Somisetti Venkata Tirumala Kondaiah, Kothagudem v. Income Tax Officer, Ward-2, Kithagudem

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY ACCOUNTANT MEMBER ITA NO.1934/HYD/2017 ASSESSMENT YEAR: 2011 - 12 SOMISETTI VENKATA TIRUMALA KONDAIAH ASWARAOPET MANDAL BHADRADI KOTHAGUDEM DIST 507301. VS. INCOME TAX OFFICER WARD - 2 KOTHAGUDEM BHADRADI KOTHAGUDEM DIST TELANGANA. (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. S. SANDHYA REVENUE BY: SRI NILANJAN DEY DR DATE OF HEARING: 18/11/2019 DATE OF PRONOUNCEMENT: 18/11/2019 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 7 HYDERABAD IN APPEAL NO. 412/CIT(A) - 7/2014 - 15 DATED 01/08/2017 PASSED U/S. 143(3) R.W.S 147 & U/S. 250(6) OF THE ACT FOR THE A.Y. 2011 - 12. 2. THE ASSESSEE HAS RAISED THE FOLLOWIN G GROUNDS IN HIS APPEAL: - 1. THE ORDER OF THE LD. CIT(A) S ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN CONFIRMING THE ORDER OF THE A.O. IN REJECTING THE BOOKS OF ACCOUNT AND RESORTING TO ESTIMATION OF INCOME. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE ESTIMATION OF INCOME AT 5% OF THE COST OF GOODS SOLD. 2 4. THE LD. CIT(A) ERRED IN HOLDING THAT THE INVESTMENT MADE IN BUSINESS OF RS. 19 96 852/ - WAS NOT PROPERLY EXPLAINED. THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE APPELLAN T HAD SUFFICIENT SOURCES FOR INVESTMENT. 5. THE LD. CIT(A) ERRED IN CONFIRMING THE LEVY OF INTEREST U/S. 234B OF THE ACT. 6. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 3. AT THE OUTSET THE LD. AR SUBMITTED THAT THE LD. CIT (A) HAS PASSED EX - PARTE ORDER WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD CIT (A) IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PURSUE THE APPEAL . LD. DR ON THE OTHER HAND VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT PROPER OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE HOWEVER ON THE GIVEN DATES OF HEARING NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. C IT (A). IT WAS FURTHER SUBMITTED THAT THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS EX - PARTE ORDER ON MERITS BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) IS IN ORDER AND APPEAL OF THE ASSESSE E MAY BE DISMISSED. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FACTS OF THE CASE I FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. THE LD. CIT(A) HAD POSTED THE CASE FOR HEARING ON THREE OCCASIONS I.E. 15/12/2016 20/06/2017 AND FINALLY 3 26/07/2017. FROM THE RECORD IT IS APPARENT THAT NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A) ON THE GIVEN DATE S OF HEARING. THEREFORE THE LD. CIT (A) WAS LEFT WITH NO OTHER OPTION EX CEPT TO ADJUDICATE THE APPEAL EX - PARTE. IN THIS SITUATION I DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER CONSIDERING THE PRAYER OF THE LD. AR IN THE INTEREST OF JUSTICE I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. CI T (A) IN ORDER TO CONSIDER THE APPEAL AFRESH BY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH I ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN THE PROCEEDINGS FAILING WHICH THE LD. CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 18 TH NOVEMBER 2019. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD DATED: 18 TH NOVEMBER 2019 4 OKK COPY TO: - 1) SOMISETTI VENKATA TIRUMALA KONDAIAH H.NO . 4 - 26B BSR NAGAR ASWARAOPET MANDAL BHADRADI KOTHAGUDEM DIST 507301. 2) INCOME TAX OFFICER WARD - 2 KOTHAGUDEM BHADRADI KOTHAGUDEM DIST TELANGANA STATE. 3) THE CIT(A) - 7 HYDERABAD. 4) THE PR. CIT - 7 HYDERABAD 5) THE DR ITAT HYDERABAD 6) GUARD FILE