M/s. Goman Agro Farms Pvt.Ltd, Hyderabad v. ITO (OSD)-2,, Hyderabad

ITA 1644/HYD/2010 | 2007-2008
Pronouncement Date: 28-09-2011 | Result: Allowed

Appeal Details

RSA Number 164422514 RSA 2010
Assessee PAN AABCG4000C
Bench Hyderabad
Appeal Number ITA 1644/HYD/2010
Duration Of Justice 9 month(s) 7 day(s)
Appellant M/s. Goman Agro Farms Pvt.Ltd, Hyderabad
Respondent ITO (OSD)-2,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 28-09-2011
Assessment Year 2007-2008
Appeal Filed On 21-12-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN JUDICIAL MEMBER AN D SHRI AKBER BASHA ACCOUNTANT MEMBER ITA NO. 1644/HYD/2010 (ASSESSMENT YEAR 2007-08) M/S.GOMAN AGRO FARMS PVT. LTD. HYDERABAD PAN: AABCG4000C VS INCOME-TAX OFFICER (OSD)-2 CENTRAL RANGE-1 HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SHRI K.C. DEVDAS RESPONDENT BY: SHRI B.V. PRASAD REDDY DATE OF HEARING: 22.09.2011 DATE OF PRONOUNCEMENT: 28.09.2011 ORDER PER ASHA VIJAYARAGHAVAN J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-VII HYDER ABAD DATED 8.10.2010 FOR THE ASSESSMENT YEAR 2007-08. 2. ASSESSMENT IN THIS CASE WAS COMPLETED BY THE A SSESSING OFFICER U/S. 143(3) OF THE INCOME-TAX ACT 1961 BY DETERMINING THE TOTAL INCOME AT RS. 1 47 708 AGAINST THE INCOME RET URNED AT RS. NIL BY MAKING THE ADDITION. 3. THE LEARNED COUNSEL FOR THE ASSESSEE APPEARED BE FORE THE CIT(A) AND ARGUED THAT THE ASSESSMENT WAS WRONGLY R EOPENED U/S. 147 OF THE ACT AND THE ASSESSING OFFICER HAS WRONGL Y MADE VARIOUS ADDITIONS. THE CIT(A) HELD THAT '4. IT IS SEEN THAT SRI B. RAMALINGA RAJU EX- CHAIRMAN OF M/S. SATYAM COMPUTER SERVICES LIMITED (SCSL) HAD MADE A STATEMENT THAT HE HAD FUDGED THE ACCOUNT OF M/S. SCSL FOR THE LAST SEVERAL YEARS WHI CH HAS LED TO MANIPULATION AND FALSIFICATION OF REVENU ES AND PROFITS IN THE ACCOUNTS. IT APPEARS THAT THERE ARE SEVERAL COMPANIES FLOATED BY THE RELATIVES OF SRI B . RAMALINGA RAJU EX-CHAIRMAN OF M/S. SCSL AND THEY I.T.A. NO. 1644/HYD/2010 M/S. GOMAN AGRO FARMS PVT. LTD. ======================== 2 ARE ALL CONNECTED TO SRI B. RAMALINGA RAJU DIRECTLY OR INDIRECTLY. THEREFORE THE ACTION TAKEN IN THE CAS E OF M/S. SCSL HAS GOT WIDER RAMIFICATIONS IN RELATED CASES. HENCE THE ASSESSING OFFICER HAS RE-OPENED THE ASSESSMENT. THEREFORE I AM OF THE VIEW THAT T HE REOPENING OF THE ASSESSMENT BY THE ASSESSING OFFICE R IS JUSTIFIED. HENCE THIS GROUND OF APPEAL IS DISMISSED. 5. THE LAST GROUND OF APPEAL IS WITH REGARD TO THE ADDITION MADE BY THE ASSESSING OFFICER OF RS. 1 47 708 TOWARDS INCREASE IN THE CURRENT LIABILITIE S. IN THIS REGARD THE AUTHORISED REPRESENTATIVE H AS SUBMITTED THAT THE ASSESSING OFFICER IS NOT JUSTIFI ED TO MAKE THE ABOVE ADDITION ON THE GROUND THAT THE LOAN S AND SOURCES OF THE SAME ARE NOT CONFIRMED. IT IS THE OBSERVATION OF THE ASSESSING OFFICER THAT THOUGH TH E APPELLANT HAS GIVEN THE CONFIRMATION WITH REGARD TO THE OTHER LIABILITIES AND LOANS BUT THERE IS NO CONFIRMATION WITH REGARD TO RS. 1 47 708. THEREFOR E THE ASSESSING OFFICER HAS ADDED THE SAID LIABILITY U/S. 68 OF THE I.T. ACT 1961 AS UNEXPLAINED. HENCE HAVING SEEN THE FACTS OF THE CASE AND ON PERUSAL OF SUBMISSIONS MADE BY THE AUTHORISED REPRESENTATIVE I AM OF THE VIEW THAT THE ADDITION MADE BY THE ASSESSING OFFICER IS JUSTIFIED. ACCORDINGLY THIS GROUND OF APPEAL IS DISMISSED.' 4. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US WI TH THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED CIT(A)-VII HYDERABAD IN CONFIRMING THE ADDITION OF RS. 1 47 708 TOWARDS UNEXPLAINED CREDITS IS TOTALLY CONTRARY TO THE FACT S AND EVIDENCE ON RECORD AND IS THEREFORE CLEARLY UNSUSTAINABLE. 2. THE APPELLANT DENIES ITS LIABILITY TO BE ASSESSE D TO THE LEVY OF INTEREST U/S. 234A AND 234B. 5. THE LEARNED COUNSEL FOR THE ASSESSEE SHRI DEVDA S POINTED OUT THAT SIMILAR CASES IN SATYAM GROUP HAVE BEEN DE CIDED BY THE THIS TRIBUNAL IN THE CASE OF M/S. UTKARSHADA BIOTEC H PVT. LTD. IN I.T.A. NO. 743/HYD/2011 ORDER DATED 5.8.2011 WHEREI N THE ITAT HELD AS UNDER: '3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO PROPER OPPORTUNITY OF HEARING WAS GIVEN TO THE ASSESSEE BY THE ASSESSING OFFICER AS ITS RECORDS WE RE I.T.A. NO. 1644/HYD/2010 M/S. GOMAN AGRO FARMS PVT. LTD. ======================== 3 IMPOUNDED BY THE CBI AND WERE RELEASED ONLY AFTER THE ASSESSMENT PROCEEDINGS IN THESE CASES WERE COMPLETED. IN THESE FACTS HE ARGUED THAT IN THE INTEREST OF JUSTICE THE ORDERS OF THE AUTHORITIES BELOW SHOULD BE SET ASIDE AND THESE MATTER SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR D E NOVO ASSESSMENT. LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN VIEW OF THE FACT THAT THE RECORDS OF THE ASSESSEES WERE IMPOUNDED BY THE CBI AND WERE RELEASED ONLY AFTER THE COMPLETION OF THE ASSESSMENT PROCEEDINGS IN THESE CASE WE ARE OF THE VIEW THAT IT SHALL BE IN THE INTEREST OF JUSTICE TO SET ASIDE THE ORDERS OF THE REVENUE AUTHORITIES AND RESTORE THESE MATTERS TO T HE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO F RAME THE ASSESSMENT DE NOVO AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEES. WE DIRECT ACCORDINGLY. 5. IN THE RESULT ALL THE THREE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES.' 6. RESPECTFULLY FOLLOWING THE ORDER OF THE CO-ORDIN ATE BENCH OF THIS TRIBUNAL WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES IN THIS CASE AND RESTORE THE ENTIRE MATTER TO THE FILE OF T HE ASSESSING OFFICER FOR DE NOVO ASSESSMENT. THE ASSESSING OFFI CER SHALL AFFORD A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE FOR PRESENTING ITS CASE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH SEPTEMBER 2011. SD/- (AKBER BASHA) ACCOUNTANT MEMBER SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER HYDERABAD DATED THE 28 TH SEPTEMBER 2011 TPRAO I.T.A. NO. 1644/HYD/2010 M/S. GOMAN AGRO FARMS PVT. LTD. ======================== 4 COPY FORWARDED TO: 1. M/S. GOMAN AGRO FARMS PVT. LTD. C/O. B. VIJAYA PRASAD CHARTERED ACCOUNTANT G-26 RBVR REDDY HOSTEL COMP LEX TILAK ROAD HYDERABAD. 2. INCOME-TAX OFFICER (OSD)-2 CENTRAL RANGE-1 HY DERABAD. 3. THE CIT(A)-VII HYDERABAD 4. THE CIT (CENTRAL) HYDERABAD 5. DR B-BENCH ITAT HYDERABAD.