Sridhar Reddy Erra, Ranga Reddy v. Income Tax Officer, Ward-9(3), Hyderabad

ITA 556/Hyd/2018 | 2011-2012
Pronouncement Date: 19-11-2019 | Result: Partly Allowed

Our System has flagged this appeal as eligible for Vivad Se Vishwas Scheme. If you are party to this appeal, get on a Free Consultation Call with our team of Legal Experts who shall guide you as to how you can save huge Interest and Penalty in VSV Scheme.


Apply Now
        
Try VSV Calculator

Appeal Details

RSA Number 55622514 RSA 2018
Assessee PAN BFWPS0618J
Bench Hyderabad
Appeal Number ITA 556/Hyd/2018
Duration Of Justice 1 year(s) 7 month(s) 23 day(s)
Appellant Sridhar Reddy Erra, Ranga Reddy
Respondent Income Tax Officer, Ward-9(3), Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 19-11-2019
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB-B
Tribunal Order Date 19-11-2019
Date Of Final Hearing 19-11-2019
Next Hearing Date 19-11-2019
Last Hearing Date 06-09-2018
First Hearing Date 20-07-2018
Assessment Year 2011-2012
Appeal Filed On 26-03-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B - SMC HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY ACCOUNTANT MEMBER ITA NO.556/HYD/2018 ASSESSMENT YEAR: 2011 - 12 SRI ERRA SRIDHAR REDDY 9 - 6/2 DWARAKAPURAM COLONY DILSUKHNAGAR SAROORNAGAR MANDAL RANGAREDDY DIST HYDERABAD 500 060. PAN: BFWPS 0618 J VS. INCOME TAX OFFICER WARD - 9(3) IT TOWERS AC GUARDS MASAB TANK HYDERABAD - 500004. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI A.V. RAGHURAM REVENUE BY: SRI NILANJAN DEY DR DATE OF HEARING: 19/11/2019 DATE OF PRONOUNCEMENT: 19/11/2019 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 7 HYDERABAD IN APPEAL NO. 630/CIT(A) - 7/2014 - 15 DATED 24/03/2016 PASSED U/S. 144 R.W.S U/S. 250(6) OF THE ACT FOR THE A.Y. 201 1 - 12 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN HIS APPEAL: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE ORDER OF THE LD. CIT(A) DISMISSING THE APPEAL OF THE APPELLANT IS ERRONEOUS ILLEGAL AND UNSUSTAINABLE IN LAW APART FROM BEING IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE AND HAS TO BE SET ASIDE. 2 2. WITHOUT PREJUDICE TO ABOVE THE LD. CIT(A) ERRED IN SUSTAINING THE ASST. ORDER WITHOUT GOING INTO THE CONTE NTIONS RAISED BY THE APPELLANT AND AS WELL AS FROM THE FACTS EMANATING FROM RECORD. 3. THE LD. CIT(A) ERRED IN SUSTAINING THE ADDITION OF RS. 13 38 837 WHICH ADDITION IS BASED ON ESTIMATION MADE BY THE A.O. AT A HIGHER RATE OF 5% OF STOCK PUT UP FOR SALE. 4. WITHOUT PREJUDICE TO ABOVE THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THAT THE A.O. COMMITTED ILLEGALITY BY ESTIMATING THE INCOME ON THE STOCK PUT UP FOR SALE AS WELL AS TAKING THE INCOME WHICH IS ADMITTED BY TH E APPELLANT IN THE RETURN OF INCOME. 5. THE LD. CIT(A) ERRED IN SUSTAINING THE AD D IT I ON OF RS. 20 37 037 MADE BY THE A.O. ON THE ALLEGED GROUND THAT THE SOURCE WAS NOT EXPLAINED. THE AUTHORITIES BELOW FAILED TO APPRECIATE THAT THE APPELLANT HAS BEEN RUNNIN G THE BUSINESS FOR THE EARLIER AND THE AMOUNT OF RS. 20 37 037 WHICH IS PART OF TOTAL LICENCE FEE PAID IS OUT OF BUSINESS FUNDS OF THE APPELLANT. 3. AT THE OUTSET THE LD. AR SUBMITTED THAT DUE TO THE PROBLEMS CROPPED UP IN THE ASSESSEES DOMESTIC FRONT THE ASSESSEE COULD NOT COMPLY WITH THE NOTICES SERVED BY ASSESSEE AND WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE THE LD. A.O. HAD COMPLETED THE ASSESSMENT EX - PARTE U/S. 144 OF THE ACT. ON APPEAL THE LD. AR COULD NOT ATTEND ON THE FINAL DATE OF H EARING DUE TO UNAVOIDABLE CIRCUMSTANCES HOWEVER THE LD. CIT (A) HAD DISPOSED OFF THE APPEAL EX - PARTE BY NOT CONSIDERING THE CONTENTIONS RAISED THE ASSESSEE AND DISMISSED THE APPEAL BY UPHOLDING THE ORDER THE LD. A.O. IT WAS THEREFORE PLEADED THAT THE MAT TER MAY BE REMITTED BACK TO THE FILE OF THE LD. AO 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 P ROVIDED TO THE ASSESSEE HOWEVER ON THE GIVEN DATES OF HEARING NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A). IT WAS FURTHER 3 SUBMITTED THAT THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS THE ORDER BASED ON THE MATERIALS AVA ILABLE ON RECORD. HENCE IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) NEEDS NO INTERFERENCE AND APPEAL OF THE ASSESSEE 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) AS WELL AS THE LD. AO HAD POSTED THE CASE FOR HEARING ON SEVERAL OCCASIONS. FROM THE RECORD IT IS APPARENT THAT NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A) AS WELL AS THE LD. AO ON THE GIVEN DATES OF HEARING / FINAL HEARING . THEREFORE THE LD. AO AND THE LD. CIT (A) W ERE LEFT OUT WITH NO OTHER OPT ION EXCEPT TO ADJUDICATE THE APPEAL EX - PARTE BASED ON THE MATERIALS AVAILABLE ON RECORD. 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 H EREBY REMIT THE MATTER BACK TO THE FILE OF LD. AO 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. REVENUE AUTHORITIES IN THE IR PROCEEDINGS FAILING WHICH THE LD. REVENUE AUTHORITIES 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. 4 5. IN THE RESULT THE APPEAL OF TH E ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER 2019. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD DATED: 19/11/2019 OKK COPY TO: - 1) SRI ERRA SRIDHAR REDDY C/O. A.V. RAGHU RAM P. VINOD PEDDI RAJULU ADVOCATES 610 BABUKHAN ESTATE BASHEERBAGH HYDERABAD - 1 2) INCOME TAX OFFICER WARD - 9(3) IT TOWERS AC GUARDS HYDERABAD - 04. 3) THE CIT(A) - 7 HYDERABAD 4) THE PR. CIT - 7 HYDERABAD 5) THE DR ITAT HYDERABAD 6) GUARD FILE