TGV PROJECTS AND INVESTMENTS PRIVATE LIMITED,HYDERABAD V. ITO, WARD-2(3), HYDERABAD

MA 10/HYD/2025

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TGV Projects and Investments Private Limited filed a miscellaneous application under section 254(2) of the Income Tax Act, 1961, seeking the recall of an order dated 20.08.2024 concerning the assessment year 2017-2018. The application argued that the Tribunal's previous orders were not being implemented by the Assessing Officer and that certain grounds raised were not addressed. The Tribunal, however, found that the application did not present any apparent mistake in the original order but rather sought a review of the decision, which is beyond the scope of section 254(2). The Tribunal also noted the lack of a legal basis for imposing a time limit on the Assessing Officer for passing consequential orders.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471485 (ITAT-HYDERABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2017-2018
• Other Referred Cases: ACIT-C4(2)(1)-V.-Merchant Agri Global Pvt. Ltd, ITA No.1493-Mumbai-2023(44AB), Principal Commissioner Of Income Tax-7-vs. R. G. Buildwell Engineers Ltd., on 1st October, 2018, SC
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SRINATH SADANALA
• Assessee Lawyers: K K GUPTA
• Keywords: Set aside; Onus to prove
• Section: 44AB

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH : HYDERABAD BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER M.A.No.10/Hyd./2025 Arising out of ITA.No.491/Hyd/2024 - Assessment Year 2017-2018 TGV Projects and Investments Private Limited, Hyderabad PAN AAACT8340H vs. The Income Tax Officer, Ward-2(3), Hyderabad. (Applicant) (Respondent) For Assessee : CA K K Gupta For Revenue : Shri Srinath Sadanala, Sr. AR Date of Hearing : 07.03.2025 Date of Pronouncement : 10.03.2025 ORDER PER MANJUNATHA G, A.M. : The assessee has filed the present miscellaneous application u/sec.254(2) of the Income Tax Act, 1961 [in short “the Act”], seeking for recall of the order of the Tribunal dated 20.08.2024 passed in ITA.No.491/Hyd./ 2024, for the assessment year 2017-2018. 2 M.A.No.10/Hyd./2025 2. During the course of hearing, the Learned Counsel for the Assessee, has narrated the facts of the case and mistakes stated to be apparent from the order of the Tribunal dated 20.08.2024 and relevant contents of the miscellaneous application read as under : “1) Appeal No. ITA.No.491/Hyd/2024, Order dt. 20.08.2024, relating to assessment year: 2017-18, and 2) Appeal No. ITA 1673/HYD/2014, Order Dt. 25.03.2015, relating to Asst Year: 2007-08. The instructions given by the honourable ITAT, Hyderabad in the above said orders were not implemented even after elapse of substantial amount of time. In the case of Appeal No. ITA 491/Hyd/2024, Order dt. 20-08-2024, relating to assessmnet year: 2017-18, the instructions were given for verification of the veracity of the transactions by the Assessing Officer has not taken place till date, in spite of elapse of 5 months. Similarly, in the case of Appeal No. ITA 1673 /HYD/2014, Order Dt. 25-03-2015, relating to Asst Year: 2007-08, even after elapse of 12 years no order was passed. The appellant requests you to pass directions stipulating the time limit to give effect to the honourable ITAT Orders. Further, the honourable ITAT order is silent on some of the grounds raised by the appellant 3 M.A.No.10/Hyd./2025 In the case of Companies, where the Tax Audit and Statutory Audit were taken place, the expenses cannot be disallowed, when the statutory auditor certifies that the expenses incurred are correct. Legal decision relied upon are enclosed herewith. In the Appeal No. ITA 491/Hyd/2024, Order dt. 20-08-2024, relating to assessment year: 2017-18, the following ground was not addressed, hence this review petition is being filed. Ground No.2: The accounts of the appellant were audited under the Companies Act, 2013 and also as per the provisions of section 44AB of the Income Tax Act, 1961. Now it is a settled law that when the Books of Accounts of the appellant were audited by an independent auditor, verification of bills and vouchers is not correct and justified. Case Laws relied: 1) ACIT-C4(2)(1)-V.-Merchant Agri Global Pvt. Ltd, ITA No.1493-Mumbai-2023(44AB). 2) Principal Commissioner Of Income Tax-7-vs. R. G. Buildwell Engineers Ltd., on 1ª October, 2018, SC. Honourable Supreme Court of India in the case of Principal Commissioner of Income Tax-Vs.-R.G. Buildwell Engineers Ltd. (2018) 99 taxmann.com 284 (SC) wherein it is held as under: \"Where High Court upheld order of Tribunal setting aside adhoc disallowance of expenses claimed on ground that assessee's books of account were not rejected, SLP filed against said order was to be dismissed. The Apex Court has held that \"Section 4 M.A.No.10/Hyd./2025 37(1) of the Income-tax Act, 1961 Business expenditure - Allowability of (Onus to prove) -In course of assessment, assessee claimed deduction of expenses towards bricks, machinery repair, cartage, labour expenses etc. Assessing Officer disallowed to per cent of said expenses on ground that insufficient evidence was adduced Tribunal set aside said adhoc disallowance on two grounds, firstly, assessee's books of account were not rejected and secondly, such expenses were allowed consistently in post in scrutiny assessments High Court upheld order passed by Tribunal-Whether SLP filed against view taken by High Court was to be dismissed-Held, yes [Para 2] [In favour of assessee]\" 2) Appeal relating to Assessment year: 2007-08: The order dated 25-03-2015, directing the Assessing Officer to verify and compare the facts of the appellant company to that of 'Gowri Gopal Hospitals Pvt Ltd.', so far, no order was passed by the assessing officer, in spite of elapse of 12 years of time. The matter of reopening was held incorrect in the case of 'Gowri Gopal Hospitals Pvt Ltd., the tribunal order directs the Assessing Officer to verify the facts. If the facts are similar the appeal is to be allowed In the light of lapse of time the appellant requests you to consider the matter and pass the necessary orders. For TGV Projects and Investments Pvt Ltd. Sd/-V. Sreenivasulu-Director Appellant.” 5 M.A.No.10/Hyd./2025 2. Learned Counsel for the Assessee, referring to petition filed by the assessee submitted that there is a mistake in the order of the Tribunal inasmuch as the Tribunal has not considered the arguments of the Counsel for the Assessee on adhoc estimation of certain expenses even though the assessee has referred certain decisions of Coordinate Bench Order of the Tribunal and argued that once books of accounts of the assessee are audited by an Accountant and there is no adverse comments from the Auditor, then, no question of adhoc disallowance at expenditure. However, the Tribunal has adjudicated the issue raised by the assessee and directed the Assessing Officer to verify the claim of the assessee and allow the claim as per law, but, the fact remains that when there is no time limit within which the Assessing Officer shall pass consequential order, the Assessing Officer is not giving effect to the order of the ITAT which is evident from the order passed by the Tribunal dated 25.03.2015 in ITA.No.1673/Hyd./2024 for the assessment year 2007-2008 where even after lapse of 09 years no order was passed by 6 M.A.No.10/Hyd./2025 the Assessing Officer. Therefore, he pleaded that a direction may be given to the Assessing Officer to pass consequential order within a stipulated period. 3. The Learned DR, on the other hand, supporting the order of the Tribunal submitted that there is no mistake apparent in the order of the Tribunal dated 20.08.2024. The assessee through it’s miscellaneous application moved the Tribunal u/sec.254(2) to recall the order of the Tribunal dated 20.08.2024 and as could be seen from the contents of the miscellaneous application, the assessee is seeking to review the order of the Tribunal dated 20.08.2024 under the garb of rectification and that the Tribunal has no power to review it’s own order under the given facts of the case. He, accordingly, submitted that the miscellaneous application filed by the assessee is not maintainable and needs to be dismissed. 4. We have heard both the parties and considered the relevant contents of miscellaneous application filed by the assessee. We find that the application filed by the 7 M.A.No.10/Hyd./2025 assessee u/sec.254(2) of the Act is a frivolous one which is evident from the contents of pleadings taken by the assessee in the miscellaneous application where the assessee has clubbed the orders passed by the Tribunal for the assessment year 2007-2008 dated 25.03.2015 passed in ITA.No.1673/Hyd./2014 and order dated 20.08.2024 passed in ITA.No.491/Hyd./2024, for the assessment year 2017-2018 and made a request which is not in the scope of Tribunal in giving time limit for passing consequential order to the Assessing Officer. Therefore, on this ground alone, the miscellaneous application filed by the assessee needs to be dismissed. However, on going through the pleadings of the assessee in light of the Tribunal order dated 20.08.2024 passed in ITA.No.491/Hyd./2024, we find that the assessee has failed to make-out a case of any error or apparent mistake on record from the order of the Tribunal and there is a canvass through the present miscellaneous application to review the order of the Tribunal dated 20.08.2024 passed in ITA.No.491/Hyd./2024. In the given facts of the case and arguments advanced by both the Counsels, in our 8 M.A.No.10/Hyd./2025 considered view, there is no merit in the miscellaneous application filed by the assessee and thus, the same is dismissed as not maintainable. 5. In the result, the miscellaneous application of the assessee is dismissed. Order pronounced in the open Court on 10.03.2025. Sd/- Sd/- [K. NARASIMHA CHARY] [MANJUNATHA G] JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 10th March, 2025 VBP Copy to 1. TGV Projects and Investments Private Limited, 6-2-1012, TGV Mansion, 6th Floor, Khairatabad, Hyderabad, Telangana. PIN – 500 004. 2. The Income Tax Officer, Ward-2(3), Signature Towers, Kondapur, Kothaguda, Opp. Botanical Gardens, Hyderabad – 500 084. Telangana. 3. The Pr. CIT, Hyderabad. 4. The DR ITAT “A” Bench, Hyderabad 5. Guard File //By Order// //True Copy// Sr. Private Secretary : ITAT : Hyderabad Benches, Hyderabad. "