M/s. Arka Hotels Private Limited, Hyderabad v. ACIT, Central Circle-1,, Hyderabad

ITA 298/HYD/2013 | 2010-2011
Pronouncement Date: 27-05-2021 | Result: Partly Allowed

Appeal Details

RSA Number 29822514 RSA 2013
Assessee PAN AABCA7646N
Bench Hyderabad
Appeal Number ITA 298/HYD/2013
Duration Of Justice 8 year(s) 2 month(s) 23 day(s)
Appellant M/s. Arka Hotels Private Limited, Hyderabad
Respondent ACIT, Central Circle-1,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 27-05-2021
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB-A
Tribunal Order Date 27-05-2021
Last Hearing Date 01-03-2021
First Hearing Date 28-04-2021
Assessment Year 2010-2011
Appeal Filed On 06-03-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU ACCOUNTANT MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 294/HYD/13 2006-07 M/S.ARKA HOTELS PRIVATE LIMITED HYDERABAD [PAN: AABCA7646N] ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1 HYDERABAD 295/HYD/13 2007-08 296/HYD/13 2008-09 297/HYD/13 2009-10 298/HYD/13 2010-11 FOR ASSESSEE : SHRI S.RAMA RAO AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY DR DATE OF HEARING : 28-04-2021 DATE OF PRONOUNCEMENT : 27-05-2021 O R D E R PER S.S.GODARA J.M. : THESE ASSESSEES FIVE APPEALS ARISE AGAINST THE CIT(A )-1 HYDERABADS ORDER(S); ALL DATED 18-01-2013 PASSED I N CASE NOS.0151 TO 0155/CC-1/HYD/CIT(A)-1/11-12; INVOLVING PROCEEDINGS U/S.143(3) R.W.S.153C (IN AYS.2006-07 TO 2009- 10) & U/S.143(3) (IN AY.2010-11) OF THE INCOME TAX ACT 1961 [IN SHORT THE ACT]; RESPECTIVELY. HEARD SHRI S.RAMA RAO AND SHRI SUNIL KUMAR PANDEY DR REPRESENTING ASSESSEE AND REVENUE RESPECTIVELY. ITA NOS. 294 TO 298/HYD/2013 :- 2 -: 2. IT TRANSPIRES AT THE OUTSET THAT THE INSTANT BATCH OF FIVE APPEALS INVOLVES ALMOST ALL IDENTICAL INTERCONNECTED ISSUES. THE SAME ARE THEREFORE TAKEN UP FOR ADJUDICATION. 3. BOTH THE LEARNED REPRESENTATIVES SUBMITTED BEFORE US THAT THE ASSESSEES FIRST AND FOREMOST IDENTICAL GRIEVAN CE PLEADED IN AYS.2006-07 TO 2009-10S GROUND NOS.2 & 3 CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION TREATING THE CORRESPONDING RECEIPTS OF RS.12 98 135/- RS.2 55 916/- AND RS.45 22 790/-; AS INCOME FROM HOUSE PROPERTY & BUSINESS INCOME; AS THE CASE MAY BE AS PE R ITS P&L ACCOUNT; RESPECTIVELY. AFTER VEHEMENTLY ARGUING IN FAVO UR OF ASSESSEES INSTANT GRIEVANCE FOR SOME TIME LEARNED C OUNSEL ROSE TO HIS SENIORITY AND SUBMITTED THAT IT NO MORE WISH ES TO PRESS FOR THE INSTANT GRIEVANCE SUBJECT TO THE CONDITION TH AT IT DOES NOT FACE THE DOUBLE ADDITION OF VERY SUM(S) UND ER THE TWIN HEADS OF INCOME. 3.1. MR.PANDEY ON THE OTHER HAND PLACED A VERY STRONG RELIANCE ON THE LEARNED LOWER AUTHORITIES ACTION TREA TING THE IMPUGNED RECEIPTS IN THE INSTANT THREE ASSESSMENT YEAR S AS INCOME FROM OTHER SOURCES. HE SOUGHT TO HIGHLIGHT THE F ACT THAT THE SEARCH CARRIED OUT IN ASSESSEES CASE HAD SUFFICI ENTLY PROVED THAT IT HAD BEEN ISSUING ACCOMMODATION ENTRY VOUC HERS TO THE PARENTS OF THE STUDENTS FROM WHOM THE CAPITATION FE E USED TO BE COLLECTED BY THE GROUP CONCERN M/S.JOGINPA LLY B.R. EDUCATIONAL SOCIETY. 3.2. WE HAVE HEARD RIVAL CONTENTIONS. WE MAKE IT CLE AR FIRST OF ALL THAT ASSESSEE HAS ITSELF CONCEDED ITS CHALLENGE TO CORRECTNESS OF LEARNED LOWER AUTHORITIES ACTION TREATI NG THE ITA NOS. 294 TO 298/HYD/2013 :- 3 -: IMPUGNED SUMS; ASSESSMENT-YEAR WISE (SUPRA) AS INCO ME FROM HOUSE PROPERTY AND BUSINESS INCOME; AS THE CASE MAY BE; RESPECTIVELY. THE SHORT POINT THAT STILL REQUIRES OUR AP T ADJUDICATION IS AS TO WHETHER THE VERY AMOUNTS COULD A LSO BE ALLOWED TO BE ASSESSED UNDER THE HEAD BUSINESS ONCE THEY HAVE BEEN ASSESSED AS INCOME FROM OTHER SOURCES. FACED WITH THIS SITUATION WE DEEM IT APPROPRIATE TO RESTORE THE INSTANT ISSUE BACK TO THE FILE OF ASSESSING OFFICER TO THIS LIMITED EXTENT ONLY TO THE EXTENT THAT WHATEVER IS THE INCOME ASSESSED AS INCOME FROM OTHER SOURCES IN THE ASSESSEES HANDS OUT OF ITS BOOKS/P&L A/C OF THE CORRESPONDING ASSESSMENT YEARS SHALL NOT BE ASSESSED UNDER THE HEAD BUSINESS INCOME AS WELL SO AS TO AVOID DOUBL E ADDITION. IT IS MADE CLEAR THAT IT SHALL BE THE ASSESSE ES RISK AND RESPONSIBILITY ONLY TO FILE ON RECORD ALL THE REL EVANT DETAILS PROVING THAT THE VERY SUMS OF ADDITIONS BEFORE US HAVE ALSO BEEN ASSESSED UNDER THE HEAD INCOME FROM HOUSE PROPE RTY AND BUSINESS INCOME; AS THE CASE MAY BE. NEEDFUL SH ALL BE DONE WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. THIS FIRST ISSUE RAISED IN THE ASSESSEES FORMER THREE SUBSTANTIV E GROUNDS IN AYS.2006-07 2007-08 2008-09 AND 2009-1 0 IS PARTLY ACCEPTED FOR STATISTICAL PURPOSES IN FOREGOING TE RMS. 4. NEXT COMES THE ASSESSEES SECOND SUBSTANTIVE ISSUE RAISED IN ITS GROUND NO.5 IN AYS.2006-07 2007-08 A ND 2008- 09 AND GROUND NO.4 EACH IN AYS.2009-10 AND 2010-11 S APPEALS INVOLVING VARYING SUMS OF MONEY TO THE TUNE OF RS.53.30 LAKHS RS.74.50 LAKHS RS.1 28 42 400/- RS.12 LAKHS AND 50.50 LAKHS; RESPECTIVELY TREATED AS UN-EXPLAINED CASH CREDITS U/S.68 OF THE ACT. ITA NOS. 294 TO 298/HYD/2013 :- 4 -: 4.1. MR.RAMA RAOS ONLY ARGUMENT DURING THE COURSE O F HEARING RELIES UPON THIS TRIBUNALS ORDER IN APPEALS FILED BY ITS GROUP ENTITY M/S.J.B.EDUCATIONAL SOCIETY HYDERABAD DT.28- 10-2013 THAT THE VERY SUMS HAVE BEEN ASSESSED THEREIN A ND THEREFORE IT IS A CLEAR CUT INSTANCE OF DOUBT ADDITION I N ASSESSEES HANDS AS WELL. 4.2. THE REVENUES VEHEMENT CONTENTION BEFORE US IS THA T THE ASSESSEE HAS NOT BEEN ABLE TO PROVE THE CORRESPONDING NEXUS BETWEEN THE IMPUGNED ADDITION VIZ-A-VIS THE SUM ASSESS ED IN M/S.J.B.EDUCATIONAL SOCIETY HYDERABADS HANDS. THE FACT ALSO REMAINS THAT THE ASSESSING OFFICER APPEARS TO HAVE FILE D A REMAND REPORT DT.22-04-2014 PRIMA FACIE INDICATING THE ALLEGED NEXUS. BE THAT AS IT MAY SINCE MUCH WATER IS FLOWN DOW N THE STREAM SINCE 2013 WE DEEM IT APPROPRIATE TO RESTORE THE INSTANT SECOND ISSUE AS WELL BACK TO THE FILE OF ASSESS ING OFFICER FOR HIS AFRESH FACTUAL RE-CONCILIATION TO ENSU RE THAT THE IMPUGNED DOUBLE ADDITION IS NOT MADE IN THE ASSESSEES GROUP ENTITIES HANDS. IT IS FURTHER MADE CLEAR THAT IT SHALL B E A RISK AND RESPONSIBILITY OF THE ASSESSEE ONLY TO FILE ITS SU PPORTIVE EVIDENCE PROVING LIVE NEXUS OF THE IMPUGNED SISTER C ONCERN. THIS SECOND ISSUE ALSO ACCEPTED PARTLY FOR STATISTICAL PURPOSES IN FOREGOING TERMS. THE ASSESSEES APPEALS 294 295 AND 296/HYD/2013 F OR AYS.2006-07 TO 2008-09; RESPECTIVELY RAISING THE INSTAN T TWIN GROUND ONLY ARE PARTLY ALLOWED FOR STATISTICAL PURPOSE S IN ABOVE TERMS. 5. THIS LEAVES US WITH THE ASSESSEES THIRD SUBSTANTIVE GROUND EACH IN ITA NOS.297 AND 298/HYD/2013 FOR AYS .2009- ITA NOS. 294 TO 298/HYD/2013 :- 5 -: 10 AND 2010-11 SEEKING TO DELETE INTEREST DISALLOWANCE( S) OF RS.19 34 277/- AND RS.14 55 802/-; RESPECTIVELY. AFTE R VEHEMENTLY ARGUING SOME TIME IN SUPPORT OF THE ASSESSE ES GRIEVANCE LEARNED COUNSEL INFORMED US THAT HE NO MO RE WISHES TO PRESS FOR THE SAME KEEPING IN MIND THE SMALLNESS OF THE AMOUNTS THEREIN. THIS ASSESSEES THIRD SUBSTANTIVE GROU ND IS REJECTED AS NOT PRESSED IN FOREGOING TERMS. 5.1. THE ASSESSEES LATTER TWIN APPEALS ITA NOS. 297 & 298/HYD/2013 ARE PARTLY ACCEPTED FOR STATISTICAL PURPOSE S IN THE VERY TERMS. 6. IT LASTLY TRANSPIRES THAT THE ASSESSEE HAS ALSO RAISED ITS MAIN AS WELL AS ADDITIONAL SUBSTANTIVE GROUND SEEKING TO CHALLENGE VALIDITY OF SECTION 153C PROCEEDINGS ON VA RIOUS FACTS. LEARNED COUNSEL MADE IT CLEAR DURING THE COURS E OF HEARING THAT IT NO MORE WISHES TO PRESS FOR THE SAID LEG AL ISSUE AS WELL. ALL THESE ASSESSEES MAIN AS WELL AS ADDITI ONAL GROUNDS QUA TO THIS EFFECT SHALL STAND DECLINED AS NOT PRESSED THEREF ORE. 7. ALL THESE ASSESSEES APPEALS ARE PARTLY ALLOWED FO R STATISTICAL PURPOSES IN ABOVE TERMS. A COPY OF THIS CO MMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH MAY 2021 SD/- SD/- (LAXMI PRASAD SAHU ) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD DATED: 27-05-2021 TNMM ITA NOS. 294 TO 298/HYD/2013 :- 6 -: COPY TO : 1.M/S.ARKA HOTELS PRIVATE LIMITED C/O.M/S.MAHESH VIRENDER & SRIRAM CHARTERED ACCOUNTANTS 6-3-788/36 & 37A AMEER PET HYDERABAD. 2.THE ASST. COMMISSIONER OF INCOME TAX CENTRAL CIR CLE-1 HYDERABAD. 3.CIT(APPEALS)-1 HYDERABAD. 4.CIT(CENTRAL)- HYDERABAD. 5.D.R. ITAT HYDERABAD. 6.GUARD FILE.