Gajavalli Venkateswara Rao, Vijayawada v. CIT (A), , Vijayawada

ITA 492/VIZ/2017 | misc
Pronouncement Date: 20-11-2019 | Result: Allowed

Appeal Details

RSA Number 49225314 RSA 2017
Assessee PAN ABUPG4935D
Bench Visakhapatnam
Appeal Number ITA 492/VIZ/2017
Duration Of Justice 2 year(s) 2 month(s) 7 day(s)
Appellant Gajavalli Venkateswara Rao, Vijayawada
Respondent CIT (A), , Vijayawada
Appeal Type Income Tax Appeal
Pronouncement Date 20-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 20-11-2019
Last Hearing Date 08-11-2017
First Hearing Date 08-11-2017
Assessment Year misc
Appeal Filed On 13-09-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM . . . BEFORE SHRI V. DURGA RAO JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH ACCOUNTANT MEMBER ./ I.T. A.NO. 492/ VIZ/201 7 ( / BLOCK A SSESSMENT Y EAR : 1990 - 2000 ) GAJAVALLI VENKATESWARA RAO C/O P.VENKATESWARA RAO INCOME TAX PRACTITIONER #13 - 1 - 20 G - 3 LAKSHMI APARTMENTS OLD BANK ROAD GUNTUR [ PAN : ABUPG4935D ] VS. ASST.COMMISSIONER OF INCOME TAX CIRCLE - 2(1) VIJAYAWADA ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI P.VENKATESWARA RAO AR / RESPONDENT BY : S HRI D . K.SONOWAL CIT DR / DATE OF HEARING : 14 . 1 1 . 201 9 / DATE OF PRONOUNCEMENT : 20 . 1 1 . 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH ACCOUNTANT MEMBER : TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS ) [CIT(A)] VIJAYAWADA IN I.T.A. NO. 419/CIT(A)/VJA/2014 - 15 DATED 16 . 03 .201 7 FOR THE BLOCK PERIOD OF 1990 - 2000. 2 I.T.A. NO .492 /VIZ/201 7 BLOCK A.Y. 1990 - 2000 GAJAVALLI VENKATESWARA RAO VIJAYAWADA 2. BRIEF FACTS OF THE CASE ARE THAT A SEARCH U/S 132 WAS CONDUCTED IN THE CASE OF SHRI GAJAVALLI GURUNADHA RAO ON 05.09.2000. SIMULTANEOUSLY SURVEY U/S 133A WAS ALSO CONDUCTED IN THE PREMISES OF HOTEL SAMRAT VIJAYAWADA. SUBSEQUENTLY SEARCH WAS ALSO C ONDUCTED IN THE BUSINESS PREMISES OF HOTEL SAMRAT ON 12.09.2000 . THE ASSESSING OFFICER (AO) ISSUED THE NOTICE U/S 158BC AND COMPLETED THE ASSESSMENT FOR THE BLOCK PERIOD OF 10 YEARS FROM 01.04.1990 TO 05.09.2000 ON TOTAL UNDISCLOSED INCOME OF RS.73 70 000/ - . 3. AGAINST WHICH THE ASSESSEE FILED THE APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) ALLOWED THE APPEAL PARTLY. 4. AGAINST THE ORDER OF THE LD.CIT(A) THE ASSESSEE FILED APPEAL BEFORE US . DURING THE APPEAL HEARING THE ASSESSEE HAS RAISED AS MANY AS 8 GROUNDS OUT OF WHICH GROUND NO.2 TO 7 ARE RELATED TO THE VALIDITY OF ASSESSMENT MADE U/S 158BC OF THE ACT WITHOUT HAVING CONDUCTED THE SEARCH IN THE PREMISES OF THE ASSESSEE. DURING THE APPEAL HEARING THE LD.AR SUBMITTED THAT THE ASSESSMENT WAS COMPLETE D FOR THE BLOCK PERIOD FROM 01.04.1990 TO 05.09.2000 AND NO SEARCH WAS CONDUCTED IN THE PREMISES OF THE ASSESSEE ON 05.09.2000. NO INCRIMINATING MATERIAL WAS FOUND AND SEIZED EITHER FROM THE ASSESSEE OR FROM THE HOTEL PREMISES OF 3 I.T.A. NO .492 /VIZ/201 7 BLOCK A.Y. 1990 - 2000 GAJAVALLI VENKATESWARA RAO VIJAYAWADA HOTEL SAMRAT ON 12.09.2000 . THEREFORE SUBMITTED THAT THE ASSESSMENT MADE U/S 158BC IS INVALID HENCE ARGUED THAT THE SAME REQUIRED TO BE QUASHED. THE LD.AR FURTHER SUBMITTED THAT THE SEARCH WAS CONDUCTED IN THE CASE OF GAJAVALLI GURUNADHA RAO ON 12.09.2000 AND NO IN CRIMINATING MATERIAL WAS FOUND AS EVIDENCED FROM THE PANCHNAMA DATED 12.09.2000 . THEREFORE ARGUED THAT THE ASSESSMENT MADE IN THE HANDS OF THE ASSESSEE IS INVALID. 5. ON THE OTHER HAND THE LD.DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES AND STRONGLY ARGUED THAT THERE WAS VALID SEARCH IN THE CASE OF THE ASSESSEE THUS ARGUED THAT NO INTERFERENCE IS CALLED FOR IN THE ORDERS OF THE LOWER AUTHORITIES AND HENCE REQUESTED TO UPHOLD THE ORDER OF THE LD.CIT(A). 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THE INSTANT CASE THE AO FRAMED THE ASSESSMENT U/S 158BC FOR THE BLOCK PERIOD FROM 01.04.1990 TO 05.09.2000 AND AS PER THE ASSESSMENT ORDER SEARCH WAS CONDUCTED IN THE CASE OF SHRI GAJAVALLI GURUNADHA RAO ON 05. 09.2000 AND T HERE IS NO EVIDENCE FOR CONDUCTING THE SEARCH ON 05.09.2000. A SURVEY U/S 133A WAS CONDUCTED IN THE PREMISES OF HOTEL SAMRAT AS PER PARA NO.2 OF THE ASSESSMENT ORDER. THE BASIS FOR INITIATION 4 I.T.A. NO .492 /VIZ/201 7 BLOCK A.Y. 1990 - 2000 GAJAVALLI VENKATESWARA RAO VIJAYAWADA OF ASSESSMENT PROCEEDINGS WAS THE SEARCH STATED TO BE CONDUCTED U/S 132 ON 05.09.2000 IN THE CASE OF SHRI GAJAVALLI GURUNADHA RAO AND THE STATEMENTS RECORDED U/S 132 ON 05.09.2000. THE ASSESSMENT WAS ALSO FRAMED FOR THE BLOCK PERIOD FROM 01.04.1990 TO 05.09.2000. AS SEEN FROM THE NOTICE ISSUED U/S 15 8BC DATED 06.12.2000 IT WAS ISSUED FOR THE BLOCK PERIOD FROM 01.04.1990 TO 05.09.2000. THE ASSESSEE SUBMITTED THAT NO SEARCH WAS CONDUCTED IN THE CASE OF THE ASSESSEE ON 05.09.2000 . IN SUPPORT OF HIS ARGUMENTS THE ASSESSEE FILED COPY OF WARRANT ISSUED ON 30.08.2000 IN THE CASE OF SHRI GAJAVALLI GURUNADHA RAO AND SHRI GAJAVALLI VENKATESWARA RAO MENTIONING THE PREMISES TO BE SEARCHED AS HOTEL SAMRAT VIJAYAWADA. AS PER THE ACKNOWLEDGEMENTS PLACED ON THE COPY OF WARRANT IT WAS EXECUTED ON 12.09.2000 BU T NOT ON 05.09.2000. THE PANCHNAMA WAS ALSO DATED 12.09.2000 WHICH ESTABLISHES THAT THE SEARCH WAS COMMENCED ON 12.09.2000 AT 3.30 P.M. AND CLOSED AT 4.00 P.M. AS PER THE PANCHNAMA DATED 12.09.2000 NO INCRIMINATING MATERIAL WAS FOUND AND NO BOOKS OF AC COUNTS WERE SEIZED. DURING THE APPEAL HEARING THE LD.DR WAS ASKED TO PRODUCE THE COPIES OF THE PANCHNAMA DRAWN IN RESPECT OF SEARCH CONDUCTED ON 05.09.2000 BUT THE DEPARTMENT FAILED TO PRODUCE ANY EVIDENCES WITH REGARD TO SEARCH ON 05.09.2000 INSPITE OF GIVING REPEATED OPPORTUNITIES. THEREFORE FROM THE COPY OF WARRANT PANCHNAMA DATED 12.09.2000 IT IS 5 I.T.A. NO .492 /VIZ/201 7 BLOCK A.Y. 1990 - 2000 GAJAVALLI VENKATESWARA RAO VIJAYAWADA ESTABLISHED THAT THERE WAS NO SEARCH ON 05.09.2000 HENCE NOTICE ISSUED U/S 158BC FOR THE PERIOD FROM 01.04.1990 TO 05.09.2000 IS INVALID. ACCORDINGLY WE QUASH THE NOTICE ISSUED U/S 158BC OF THE ACT AND CONSEQUENT ASSESSMENTS MADE U/S 158BC ARE ANNULLED. ACCORDINGLY THE APPEAL OF THE ASSESSEE IS ALLOWED. 6.1. SINCE WE HAVE QUASHED THE NOTICE U/S 158BC WE CONSIDER IT IS NOT NECESSARY TO ADJUDICATE TH E OTHER GROUNDS RAISED BY THE ASSESSEE. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH NOVEMBER 2019. SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 20.11.2019 L.RAMA SPS 6 I.T.A. NO .492 /VIZ/201 7 BLOCK A.Y. 1990 - 2000 GAJAVALLI VENKATESWARA RAO VIJAYAWADA / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE - GAJAVALLI VENKATESWARA RAO C/O P.VENKATESWARA RAO INCOME TAX PRACTITIONER #13 - 1 - 20 G - 3 LAKSHMI APARTMENTS OLD BANK ROAD GUNTUR 2 . / THE REVENUE - ASST.COMMISSIONER OF INCOME TAX CIRCLE - 2(1) VIJAYAWADA 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX VIJAYAWADA 4. THE COMMISSIONER OF INCOME TAX (APPEALS) VIJAYAWADA 5 . / DR ITAT VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT VISAKHAPATNAM