M/s Chalasani Constructions Pvt Ltd, Hyderabad v. The ACIT, Circle-2(1),, Vijayawada

ITA 500/VIZ/2007 | 2002-2003
Pronouncement Date: 20-01-2011 | Result: Allowed

Appeal Details

RSA Number 50025314 RSA 2007
Assessee PAN AABCC7273K
Bench Visakhapatnam
Appeal Number ITA 500/VIZ/2007
Duration Of Justice 3 year(s) 1 month(s) 6 day(s)
Appellant M/s Chalasani Constructions Pvt Ltd, Hyderabad
Respondent The ACIT, Circle-2(1),, Vijayawada
Appeal Type Income Tax Appeal
Pronouncement Date 20-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 20-01-2011
Date Of Final Hearing 17-01-2011
Next Hearing Date 17-01-2011
Assessment Year 2002-2003
Appeal Filed On 14-12-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM. BEFORE SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI B.R.BASKARAN ACCOUNTANT MEMBER. I.T.A. NO.500 /VIZAG/200 7 ASSESSMENT YEAR : 2002 - 03 CHALASANI CONSTRUCTIONS PVT LTD ACIT CIRCLE - 2(1) VIJAYAWADA . VS. VIJAYAWADA. PAN : AABCC7273K APPELLANT. RESPONDENT. ASSESSEE BY : SHRI S RAMA RAO ADV. RESPONDENT BY : SHRI T L PETER CIT - DR O R D E R PER SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) ON VARIOUS GROUNDS WHICH ARE AS UNDER: 1. THE ORDER OF THE LD CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW TO THE EXTENT IT IS PREJUDICIAL TO THE APPELLANT. 2. THE LD CIT(A) ERRED IN DISPOSING THE APPEAL BASED ON THE COMMENTS OF THE AO WITHOUT PROVIDING A COPY OF THE REPORT TO THE APPELLANT. 3. THE LD CIT(A) OUGHT TO HAVE CONSIDERED THE EXPLANATIONS SUBMITTED BEF ORE HIM IN THE VARIOUS WRITTEN SUBMISSION FILED BY THE APPELLANT AND HELD THAT THE ADDITIONS MADE BY THE AO ARE NOT JUSTIFIED. 4. THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.75 000/ - OUT OF RS.2 75 000/ - MADE BY THE AO AS UNDERSTATEMENT OF RECEIPTS FROM SRI K KOTESWARA RAO. 5. THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.1 10 000/ - OUT OF RS.3 LAKHS ADDED BY THE AO AS UNDERSTATEMENT OF RECEIPT FROM SRI D PREMASAGAR. 6. THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.2 91 000/ - AS UNDERSTATE MENT OF RECEIPT IN THE CASE OF Z SATYANARAYANA . 2 2. BRIEF FACTS BORNE OUT FROM THE RECORDS ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE WAS REQUIRED TO FURNISH COMPLETE ADDRESS OF ALL PERSONS TO WHOM FLATS WERE SOLD IN THE PREVIOUS Y EAR RELEVANT TO THE ASSESSMENT YEAR 2002 - 03 AND DETAILS OF CONSIDERATION OF EACH FLAT AND OTHER JOB CONTRACTS RECEIVED BY THE ASSESSEE. THESE DETAILS WERE FILED BY THE ASSESSEE AND AFTER PERUSAL THE AO HAS SUMMONED SHRI K KOTESWARA RAO SHRI D PREM SAGAR AND SHRI Z SATYANARAYANA AND RECORDED THEIR STATEMENTS. AFTER RECORDING THEIR STATEMENTS THE AO RECONCILED THE PAYMENTS TOWARDS SALE CONSIDERATION AND JOB CONTRACTS WITH REFERENCE TO THE SALE CONSIDERATION AND JOB CONTRACTS RECEIPTS ACCOUNTED FOR IN THE BOOKS OF ACCOUNTS AND MADE ADDITION OF RS. 2 91 000/ - RS.2 75 000/ - AND RS.3 00 000/ - AS AN EXCESS RECEIPTS FROM Z SATYANARAYANA K KOTESWARA RAO AND D PREMSAGAR RESPECTIVELY. AO HAS ALSO NOTICED THAT ASSESSEE HAS ALSO RECEIVED ADVANCE FOR FLATS FROM S HRI K V SARMA SHRI P S CHANDRA RAO SHRI P AJAY KUMAR SMT K SRIDEVI SHRI Z SATYANARAYANA SHRI D PREM SAGAR SHRI B VENKATESWARA RAO & K SAVITRAMMA. HE HAS ALSO SUMMONED THESE PERSONS AND RECORDED THEIR STATEMENTS. BEING NOT CONVENIENCED WITH THEIR EX PLANATION STATEMENTS HE MADE THE FOLLOWING ADDITIONS U/S 68 OF THE INCOME TAX ACT. : SRI KV SARMA RS. 2 89 780 - 00 SRI PS CHANDRA RAO RS. 98 000 - 00 SRI P AJAY KUMAR RS. 7 44 000 - 00 SMT K SRIDEVI RS. 5 53 000 - 00 SRI Z SATYANARAYANA RS. 5 47 002 - 00 SRI D PREM SAGAR RS. 6 50 000 - 00 SRI B VENKATESWARA RAO & K SAVITRAMMARS. 13 08 068 - 00 3. ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) BUT DID NOT FIND FAVOUR WITH HIM. NOW THE ASSESSEE HAS PREFERRED AN APPEAL BEFORE THE TRIBU NAL WITH THE SUBMISSION THAT HE HAS FURNISHED THE RECONCILIATION STATEMENT ALONG WITH THE DOCUMENTARY EVIDENCES BEFORE THE CIT(A) BUT HE DID NOT EXAMINE THE SAME AND HAS CONFIRMED THE ADDITIONS. 4. THE LD COUNSEL FOR THE ASSESSEE HAS ALSO ADMITTED THAT A LL THESE EVIDENCES COULD NOT BE FILED BEFORE THE AO BECAUSE HE HAS INITIATED THE PROCEEDINGS AT THE FAG END OF THE FINANCIAL YEAR. IN SUPPORT OF HIS CONTENTION HE HAS DRAWN OUR ATTENTION TO THE FACT THAT ON 28.03.2005 THE AO PROPOSED THE ADDITION AND THE ASSESSMENT ORDER WAS PASSED ON 31.03.2005. THEREFORE ASSESSEE DID NOT HAVE SUFFICIENT TIME TO RECONCILE THE DISCREPANCIES POINTED OUT BY THE AO. HE HOWEVER FILED THE RELEVANT EVIDENCES BEFORE THE CIT(A) BUT THE CIT(A) DID NOT EXAMINE THE SAME AND CONF IRMED THE ADDITIONS. THE LD COUNSEL FOR THE ASSESSEE FURTHER STATED THAT IF AN 3 OPPORTUNITY IS PROVIDED HE WILL EXPLAIN ALL THE DISCREPANCIES POINTED OUT BY THE AO ALONG WITH DOCUMENTARY EVIDE NCES. THE LD DR DID NOT OBJECT TO THIS PROPOSITION AND HAS AL SO AGREED THAT LET THE MATTER BE SENT BACK TO THE AO TO RE - ADJUDICATE ALL THE IMPUGNED ISSUE IN THE LIGHT OF THE EVIDENCES FILED BEFORE THE CIT(A). 5. IN THE LIGHT OF THESE FACTS WE ARE OF THE VIEW THAT IN ORDER TO MEET THE ENDS OF JUSTICE THE MATTER SHOULD BE REMIT TED BACK TO THE FILE OF THE AO FOR THE RE - ADJUDICATION OF THE IMPUGNED ISSUES. WE ACCORDINGLY SET ASIDE THE ORDER OF THE CIT(A) AND REMIT THE MATTER BACK TO AO RE - ADJUDICATE ALL THE IMPUGNED ISSUES IN THE LIGHT OF THE EVIDENCES FILED BEFOR E THE CIT(A) AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. PRONOUNCED ACCORDINGLY IN THE COURT ON 20/01/2011. SD/ - SD/ - (B.R. BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICI AL MEMBER VISAKHAPATNAM DATED: 20 TH JANUARY 2011 *MSB/UDC COPY OF ORDER IS FORWARDED TO : 1. SHRI S RAMA RAO ADVOCATE FLAT NO.103 HOUSE NO.3 - 6 - 542/4 INDIRADEVI NILAYAM STREET NO.7 HIMAYATNAGAR HYDERABAD 500 029. 2. ACIT CIRCLE - 2(1) VIJAYA WADA. 3. CIT VIJAYAWADA. 4. CIT(A) VIJAYAWADA. 5. DR ITAT VISAKHAPATNAM. 6. GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM.