: 02.02.2018. IN THIS CONNECTION, IT IS SUBMITTED THAT THE ABOVE CASES FALLS UNDER THE EXCEPTIONS MENTIONED AT PARA 8(C) O F THE BOARD'S CIRCULAR NO.21/2015, DATED 10.12.2015 WHERE THE 'REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT'. MA NO 74 OF 2018 GANGALAPUDI SREENIVASULU REDDY HYDERABAD. PAGE 3 OF 4 IN VIEW OF THE ABOVE, IT IS PRAYED BEFORE THE HON'B LE IT AT THAT THE ABOVE ISSUES MAY KINDLY BE RECONSIDERED ON THE ORDER IN ITA NO.991/HYD/2017, DATED: 02.02.2018. 2. IT IS SUBMITTED THAT THE REVENUES APPEAL WAS DISMISSED ON ACCOUNT OF LOW TAX EFFECT BUT SINCE IT HAS FALLEN UNDER THE EXCEPTION OF THE ASSESSMENTS BEING COMPLETED ON ACCOUNT OF AUDIT OBJECTION, THE ORDER OF THE TRIBUNAL SHOULD B E RECALLED AND HEARD AFRESH ON MERITS OF THE CASE. THE LEARNED COU NSEL FOR THE ASSESSEE WAS ALSO HEARD. 3. HAVING REGARD TO THE FACTS THAT THE PRESENT CASE FALLS UNDER THE EXCEPTIONS TO THE CBDT CIRCULAR AT PARA 8 (C) FIXING THE TAX LIMIT OF RS.20.00 LAKHS, WE DEEM IT FIT AND PRO PER TO RECALL THE ORDER OF THE TRIBUNAL AND RE-FIX THE APPEAL FOR HEA RING ON 12.02.2019. AS THE DATE OF HEARING OF THE APPEAL HA S BEEN ANNOUNCED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE PARTIES, NO FRESH NOTICE NEED BE GIVEN. 4. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST OCTOBER, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED SEPTEMBER, 2018. VINODAN/SPS MA NO 74 OF 2018 GANGALAPUDI SREENIVASULU REDDY HYDERABAD. PAGE 4 OF 4 COPY TO: 1 ITO WARD 1(2) TIRUPATHI 2 SHRI GANGALAPUDI SREENIVASULU REDDY, 402 MAHALAKS HMI MANSION, BK GUDA, SR NAGAR, HYDERABAD 3 CIT (A)-TIRUPATHI 4 PR. CIT - TIRUPATHI 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER