Dr S.Venkateswara Rao, Hyderabad v. ACIT, Hyderabad

ITA 1007/HYD/2008 | 2003-2004
Pronouncement Date: 09-04-2010 | Result: Partly Allowed

Appeal Details

RSA Number 100722514 RSA 2008
Assessee PAN AIRPS8726L
Bench Hyderabad
Appeal Number ITA 1007/HYD/2008
Duration Of Justice 1 year(s) 10 month(s) 11 day(s)
Appellant Dr S.Venkateswara Rao, Hyderabad
Respondent ACIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 09-04-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 09-04-2010
Date Of Final Hearing 25-03-2010
Next Hearing Date 25-03-2010
Assessment Year 2003-2004
Appeal Filed On 28-05-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1007/HYD/2008 A.Y. 2003-04 DR. S. VENKATESWARA RAO HYDERABAD (PAN AIRPS 8726 L) VS ASST. CIT CIRCLE 9 (1) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI K. VASANT KUMAR RESPONDENT BY: SMT. VASUNDHARA SINHA D.R. O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX U/S 263 OF THE INCOME TAX ACT 1961 AND PERTAINS TO THE ASSESSMENT YEAR 2003-04 . 2. IN THIS CASE THE MAIN GRIEVANCE OF THE ASSESSEE IS WIT H REFERENCE TO PASSING OF THE ORDER U/S 263 OF THE IT ACT BY THE CIT AND GIVING CERTAIN DIRECTIONS TO ASSESSING OFFICER TO MAKE ADD ITION ON ACCOUNT OF DEFICIENCY IN CASH BALANCE. THE CONTENTION OF THE ASSE SSEE IS THAT THE CIT NEVER EXAMINED THE BOOKS OF ACCOUNTS OF THE ASSESSEE WHEN THE BOOKS OF ACCOUNTS ARE WELL MAINTAINED BY THE ASSESSEE. TH E AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE MAINTAINED BO OKS OF ACCOUNTS REGULARLY AND CORRECTLY AND THESE BOOKS OF ACCOUNTS ARE SUBJECT TO AUDIT BY A CHARTERED ACCOUNTANT AND AUDITORS HAVE NOT GIVEN ANY ADVERSE COMMENTS REGARDING THE DEFICIENCY IN CASH BALANCE . THE CIT WORKED OUT THE CASH BALANCE WITHOUT EXAMINING THE BOOK S OF ACCOUNTS WHICH IS NOT CORRECT AND HE HAS REACHED A CONCLUSION THAT T HERE IS A 2 2 NEGATIVE CASH BALANCE AND HE HAS DEALT CERTAIN ISSUES WHICH ARE NOT IN THE SHOW CAUSE NOTICE. HE SUBMITTED THAT AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO EXPLAIN HIS CASE AND PRAYED FOR AN OPPO RTUNITY OF HEARING. 3. ON THE OTHER HAND THE DEPARTMENTAL REPRESENTAT IVE EXPRESSED NO OBJECTION TO SET ASIDE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR GIVING AN OPPORTUNITY TO THE ASSESSEE AND TO MODIFY THE DIRECTIONS OF THE CIT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. SINCE BOTH THE PARTIES ARE CONCEDE D THAT THE ISSUE MAY BE SET ASIDE TO THE FILE OF ASSESSING OFFICER TO WORK OUT THE CORRECT CASH BALANCE WITH REFERENCE TO THE BOOKS OF ACCOUNTS OF TH E ASSESSEE WE SET ASIDE THE ENTIRE ISSUE TO THE FILE OF ASSESSING OFFI CER TO PASS FRESH ASSESSMENT ORDER AFTER GIVING AN OPPORTUNITY OF HEARIN G TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO PRODUCE ITS BOOKS OF ACCOUN TS BEFORE THE ASSESSING OFFICER FOR ASCERTAINING CORRECT CASH BAL ANCE. 5. IN THE RESULT APPEAL OF THE ASSESSEE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT : 9. 4.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 9 TH APRIL 2010 3 3 COPY FORWARDED TO: 1. SHRI K. VASANT KUMAR 102 TARAMANDAL COMPLEX SA IFABAD HYDERABAD 2. ACIT CIRCLE 9 (1) HYDERABAD 3. CIT(A)-VI HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP